2. Description of the services provided by Active Demand
2.3. Standardized formulation of the AD services
2.3.1. AD services for deregulated players
The list of the 24 AD services for deregulated players is given in Table 9. Each of these services is described in detail in Appendix C.
Table 9. List of AD services for deregulated players
Player Principal services Type of AD Product
Short-term load shaping in order to optimise purchases and sales SRP Management of energy imbalance in order to minimise deviations from the declared consumption programme and reduce imbalance costs
SRP Retailer
Reserve capacity to manage short-term risks (for example to mitigate the effect of large wholesale prices in periods of high demand)
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Short-term optimisation through load shaping in order to optimise the operation of its generation portfolio. This may involve attempting to avoid forced generating unit shutdowns in valley periods or avoiding having to turn on expensive and dirty peaking units in high demand periods.
SRP
Management of energy imbalance in order to reduce imbalance costs SRP Centralised
producer
Tertiary reserve provision in order to meet obligation of tertiary reserve provision contracted with the TSO
CRP
Short-term management of energy imbalance in order to minimise deviations from declared production programme in case of low uncertainty
SRP
Load shaping in order to optimise its economic profits SRP Tertiary reserve provision in order to meet contracted tertiary reserve
programme
SRP
Reserve capacity for short-term management of energy imbalance in order to minimise deviations from declared production programme in case of high uncertainty
CRP-2
Reserve capacity for short-term management of energy imbalance but the DP (or PA) knows the direction of the imbalance probably because the time to the forecasted imbalance is shorter (case of medium uncertainty)
CRP
Reserve capacity to manage provision of contracted tertiary reserve in case of medium uncertainty
CRP Decentralised electricity producer or Production aggregator
Reserve capacity to manage provision of contracted tertiary reserve in case of high uncertainty
CRP-2
Short-term local load increase in order to compensate the effect of network evacuation limitations and to be able to produce more.
SRP
Short-term load increase in order to avoid being cut-off (for example in valley hours)
SRP
Local load increase reserve in order to compensate the effect of network evacuation limitations and to be able to produce more or to invest more in generation capacity
CRP
Load increase reserve in order to avoid being partially cut off, or even to be authorized to invest more.
CRP Producers
with regulated tariffs
Reserve capacity to manage energy imbalance in order to minimise deviations from the production program previously declared and reduce the imbalance costs.
CRP-2
Short-term optimisation of purchases and sales by load shaping SRP Traders and
brokers
Short-term optimisation of purchases and sales through reserve capacity
CRP
Management of energy imbalance in case of low uncertainty SRP Management of energy imbalance in case of medium uncertainty CRP Balancing
Responsible Parties
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Large consumers
Minimisation of energy procurement costs SRP
Two examples of such AD services are now given for the retailer: one for a SRP and another one for the CRP. These examples are the ones that will be used later to define the reference use cases for all the deregulated players that will be presented in Subsection 2.5.
The retailer’s main stake is to maximise its margins between the energy bought in the wholesale markets and that same energy resold to its end consumers. The retailer may use AD products to take advantage of arbitrage opportunities in the wholesale markets by shaping its consumer demand appropriately. Likewise, it can use AD to manage its imbalances which may arise from its own prediction errors. Finally, it can use AD to act as reserve capacity in the event of unforeseen events which see prices on wholesale markets increase tremendously.
SRP service: Short-term load shaping in order to optimise purchases and sales
Given the conditions on the wholesale market and in its own retail activities, the retailer is looking to optimally match its demand to those conditions. This may mean selling back or buying electricity on the wholesale markets. To do so, the retailer attempts to use AD to allow it to execute those commercial transactions without the risk of becoming out of balance.
Name of service Short-term load shaping to optimise purchases and sales (uses SRP) Service requester Retailer
Service supplier Aggregator
Service ID SRP-SOPS-RET
Other players involved Consumers, markets, DSO and TSO (for technical verification – see Section 2.4.2).
Service negotiation gate closure
Few hours or one day before the delivery
Availability interval Few hours, probably on peak Minimum volume N/A
Requested/supplied power or power curve shape (MW over time)
- Product volume: Power in MW to be delivered by the aggregator. It depends on the price of purchase of wholesale energy and it depends also on the volume of energy bought by the retailer in the short term
- Activation time,
T
act: Not applicable.- Product deployment duration,
T
dur : Few hours when the price of AD energy is lower than that of wholesale energy.- Deployment and ending ramping limitation range,
R
limdep,R
limend(MW/minute): no specific requirement. The
V
serpo must be provided at the time decided by the retailer.- Tolerance gap between schedule and delivery (minimum and maximum, MW): as per contract.
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Price structure (€, €/MW, €/MWh)
Service standing/option fee (€, €/MW): Not applicable.
Deployment energy price (€/MWh): competitive with the electricity market price at this time.
Locational information (connexion node,
substation (TSO level),etc)
The aggregator must inform the locations of Active Demand to DSO and TSO.
CRP Service: Reserve capacity to manage short-term risks
From experience, the retailer knows that during some periods of the year, it is valuable to have some “slack” available to mitigate the occurrence of adverse events, mostly large wholesale price spikes in period of high demand. In the case of the retailer, this slack could some reserve capacity provided by active demand in the form of a CRP. This capacity is deployable by the retailer under certain conditions agreed by the retailer and the counterparty aggregator.
Name of service Reserve capacity to manage short-term risks (uses CRP) Service requester Retailer
Service supplier Aggregator
Service ID CRP-SR-RET
Other players involved Consumers, markets, DSO and TSO (for technical verification – see Section 2.4.2).
Service negotiation gate closure
A few months before the service can be made available.
Availability interval During a peak predefined period (for example winter) but with a number of activations in the year limited for instance to 3 or 4 times.
Minimum volume N/A Requested/supplied power or power curve shape (MW over time)
- Product volume: Power capacity in MW to be delivered by the aggregator. It depends on the risk management of the retailer
- Activation time,
T
act: Maybe one day before- Product deployment duration,
T
dur : a few hours.- Deployment and ending ramping limitation range,
R
limdep,R
limend(MW/minute): no specific requirement.
- Tolerance gap between schedule and delivery (minimum and maximum, MW): as per contract.
- Specification on limits for energy payback. Price structure (€, €/MW,
€/MWh)
Service standing/option fee (€, €/MW): The retailer pays the aggregator a standing fee in €/MW for having the reserve capacity on its behalf. Deployment energy price (€/MWh): a high price but lower than the highest peak wholesale prices already seen before or forecasted.
Locational information (connexion node,
substation (TSO level), etc)
The aggregator must inform the TSO and the DSO when the requirement of energy is activated by the retailer.
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As mentioned earlier, the use cases for the above two examples are described in Section 2.5. and are used as reference use cases for all the other deregulated players.
A use case for a service represents on a timeline all the interactions between the players involved in the provision of this service (including those involved in the technical verification carried out by the system operators), along with their internal processes.