Potential benefits of load flexibility: a focus on the future Belgian distribution system

Abstract

Since the last United Nations Climate Change Conference in 2015 in Paris (the COP 21), world leaders acknowledged climate change. There is no need any more to justify the switch from fossil fuel-based to renewable energy sources. Nevertheless, this transition is far from being straightforward. Besides technologies that are not yet mature -- or at least not always financially viable in today's economy -- the power grid is currently not ready for a rapid and massive integration of renewable energy sources. A main challenge for the power grid is the inadequacy between electric production and consumption that will rise along with the integration of such sources. Indeed, due to their dependence on weather, renewable energy sources are intermittent and difficult to forecast with today's tools. As a commodity, electricity is a quite distinct good for which there must be perfect adequacy of production and consumption at all time and characterized by a very inelastic demand. High shares of renewable energy sources lead to high price volatility and a higher risk to jeopardize the security of supply. Additionally, the switch to renewable energy sources will lead to an electrification of loads and transportation, and thus the emergence of new higher-consumption loads such as electric vehicles and heat pumps. These new and higher-consumption loads, combined with the population growth, will cause over-rated power load increases with less predictable load patterns in the future.This work focuses on issues specific to the distribution power grid in the context of the current energy transition. Traditional low-voltage grids are perhaps the most passive circuits in power grids. Indeed, they are designed primarily using a fit and forget approach where power flows go from the distribution transformer to the consumers and no element has to be operated or regularly managed. In fact, low-voltage networks completely lack observability due to very low monitoring. The distribution grid will especially undergo drastic changes from this energy transition. Distributed sources and new high-consumption -- and uncoordinated -- loads result in new power flow patterns, as well as exacerbated evening peaks for which it is not designed. The consequences are power overloads and voltage imbalances that deteriorate grid components, such as a main asset like the medium-to-low voltage transformer. Additionally, the distribution grid is characterized by end-users that pay a price for electricity that does not reflect the grid situation -- that is, mostly constant over a year -- and allow little to no actions on their consumption.These issues have motivated authorities to propose a global approach to ensure security of electricity supply at short and medium-term. The latter requires, among others, the development of demand response programs that encourage users to take advantage of load flexibility. First, we propose adequate electricity pricing structures that will allow users to unlock the potential of such demand response programs; namely, dynamic pricings combined with a prosumer structure. Second, we propose a fast and robust two-level optimization, formulated as a mixed-integer linear program, that coordinates flexible loads. We focus on two types of loads; electric vehicles and heat pumps, in an environment with solar PV panels. The lower level aims at minimizing individual electricity bills while, at the second level, we optimize the power load curve, either to maximize self-consumption, or to smoothen the total power load of the transformer. We propose a parametric study on the trade-off between only minimizing the individual bills versus only optimizing power load curves, which have proven to be antagonist objectives. Additionally, we assess the impact of the rising share of flexible loads and renewable energy sources for scenarios from today until 2050. A macro-analysis of the results allows us to assess the benefits of load flexibility for every actor of the distribution grid, and depending on the choice of a pricing structure. Our optimization has proved to prevent evening peaks, which increases the lifetime of the distribution transformer by up to 200%, while individual earnings up to 25% can be made using adequate pricings. Consequently, the optimization significantly increases the power demand elasticity and increases the overall welfare by 10%, allowing the high shares of renewable energy sources that are foreseen.

Doctorat en Sciences de l'ingénieur et technologie

info:eu-repo/semantics/nonPublished

Original document

The different versions of the original document can be found in:

• http://dx.doi.org/10.13140/rg.2.2.27331.71200/1

• http://hdl.handle.net/2013/ULB-DIPOT:oai:dipot.ulb.ac.be:2013/271127