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ZJU Demonstration of Friendly Interactive Grid Under the Background of Electricity Market Reform in China Hongxun Hui, Xing Jiang, Yi Ding*, Yonghua Song College of Electrical Engineering, Zhejiang University Li Guo State Grid Jiangsu


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College of Electrical Engineering Zhejiang University

Demonstration of Friendly Interactive Grid Under the Background of Electricity Market Reform in China

Hongxun Hui, Xing Jiang, Yi Ding*, Yonghua Song College of Electrical Engineering, Zhejiang University Li Guo State Grid Jiangsu Electric Power Company June 2017

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CONTENTS

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Introduction

1

Pilot policies of demand response in China

2

Demonstration of friendly interactive grid

3

Conclusions and discussions

4

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Background

Two big challenges: Energy consumption, Environmental pollution

Fig.1. Growing increase of Energy Consumption[1] [1] Worldwide, B. P. "BP Energy Outlook 2035." (2015). Fig.2 Environmental Pollution

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The increasing share of renewables in the power system

Fig.3 Renewable Energies (e.g. wind & photovoltaic) Extra pressure of power system secure operation: Less predictable and controllable; High fluctuations and intermittence.

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Demand Response

Fig.4 EcoGrid EU-assumed wind power capacity in 2025[2]

Residual demand Overflow [2] Ding Y, Nyeng P, Ostergaard J, et al. Ecogrid EU-a large scale smart grids demonstration

  • f

real time market- based integration of numerous small DER and DR

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Fig.5 Smart house Fig.6 Conventional generating units

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CONTENTS

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Introduction

1

Pilot policies of demand response in China

2

Demonstration of friendly interactive grid

3

Conclusions and discussions

4

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The business model of demand response in Jiangsu Province

Fig.7 Business model of demand response in Jiangsu Province

  • The business model includes three entities: Government, Electricity

Company and Demand Response Providers (DRP).

Demand Response Providers Capital Pool Electricity Company Government Spike Pricing Policy Response Loads Market Operation Market Management Subsidy Income Benefits No income in the market. Making price policies Maintaining the electric power system s operation and providing technical platform for demand response providers Government specific funds

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The spike pricing policy

Fig.8 Electricity price policy in Jiangsu Province

  • The spike price is based
  • n the original peak valley
  • price. It increases 0.1

Yuan/kWh for the large industrial customers.

  • The spike price policy will

be carried out when the

  • utside temperature is
  • ver 35 degrees Celsius in

summer (July and August).

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time/h Electricity Price Yuan/kWh Valley Peak Flat Flat Peak

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time/h Electricity Price Yuan/kWh 0.1 Yuan/kWh Spike

(1) Original peak-valley price policy (2) Pilot spike price policy

  • Most of the provinces in

China.

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The Effect of Demand Response

  • Around 56,000 large industrial customers were implemented the spike price

policy.

  • Compared with the original peak-valley price policy, the income of electricity

increase 32 million Yuan and 45.51 million Yuan in 2015 and 2016, respectively.

  • All the increased income were used to subsidize the customers or aggregators

who successfully implemented DR.

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CONTENTS

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Introduction

1

Pilot policies of demand response

2

Demonstration of friendly interactive grid

3

Conclusions and discussions

4

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Demonstration——Friendly Interactive System

  • f Supply and Demand (FISSD)

Demonstration area in Suzhou

  • Administrative region: 78 km2
  • Resident population: 780,000

 Large industry customers:1420  Commercial customers:32437  Residential customers: 352,600

  • Load aggregators: 5

Demonstration area in Changzhou

  • Administrative region: 182 km2
  • Resident population: 1,600,000

 Large industry customers:590  Commercial customers:21755  Residential customers: 530,000

  • Load aggregators: 3

It is approved and supported by Ministry of Science and Technology of the People’s Republic of China.(2016-2020)

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Demonstration——Friendly Interactive System

  • f Supply and Demand (FISSD)

It is approved and supported by Ministry of Science and Technology of the People’s Republic of China.(2016-2020)

Large industrial customers: more than 1,000 enterprises. Residential customers: 110,000 houses and 22 aggregators Commercial customers: 250 malls, 300 hotels, 150

  • ffice buildings and so on.

Distributed generations: wind power and photovoltaic power Charging stations: covering 30,000 houses Interaction platform Energy management system Business model Two main objectives: (1) Peak-valley difference of loads decrease by 5.8%. (2) Comprehensive energy consumption of residential customers decrease by 5.5%.

Time (hour) Operating power (kW) 0 2 4 6 8 10 12 14 16 18 20 22 24 9000 8500 8000 7500 7000 6500 6000 5500 5000 9500 Case 1 Case 2 10000

Subsidy System benefit Income

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Demonstration——Friendly Interactive System

  • f Supply and Demand (FISSD)

It is approved and supported by Ministry of Science and Technology of the People’s Republic of China.(2016-2020)

Large industrial customers: more than 1,000 enterprises. Residential customers: 110,000 houses and 22 aggregators Commercial customers: 250 malls, 300 hotels, 150

  • ffice buildings and so on.

Distributed generations: wind power and photovoltaic power Charging stations: covering 30,000 houses Interaction platform Energy management system Business model Two main objectives: (1) Peak-valley difference of loads decrease by 5.8%. (2) Comprehensive energy consumption of residential customers decrease by 5.5%.

Time (hour) Operating power (kW) 0 2 4 6 8 10 12 14 16 18 20 22 24 9000 8500 8000 7500 7000 6500 6000 5500 5000 9500 Case 1 Case 2 10000

Subsidy System benefit Income

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Demonstration——Friendly Interactive System

  • f Supply and Demand (FISSD)

It is approved and supported by Ministry of Science and Technology of the People’s Republic of China.(2016-2020)

Large industrial customers: more than 1,000 enterprises. Residential customers: 110,000 houses and 22 aggregators Commercial customers: 250 malls, 300 hotels, 150

  • ffice buildings and so on.

Distributed generations: wind power and photovoltaic power Charging stations: covering 30,000 houses Interaction platform Energy management system Business model Two main objectives: (1) Peak-valley difference of loads decrease by 5.8%. (2) Comprehensive energy consumption of residential customers decrease by 5.5%.

Time (hour) Operating power (kW) 0 2 4 6 8 10 12 14 16 18 20 22 24 9000 8500 8000 7500 7000 6500 6000 5500 5000 9500 Case 1 Case 2 10000

Subsidy System benefit Income

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CONTENTS

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Introduction

1

Pilot policies of demand response

2

Demonstration of friendly interactive grid

3

Conclusions and discussions

4

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Conclusions and discussions

  • Challenges:

– The future power system will be more fluctuating due to the high penetration of RES.

  • The pilot policy of demand response:

– The reduction of peak-valley difference can reach 18.47% and the average response capacity of residential customers can reach 590W.

  • Demonstration——Friendly

Interactive System

  • f

Supply and Demand (FISSD): – In order to do further study on DR, a demonstration project was implemented in Suzhou and Changzhou. – The FISSD will be one of the largest DR project in the world and make significant progress toward DR’s study. – The demand response will make greater contributions to the future power system.

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College of Electrical Engineering Zhejiang University

Thank you for your attention!