Statnett are continuing last winter’s pilot to encourage aggregated demand to participate in reserve markets in NO1. THEMA’s evaluation of last year’s pilot showed positive experiences and an increased supply of reserves from flexible demand.
Today’s rules for participation in RKOM and RK can be a barrier to participation by small consumers. Specifically, there is a minimum bid size of 10 MW that must be linked to a single point on the transmission grid. There is also a rule prohibiting participation in RKOM while receiving a reduced grid tariff for flexible demand.
The first rule exists mainly for practical reasons – Statnett’s operations must often manually call suppliers to activate bids, and having many smaller bids quickly becomes unmanageable. The second rule exists mainly due to insecurity about the availability of the flexibility, which might be activated for different reasons.
Statnett’s pilot lowered both these requirements. Participants could aggregate 10 MW of demand from multiple transmission grid points, and they could participate in RKOM while receiving a tariff reduction for flexible demand.
The aim was to investigate whether these exceptions could increase the supply of reserves in NO1, where there is limited flexible production and often congestion on the transmission lines to other areas.
Two suppliers participated in the pilot – one heat supplier using electric boilers and one aggregator of smaller commercial loads.
Our evaluation, conducted on behalf of Statnett, shows that the experiences of Statnett and the participants are predominantly positive. The pilot contributed to increased supply of reserves in RKOM, at a cost level between production and other demand, without significant extra costs in planning and analysis.
However, the mild winter resulted in no market-based activation of the pilot participants, though there were successful trial activations of both.
A challenge with activating aggregated RK-bids from lower grid levels is to verify the actual response. We recommended the development of methods to ensure that Statnett do not pay for non-delivered response.
Statnett is continuing the pilot in the winter of 2017/18 to gather further experience under different operational conditions.
Download the report here (in Norwegian):
THEMA Rapport 2017-18 >> RKOM: Evaluering av prøveordning med unntak i NO1