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An interview with the Senior Commercial Developer of DONG Energy

Source: www.gulfoilandgas.com 3/15/2017, Location: Not categorized

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Ahead of the 9th Edition European Electricity Ancillary and Balancing Forum , we spoke with Thomas Kudela, Senior Commercial Developer at DONG Energy, about the importance of demand response and demand side flexibility and how aggregators are changing the landscape for Ancillary Services.

Flexibility plays an important role in demand response. Could you please elaborate on the importance of demand response and demand side flexibility?
The transition to a green economy, comes with the system balancing challenges that many renewables, such as wind and solar bring. The intermittency of wind and solar can be balanced by conventional power plants, distributed generation assets or through demand side flexibility.

Demand side flexibility can help in delivering a greener solution to energy balancing issues that arise from intermittent renewables and also reduce Transmission System infrastructure costs, by shaving off the peaks in national demand.

We are only beginning to scratch the surface in regards to demand side flexibility. For many customers, this journey begins with simple demand curtailment and evolves with incentives from ancillary services and wholesale energy trading markets to deliver dynamic demand side flexibility. The customer would be willing and be able to switch their planned consumption many times during each day in response to differences between forecast and actual renewable output and issues with thermal generation.

How can storage solutions help with capacity management and intermittency of renewable energy?
Traditionally, energy has been produced and used on an instantaneous basis. Storage gives the additional dimension of shifting from times of excess supply, i.e. when windy and/or sunny; to periods of shortage because of low wind or cloud cover.

This can also help in delivering a greener solution to energy balancing issues that arise from intermittent renewables and also reduce Transmission System infrastructure costs, by shaving off the peaks in national demand.

Battery storage makes an excellent partner to Solar PV, in its ability to store energy from sunlight during the day and discharge as we move to the higher demand periods in the early evening as people come home from their jobs and begin cooking the family meal.

Storage solutions need not be limited to battery storage. As an example, additional fuel storage for anaerobic digestion with a less than 80% load factor can help in balancing an energy system in response to signals from the wholesale energy trading market. To some extent, industrial processes can also be perceived as storage, e.g. temperature in a room.

How are aggregators changing the landscape for Ancillary Services and how can customers profit?
We can see that the traditional providers of Ancillary Services are challenged by the “missing money” problem. New providers, like aggregators have been changing the landscape for ancillary services for some years now. Many companies form the role of an aggregator in bringing together smaller flexibility and presenting this either for trading on the wholesale energy trading markets or alternatively presenting this to the transmission system operator for ancillary services.

The positive benefits of this have been seen in the dampening effect on the volatility of energy prices and imbalance prices over the last few years.

Moreover, customers can offer their flexibility into our own balancing scheme, the Renewable Energy Reserve, where we utilize our customer’s flexibility to balance our wind portfolio.

Since distributed energy resources are becoming economically attractive in integrated solutions, we offer “Energy as a Service”, a new value proposition guaranteeing customers energy cost savings within investment costs. We combine all that DONG Energy can offer into one integrated solution, reducing cost and risk, and improving customer sustainability, and where viable, investing in the installation of new assets.

What would you like to achieve by attending the 9th Edition European Electricity Ancillary and Balancing Forum? The European Commission’s proposal of rules for consumer centred clean energy transition, also known as the “Winter Package” will shape the discussions for the next years to come. The efficiency targets, the governance rules and the anticipated active involvement of consumers in the energy system will have a huge impact on the future market design. I am looking forward to discuss these impacts and get more views from the other participants.

I am also interested to gather more insights from the featured presentations and get in touch with the other professionals during the two days of the conference.

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