Elia Group Sa/nv · EURONEXT:ELI

Elia Group Sa/nv — Technical Presentation (February 2024)

70 slides from Elia Group Sa/nv's technical presentation, Feb 23, 2024

  1. Slide 1: Incentive on connection with Flexible access – 1st Workshop

    Incentive on connection with Flexible access – 1st Workshop Workshop 1 – 23/02/2024 23.02.2024 | Elia

  2. Slide 2: Agenda: Part I and Part II

    Part I 1. Context and Encountered Challenges 2. CREG Incentive and Feedback of Public Consultation on Flexible Access 3. Ongoing and Already Launched Actions Part II 4. Main Principles of Proposed Vision (Target Model) 5. Integration of Grid User Flexibility in Long Term Grid Planning 6. Temporary P

  3. Slide 3: 1. Context and encountered challenges

    1. Context and encountered challenges

  4. Slide 4: Why are Flexible Access becoming more relevant to facilitate the energy transition?

    Why are Flexible Access becoming more relevant to facilitate the energy transition ? Incentive on flexible access – Workshop 23.02.2024 4

  5. Slide 5: Clear ambitions…

    Clear ambitions… 2021 2022 2023 FIT FOR 55 REPowerEU Green Deal Industrial Plan Increased decarbonization More renewables More investments -55% Accelerated expansion of Anchoring Europe’s net zero renewable energy resources industry in 2030 (compared with 1990) & infrastructure 5

  6. Slide 6: Electrification of demand and integration of renewables

    The energy transition implies an important electrification of demand and integration of renewables Consumption Production +10TWh +20TWh Solar PV Onshore Wind Offshore Wind x2.2 x2.1 x2.5 +10TWh In 2032 In 2032 In 2032 Expected electricity consumption in Belgium Onshore wind Offshore wind Solar PV ca

  7. Slide 7: Elia must provide a robust and fit-for-purpose power grid

    In this Energy Transition context, Elia must provide a robust and fit-for-purpose power grid to Belgian society, striving for a techno-economical optimum for the whole society ❑ The Grid must be developed in order to meet the Belgian and European objectives of renewables integration, electrification

  8. Slide 8: Significant grid investments planned – zoom on Backbone

    Significant Grid investments are planned in order to enable market coupling, RES integration and electrification of demand – zoom on Backbone Green 220 kV Substations 380 kV On the road to a net zero society HVDC Expansion and integration Further development of Creation of hosting of the offshore gr

  9. Slide 9: Significant grid investments planned – zoom on Vertical Grid

    Significant Grid investments are planned in order to enable market coupling, RES integration and electrification of demand – zoom on Vertical Grid 1 2 3 4 5 6 Antwerpen Versterking Kempen ✓ ✓ ✓ Evolutie Antwerpen stad en haven ✓ ✓ ✓ ✓ Herstructurering 70kV ✓ ✓ Brussel / Bruxelles ✓ ✓ ✓ Hainaut Proje

  10. Slide 10: Increasing number of Grid Users' connection requests

    In the meantime, the energy transition continues to accelerate, leading to an increasing number of Grid Users’ connection requests The yearly number of ordered connection studies (orientation/detail) has significantly increased over the last years Evolution of ordered studies 90 80 70 Due to the hig

  11. Slide 11: Difference in lead time between grid infrastructure and new projects

    The difference in time required to develop new grid infrastructure and to develop new renewable or demand electrification projects constitutes an important challenge ❑ Electrification of demand or renewables projects : total lead time from 1 to 3 years ❑ Building new Grid Infrastructure : lead time

  12. Slide 12: Flexibility has an important role to play

    Given these challenges, flexibility has an important role to play Given the rapid increase in EOS/EDS (for RES, storage and demand), the importance of flexible connections – allowing Grid Users to connect before the realization of required grid reinforcements – will increase Considering the flexibil

  13. Slide 13: 2. CREG Incentive and Feedback of Public Consultation on Flexible Access

    2. CREG Incentive and Feedback of Public Consultation on Flexible Access

  14. Slide 14: CREG incentive on connection with flexible access

    CREG incentive on connection with flexible access ❑ Ongoing discussions with CREG on refining the scope and revised planning ❑ The incentive is composed of 3 main parts ➢ Reporting of Flexibility Activations ➢ Methodology for Client Connection Studies ➢ Vision of the role of Grid User Flexibility in

  15. Slide 15: Public Consultation on flexible access: Market Parties feedback

    Public Consultation on flexible access : Market Parties feedback Connection studies & Fundamental principles contracting Transparency & Predictability of Power Good investment planning to Limitations / More insight in Grid Study minimize the use of flexibility Discount on Grid Tariff Challenge and a

  16. Slide 16: There are both long-term and short-term needs

    There are both long-term and short-term needs This evolving context implies a need to review the approach and design related to flexible access ❑ Ambition for a long-term and future-proof Vision on Grid User Flexibility for Congestion Management (Target Model) ❑ Alignment on fundamental principles a

  17. Slide 17: 3. Ongoing and already launched actions

    3. Ongoing and already launched actions

  18. Slide 18: Elia has launched several initiatives

    To address these challenges, Elia has launched several initiatives What is ongoing ❑ GUFlex4CM project ❑ Ambitious CAPEX Plan ❑ Revision of EOS/EDS and Capacity Reservation processes What has already been done ❑ Public consultation on flexible access with current modalities* ❑ Hosting Capacity Map ❑

  19. Slide 19: Revision of EOS/EDS and Capacity reservation process

    Revision of EOS/EDS and Capacity reservation process

  20. Slide 20: Review of EOS/EDS and Capacity Reservation processes

    Review of EOS/EDS and Capacity Reservation processes Topic introduced during WG BG 07/12/23 and 26/01/24 A lot of synergies with discussions on flexible access: initiatives will be linked • Following same planning (see slide below) and approach: 1. Description of process in design note 2. Public con

  21. Slide 21: Hosting Capacity Map

    ria Hosting Capacity Map

  22. Slide 22: Hosting Capacity Map incentivizes targeting connection requests

    The Hosting Capacity Map aims at incentivizing the Grid Users to target their connection request where hosting capacity is available Hosting Capacity for load without flexibility - 2026 Hosting Capacity for load with 5% flexibility* - 2026 Hosting Capacity significantly increases with a limited amou

  23. Slide 23: Existing Gflex solution

    ria Existing Gflex solution

  24. Slide 24: Existing Gflex solution connects Grid Users in congested zones

    The existing Gflex solution enables to connect Grid Users in a zone where there is not enough hosting capacity ❑ Gflex solution was historically developed to manage congestion on the transmission grid (HV/MV transformers, upstream grid) due to local production (onshore wind and solar) connected in t

  25. Slide 25: Current Gflex product: Grid User perspective

    The current Gflex product: feedback from Grid Users (Public Consultation) Grid User perspective Grid User feedback indicates that : ➢ Insufficient view on the flexible volumes for the Grid Users – which makes it difficult to assess the viability of their Business Case: ➢ The absence of remuneration

  26. Slide 26: Current Gflex product: System Operation perspective

    The current Gflex product: feedback from Grid Users (Public Consultation) Grid User feedback indicates that: System Operation perspective ➢ This complexifies the operational processes. In an area where there is a GU with flexible access and GU with usual redispatching obligations, operators must mak

  27. Slide 27: 4. Main principles of proposed Vision (Target Model)

    4. Main principles of proposed Vision (Target Model)

  28. Slide 28: Goal of coming discussion

    Goal of coming discussion Present and discuss some design aspects of the proposed Target Model… … to ensure that the short-term actions will go in the right direction Incentive on flexible access – Workshop 23.02.2024 28

  29. Slide 29: Overall objective

    Overall objective A power system that is fit-for-purpose today, tomorrow and in the future for hosting generation and storage units and feeding demand facilities with reliability, affordability and sustainability as key drivers Long term grid planning Grid User connection process Striving for the so

  30. Slide 30: 5. Integration of Grid User Flexibility in Long Term Grid Planning

    5.Integration of Grid User Flexibility in Long Term Grid Planning

  31. Slide 31: Why integrate Grid Users flexibility in Long Term Grid Planning?

    Why to integrate Grid Users flexibility in Long Term Grid Planning ? ❑ Currently, the grid is developed in order to enable firm access to all Grid Users at all times (except non-structural congestions e.g. linked to maintenance/project works etc) ❑ New technologies and newly electrified appliances h

  32. Slide 32: Grid Development Plans aim at hosting expected Grid Users

    The Grid Development Plans aim at hosting the expected Grid Users and facilitating their required power flows ❑ Grid Development Plans are based on future power system scenarios taking into account the already known future Grid Users projects as well as additional volumes of renewables and electrifi

  33. Slide 33: Grid Development Plans: congestion and reinforcement

    The Grid Development Plans aim at hosting the expected Grid Users and facilitating their required power flows ❑ Grid Development Plans are based on future power system scenarios taking into account the already known future Grid Users projects as well as additional volumes of renewables and electrifi

  34. Slide 34: Grid Development Plans: stranded asset risk

    The Grid Development Plans aim at hosting the expected Grid Users and facilitating their required power flows ❑ Grid Development Plans are based on future power system scenarios taking into account the already known future Grid Users projects as well as additional volumes of renewables and electrifi

  35. Slide 35: GU Flexibility can optimize investments and societal cost

    GU Flexibility can contribute to optimizing the needed investments as well as the total cost and risks borne by society ❑ Considering remunerated Grid User flexibility in addition to grid reinforcements may – in some situations – enable to cut the tail of investments and therefore reduce the total c

  36. Slide 36: GU Flexibility: 4th cable justified from 300 MW

    GU Flexibility can contribute to optimizing the needed investments as well as the total cost and risks borne by society ❑ Considering remunerated Grid User flexibility in addition to grid reinforcements may – in some situations – enable to cut the tail of investments and therefore reduce the total c

  37. Slide 37: Limitations on the usage of flexibility

    In order to ensure a harmonious development of the power system, limitations on the usage of flexibility can be defined Grid investments are by default triggered when the expected usage of Grid User Flexibility is above predefined bounds How do you see those bounds ? ➢ What type of limitation ? (% t

  38. Slide 38: Conclusion Long Term Grid Planning: Cost-Benefits Analysis

    Conclusion Long Term Grid Planning: Cost-Benefits Analysis for Flexibility In Long Term Grid Planning, Cost-Benefits Analysis will be realized to compare Grid Reinforcements and Remuneration of Grid Users’ flexibility – within a limited range - as a complementary solution. To ensure a harmonious dev

  39. Slide 39: 6. Temporary period for earlier Grid User connection

    6. Temporary period for earlier Grid User connection

  40. Slide 40: Temporary Period Introduction

    Temporary Period Introduction The connection request of a Grid User… … may require a (planned or not identified nor planned) grid reinforcement project ❑ If agreed by the Grid User, the Grid Operator can propose a connection before the realization of the grid infrastructure identified in the context

  41. Slide 41: Temporary Period Use case

    Temporary Period Use case X-Border lines Existing production unit ❑ New connection request of a storage unit near a 380kV substation with an existing production unit and a X-border line ❑ Congestions occur in case of import when the existing unit produces and the storage injects • Grid reinforcement

  42. Slide 42: Use case – battery connected without temporary period

    Temporary Period Use case – what if the battery system is connected without temporary period? ❑ System Operator must take action in case of congestion. E.g : ➢ D-Bid on the storage; and/or ➢ D-Bid on the production unit; and/or ➢ Countertrading to reduce X-border imports; and ➢ Compensation bid to r

  43. Slide 43: Temporary Period: How to bring clarity to the Grid Users?

    Temporary Period How to bring clarity to the Grid Users? Grid users need as much clarity as possible in order to assess their business case, and this on 2 levels 1. Clarity on the use of flexibility during the temporary period ❑ Currently, a GU with a flexible contract receives a non-binding estimat

  44. Slide 44: Definition of the temporary period – when does it start?

    Temporary Period Definition of the temporary period - When does the temporary period start? Proposal ❑ At the date of signature of the connection contract Alternative ❑ At the commissioning of the client’s connection Justification ❑ The end of the temporary period depends on how much time is needed

  45. Slide 45: Definition of the temporary period – when does it end?

    Temporary Period Definition of the temporary period - When does the temporary period end? ❑ 3 cases can be distinguished 1. There is no project in the development plan allowing to remove the structural congestion 2. There is a project in the development plan allowing to remove the structural congest

  46. Slide 46: When does the temporary period end? Possibility 1

    Temporary Period Definition of the temporary period – When does the temporary period end? Possibility 1 ❑ The temporary period ends when the infrastructure project expected to solve the identified congestions is commissioned. An indicative, non-binding timing is provided to the client. ❑ In addition

  47. Slide 47: When does the temporary period end? Possibility 2

    Temporary Period Definition of the temporary period – When does the temporary period end? Possibility 2 ❑ The end of the temporary period is linked to the commissioning of the project. If not yet in the development plan, the temporary period is defined for an undetermined duration Justification ❑ Th

  48. Slide 48: Temporary Period: Summary

    Temporary Period : Summary The Temporary period can apply on the request of Grid Users in areas where not enough firm hosting capacity is available During the Temporary Period, the flexibility costs are borne by the concerned Grid Users Clarity should be given to the Grid Users related to the defini

  49. Slide 49: 7. Questions ?

    lia 7. Questions ?

  50. Slide 50: 8. Next steps

    lia 8. Next steps

  51. Slide 51: Next steps

    Next steps ❑ You can send your questions or feedback to guflex@elia.be by 08/03/2024 ❑ MoM will be sent by 15/03/2024 and a follow-up will be done during 22/03/2024 WG Belgian Grid ❑ Next workshop planned on the 26/03/2024 on Methodologies and Criteria for client connection studies Incentive on flex

  52. Slide 52: Thank you.

    Thank you.

  53. Slide 53: Appendix

    lia Appendix

  54. Slide 54: Grid Operation & Grid Planning concepts

    Grid Operation & Grid Planning concepts

  55. Slide 55: Limit of Grid Elements

    lia Limit of Grid Elements

  56. Slide 56: Permanent and temporary limits of Grid Elements

    Pre-read Permanent and temporary limits of Grid Elements ❑ Permanent admissible limits : loading (in A or MVA) that can be accepted by a Grid Element for an unlimited duration without any risk for the material ➢ For some types of Grid Elements (e.g. overhead lines), the permanent limits depend on th

  57. Slide 57: Grid Studies: analyzed situation and criteria

    Grid Studies : analyzed situation and criteria

  58. Slide 58: Grid Connection Studies – analyzed situations

    Pre-read Grid Connection Studies – analyzed situations The following grid situations are analyzed within the Grid Connection studies : ❑ N state : all the grid elements are available ➢ For each planned step of grid evolution, a new N state is studied ❑ N-1 state : with respect to N state, one grid e

  59. Slide 59: Practical case: study in North sea area

    Pre-read Practical case : study in North sea area Considered steps of the planned Grid evolution 1) Asis 2) With Ventilus (2028) 3) With Boucle du Hainaut (2030) 4) With MOG 2 (as of Boucle du Hainaut) Incentive on flexible access – Workshop 23.02.2024 59

  60. Slide 60: Operation limits for the analyzed states

    Pre-read Operation limits for the analyzed states The following technical planning criteria are respected for the different analyzed states if : ❑ Contingency list (N-1) defined in line with SOGL principles ❑ The voltage on each node remains between the operational limits ❑ The short-circuit current

  61. Slide 61: Actions for solving congestion

    Actions for solving congestion

  62. Slide 62: How to solve congestions?

    How to solve congestions ? Pre-read General philosophy : ❑ Preventive actions : in N state – to avoid unacceptable situations ➢ All Grid Elements are below their permanent limits ➢ All Grid Elements are below their temporary limits for each simulated N-1 situation ▪ Preventive action is needed if th

  63. Slide 63: Use Case

    lia Use Case

  64. Slide 64: Keep the grid N-1 safe

    Keep the grid N-1 safe Pre-read If outage, • All grid elements stay under 15min limits • N-1 safe again within 15 min. N situation Upstream Network Line B 65% 55% Line A R1 R2 80% R1 R2 64

  65. Slide 65: Keep the grid N-1 safe

    Keep the grid N-1 safe Pre-read If outage, • All grid elements stay under 15min limits • N-1 safe again within 15 min. N situation is safe Upstream Network Line B 65% 55% Line A 1 N-1 Analysis R1 R2 80% 1 – Security Analysis R1 N-1 safe if outage? R2 65

  66. Slide 66: Keep the grid N-1 safe

    Keep the grid N-1 safe Pre-read If outage, • All grid elements stay under 15min limits • N-1 safe again within 15 min. Charge on line “A” Upstream Network Line B N situation Line A 105% Limit 15 minutes Upstream Network Line B 65% Measurand If outage 55% Line A 1 N-1 Analysis 2? R2 Permanent limit R

  67. Slide 67: Keep the grid N-1 safe

    Keep the grid N-1 safe Pre-read If outage, • All grid elements stay under 15min limits • N-1 safe again within 15 min. Charge on line “B” Upstream Network 2? Line B Measurand If outage N situation 120% Line A Limit 15 minutes Upstream Network Line B 65% 55% Line A N-1 Analysis R2 Permanent limit R1

  68. Slide 68: Keep the grid N-1 safe

    Keep the grid N-1 safe Pre-read If outage, • All grid elements stay under 15min limits • N-1 safe again within 15 min. Charge on line “B” Upstream Network 2? Line B Measurand If outage N situation 120% Line A 3 Limit 15 minutes Upstream Network Line B 65% 55% Line A N-1 Analysis R2 Permanent limit R

  69. Slide 69: Keep the grid N-1 safe

    Keep the grid N-1 safe Pre-read If outage, • All grid elements stay under 15min limits • N-1 safe again within 15 min. Charge on line “B” Upstream Network 2? Line B Measurand If outage N situation 120% Line A 3 Limit 15 minutes Upstream Network Line B 65% 55% Line A N-1 Analysis R2 Permanent limit R

  70. Slide 70: Keep the grid N-1 safe

    Keep the grid N-1 safe Pre-read If outage, • All grid elements stay under 15min limits • N-1 safe again within 15 min. New N situation Upstream Network Line B 60% 49% Line A R1 R2 65% R1 R2 70

Elia Group — Technical Presentation (February 2024) on 6ix