Ancillary services

20 Pages·2015·1.56 MB·English

by  Jarry Gregory

Evolution of ancillary services regulation; opening the possibility for new
market players to participate in maintaining the system stability

Office franco-allemand, 3rd november 2015
Introduction : evolution of the electricity mix in France
Scenario 2030 « new mix » (installed capacity)
4% PV
15% PV
Source: Bilan prévisionnel RTE 2015
Introduction : evolution of the electricity mix in France
Scenario 2030 « new mix » (installed capacity)
4% PV
15% PV PV could be an important part
of the future mix and could
play an important role in
providing ancillary services
The part of power generating
facilities providing most
ancillary services (nuclear,
coal, hydro power plants)
should decrease in the new
electricity mix
Future regulation should
allow participation of RES to
provide ancillary services
Source: Bilan prévisionnel RTE 2015
Existing regulatory framework regarding ancillary
services in France : constructive capabilities
required
In France, the Orders (“Arrêtés”) of 23 April 2008 define constructive capabilities
for connection of new Power generating Facilities (PGF) :
The frequency and voltage control requirements are different for facilities connected to the
transmission or distribution network according to this table:

Technical Transmission network Distribution network

requirements (EHV, HV) (MV, LV)

(Ancillary services)

Active power capabilities Power Generating Fac ility (PGF) No capabilities required
(FCR, automatic FRR) with :

P > 40 MW for FCR*

P > 120 MW for aFRR*

Reactive power capabilities All PGF PGF with P > 250 kVA (MV)

[Q- = -0,35 Pmax ; Q+ = 0,32 Pmax] [Q- = -0,35 Pmax ; Q+ = 0,4 Pmax]

No capabilities required in LV

FCR : Frequency Containment Reserve EHV : Extra High Voltage MV : Medium Voltage
aFRR : automatic Frequency Restoration Reserve HV : High Voltage LV : Low Voltage
Existing regulatory framework regarding ancillary
services in France : rules for participation and
settlement
Before 2014, participation to ancillary services and settlement were defined by
contractual relationship between RTE and generators.

Article L.321-11 of Energy Code states that the terms and conditions for participation
and the rules for the settlement are
 based on objective and non-discriminatory criteria,
 developed and proposed by RTE
 and approved by CRE prior to their implementation.

Since 2014, RTE and CRE have cooperated to establish successive versions of rules
 Version 1 entered into force in January 2014
 Version 2 entered into force in July 2014
 Version 3 should enter into force in January 2016 (pending CRE’s approval)

The development of further sets of rules aims at improving the functioning of ancillary
services and minimizing their costs, for instance by :
 Increasing competition, allowing new participants to enter the market
 Optimising currents assets (OTC, dissymmetrical capacities)
 Allowing cross-border exchanges of reserves…
Sommaire
Ancillary services for frequency control

Ancillary services for voltage control

Conclusion

6
Ancillary services for frequency control in France
Synthetic view
Frequency Containment Automatic
Reserve Frequency Restoration Reserve
(« primary control ») (« secondary control »)

Ensure, through the joint Restoring the supply / demand balance
participation of all qualified facilities in the control area which the TSO is
of the European synchronous responsible for : cancel the deviations
continental plate, the immediate of cross-border exchange programs
Objective
restoration of the supply / demand with all other control areas compared to
balance by maintaining the the scheduled values ​​and restore the
frequency, following any hazard frequency to its setpoint value
affecting this balance
Geographical Activation < 30 seconds, Activation : few minutes,
scale European continental plate Control area France
~600 MW in France
Requirement Between 500 and 1000 MW in France
Sizing at European level: 3000 MW
Sizing according to demand : France
(France area
(loss of the two largest production
consumption + exports.
2014)
groups)
Mandatory Power generating facilities P > 40 MW
Power generating facilities P > 120 MW
participants connected to the TSO (except RES)
further provide a control range of +/-
provide a control band at +/- 2.5% of
(according to
4.5% of Pmax
Pmax
the rules)
7
CRE approves the terms and conditions to participate in
(frequency) ancillary services

Since 2014, the terms and conditions for participation and the rules for the settlement
have been submitted by RTE to CRE’s approval.

Currently in France, participation terms is based on a prescriptive system with a
regulated price.

 Mandatory participants* are required by RTE to provide a given amount of
symetric FCR and aFRR according to a pro rata system : the so-called
“prescription”. RTE compensate the mandatory participants at a regulated price.

 These mandatory participants can exchange their prescription and buy / sell
reserves to other participants (not necessarily mandatory but qualified to provide
ancillary services) through OTC trading.

 For instance, consumption units connected to the transmission network are not
obliged to participate but may be qualified to do so. They have been allowed
since July 2014 to access the market by providing ancillary services to mandatory
participants through OTC system.

8
* according to L. 342-5
RTE and CRE further improve the terms and conditions to
increase participation to (frequency) ancillary services

In addition to the mandatory participants to ancillary services (mainly Power
Generation Facilities or PGF connected to transmission network, see previous slide
3), the terms and conditions progressively open participation to other players :
Rules Welcoming the optional participation of :
Version 1 - PGF indirectly connected to the transmission
(approved by CRE on 28 network
Nov 2013, entered into - PGF directly connected to the distribution network
force on 1 Jan 2014)
Version 2 - Consumption units connected to the transmission
Both dispositions
(approved by CRE on 12 network
should allow /
June 2014, entered into
force on 1 July 2014) encourage PV
units to provide
Version 3 - PGF indirectly connected to the distribution network
(submitted by RTE on 17 - Consumption units connected to the distribution FCR and aFRR
Sep 2014, approval network
pending, expected on 26 - Dissymmetric capacities will be allowed to
Nov 2014)
participate from October 2016
9
These development should encourage the participation
of PV units

Allowing participation to PGF connected to distribution network as well as to
dissymmetrical capacities should enable PV units to provide ancillary services.

To address markets participants’ concerns, RTE proposes an optional participation for
dissymmetrical capacities. Indeed :
 TSOs’ requirements for FCR and aFRR remain symmetrical.
 Mandatory dissymmetrical participation may lead to high investments costs which should be
compared to the expected benefits.

The mechanism will work as follow:
 Mandatory prescription remain symmetrical
 Mandatory participants have the opportunity to schedule their contribution to FCR and aFRR
in a dissymmetrical way or to bilaterally exchange their prescription in a dissymmetrical way.

Qualified but not mandatory participant, who want to offer only dissymmetrical
reserves, such as PV or RES, should find an OTC counterpart by themselves.

In addition, further evolutions need to be prepared in the upcoming years to prepare
the implementation of the Guidelines on Electricity Balancing. 10