WECL-ES-01

1. Description of the Use Case

1.1. Name of the Use Case

1.2. Version Management

1.3. Scope and Objectives of Use Case

1.4. Narrative of Use Case

Short description

This BUC describes the DSO long term procurement of flexibility services through a market mechanism to avoid congestions at the distribution medium or low voltage networks. It describes the exchange of information and processes that should be established between DSO, Independent Market Operator (IMO) and Flexibility Provider (FSP). This BUC is divided into five scenarios, namely the five service steps defined in the Active System Management (ASM) report [1] listed below: · Prepare/Pre-qualification: The process in which it is checked whether a unit can deliver the product it intends to sell. · Plan/Forecast: Planning of grid utilization and identifying potential congestions. · Market Phase: Market opening, qualification, bids collection, market clearing and communication of results. · Monitoring and Activation: Grid monitoring and flexibility bids activation to solve the forecasted congestion management · Measurement phase: Validation of delivery

Complete description

This BUC will demonstrate the long-term congestion management procurement of local flexibility products by the DSO.

This BUC describes the exchanges of information and the processes that should be established between DSO, IMO and FSP to solve distribution network local congestions.

The objective is to procure products to ensure the network remains secure and does not go beyond its firm capacity at times of peak demand. The products can be procured from weeks to years ahead delivery, and is aimed towards MV/LV flexibility providers.

The DSO procures the product in the long-term (years to weeks ahead delivery). The DSO procures a band of flexibility that will be activated when needed or as scheduled, one or more times during the life of the contract. The flexibility providers receive a payment for the availability during the life of the contract and if activation is needed, the flexibility provider may receive an additional utilisation payment or not (to be defined at the contract) . If the activation is not delivered, penalties may be applied to the flexibility provider. If the flexibility is delivered as contracted, the DSO proceeds with the settlement as agreed at the contract.

Scenarios:

1. Prepare/Pre-qualification: The pre-qualification process starts once the flexibility service provider expresses interest in entering the flexibility market. This process serves to ensure that a particular flexibility service provider is capable of delivering a given product. This has to be ensured from two perspectives, namely the grid pre-qualification and product pre-qualification. The former ensures that the resource meets the technical requirements to be able to deliver the product and proceed to the market phase and eventually be selected by a system operator. In principle, the grid pre-qualification will be done by the DSO, as FSPs in this BUC are connected to MV and LV grids. The grid pre-qualification may involve both internal simulations by the DSO and/or specific field tests with the FSP. The market or product pre-qualification aims at ensuring that the FSP can participate in a particular market and can provide a particular service considering market and product design aspects. In principle, the product pre-qualification should be done by IMO. If the results of the two types of pre-qualification are approved, the entry of the FSP into the flexibility market is allowed. The validity of the pre-qualification can be indefinite, limited to a certain period of time or conditioned to predefined aspects (e.g. grid conditions). Considering that this BUC WECL-ES-01 describes the long-term products for the Spanish demonstration, it is also possible that the pre-qualification process starts once a market session is open, considering that a market session can last for weeks or longer. Whenever possible, the pre-qualification processes (grid and product) will be combined or coordinate, aiming at having the simplest possible process for the FSP. Likewise, the pre-qualification processes of WECL-ES-01 and WECL-ES-02 will also aim at coordination and simplification whenever the requirement allow to.

2. Plan/Forecast:

In this service phase, the DSO carries internal analysis (e.g. forecasts, power flows) to detect congestions in the grid, which could be solved by the long-term procurement of flexibility. This service phase happens years to weeks ahead.

3. Market Phase:

Based on the flexibility needs identified in the previous market phase, the DSO is able to call a market through the market platform (described in SUC-ES-01). This market, operated by the independent market operator, will procure either availability only or availability and activation. The availability means a capacity band (e.g. in kW) with a start and finish times defined, in which the FSP is expected to provide the flexibility upon the DSO’s call. Alternatively, the availability can also mean that the FSP is obliged to bid in the short-term local congestion management markets (defined in WECL-ES-02) activation products, in which capacity and duration of activation are predefined (in kWh). It is also possible to the DSO to procure activation in the long-term, defining weeks/months in advance the day, time, capacity and duration of activations.

This market phase can be classified as a local market model. It is an auction type of market, in which the gate opening time takes place from than more than year-ahead to weeks ahead. The gate closure time takes place a week-ahead delivery. FSPs participating should have resources connected to medium or low voltage levels.

During this phase there is a qualification process to check if the flexibility provider is able to provide the demand service in terms of quality and cost.

The results of the auction will be published.

4. Monitoring and Activation:

This service phase takes place close to real-time and in real-time. The DSO will monitor the conditions of the grid in real time and send the activation signals to the FSPs committed in the market phase, in accordance to the type of product procured.

When activating the FSPs, the DSO will consider the actual state of the grid. Emergency states in which the procured flexibility activations cannot be concluded are outside the scope of this BUC WECL-ES-01. Emergency states are situations in which market procedures are no longer appropriate to ensure the security of the system.

5. Measurement phase:

In this final service phase, the MO and/or DSO will verify if the flexibility was provided in accordance to the product procured in the market phase. This service phase can take place in the real-time and/or after the real-time. For the measurement of flexibility, a baseline has to be previously defined, to which the actual metered data of the FSP can be compared too. If the FSP is not able to deliver the flexibility in accordance to the predefined market conditions and agreed baseline, penalties may apply, which would decrease the remuneration received by FSP.

1.5. Key Performance Indicatiors (KPI)

1.6. Use case conditions

1.7. Further information to the use case for classification/mapping

1.8. General remarks

2. Diagrams of Use Case

3. Technical Details

3.1. Actors

3.2. References

4. Step by Step Analysis of Use Case

4.1. Overview of Scenarios

Notes

4.2. Steps – Scenarios

5. Information Exchanged

6. Requirements (optional)

1. Service window: Selection of the required date and duration of the service o Start date: 01/06/2021 o Duration: 2 months o Selection of days: M, T, W, T, F, S and S. o Opening time: 8:00 PM o Closing time: 10:00 PM
2. Availability: Selection of the capacity, the direction and the estimated hours of activation. o Capacity: 4MW o Direction: Upwards (up for generation, down for consumption) o Estimated hours of activation: 120h
3. Activation window (in case of activation product): Specific subperiod in an activation window when a particular DER could be activated and thus it must be available. Multiple sets of activation windows can be defined. E.g.: o Day: 01/06/2021 o Hour: 19h o Duration: 2h o Capacity to modify: 1MW o Direction: Upward
4. Local area: Selection of the trading area. Choice by postal code, connection point, lines… (to be determined). o Area: postal code
5. Activation Announcement: Time in advance that a DSO informs a DER that its activation is programmed confirmed.
6. Form of Remuneration: It establishes form of payment to winner DERs Two different terms are defined availability and activation (depending on the product). o Type of product: availability/activation o Availability/Activation cap price: X €/MW or X €/MWh | I.E.08 | | I.E.09 | List of pre-qualified units | List of pre-qualified units for a given market session | I.E.09 | | I.E.10 | List of qualified units (market, technical or consolidated) | List of qualified units for a given market session. The list can refer to the market qualification, technical qualification or the consolidated list. | I.E.10 | | I.E.11 | Bid | Composed of bidding information | I.E.11 | | I.E.12 | Validate market results | Validated market results by either the IMO (market), the DSO (technical) or the consolidated market results. | I.E.12 |

7. Common Terms and Definitions

8. Custom Information (optional)