2017年-CEPS欧洲政策研究中心_Improving_the_Market_for_Flexibility_in_the_Electricity_Sector_42页_1mb

Summary of "Improving the Market for Flexibility in the Electricity Sector"

Core Content

This report, authored by the CEPS Energy Climate House Task Force, addresses the increasing need for flexibility in the EU electricity sector due to the rising share of variable renewable energy sources and the electrification of other sectors. The task force emphasizes the importance of market design and integration to support flexibility, ensuring cost-effective and efficient energy systems.

Main Viewpoints

1. Flexibility Needs and Sources

• Flexibility Needs: The EU's decarbonisation goals and increased electrification will require greater flexibility in the electricity sector.
• Sources of Flexibility: Flexibility can be achieved through flexible generation, consumption, and storage technologies, as well as grid reinforcement and cross-border integration.

2. Market Design for Flexibility

• Short-term and Balancing Markets: These are the most cost-effective sources of flexibility. Efficient EU-wide market integration is essential.
• Intraday and Balancing Markets: The report recommends swift implementation of continuous trading in the intraday market and harmonised intraday auctions to improve implicit capacity allocation.
• Market Coupling: Continued efforts to integrate day-ahead markets across the EU, especially with Central and Eastern Europe, are crucial.
• Balancing Mechanisms: Balancing energy auctions should be open to pre-qualified market participants, and marginal pricing should be used to ensure fair compensation for fallback procedures.

3. Grid Reinforcement and Congestion Management

• Grid Challenges: Grid congestion is expected to increase due to the shift from conventional power plants to renewable sources.
• Reinforcement and Capacity Allocation: A market-based price for interconnection capacity should be introduced, and capacity allocation mechanisms should be optimised to support intraday and balancing markets.
• Public Acceptance: Public resistance to new grid infrastructure is a key barrier that needs to be addressed through policy support and cost-effective solutions.

4. Aggregation

• Role of Aggregators: Aggregators are becoming more important in enabling flexible consumption and resources.
• Market Access and Standards: The market design should allow for non-discriminatory participation of independent aggregators. Common standards and protocols should be developed to support data exchange and interoperability.

5. Priority Dispatch

• Renewable Integration: Priority dispatch should be phased out in favor of market-based curtailment and redispatch rules, provided fair compensation is ensured for fallback procedures.
• EU-Level Guidelines: A prescriptive EU guideline should ensure that all benefits foregone due to curtailment are compensated, and that renewables are not disadvantaged.

6. Role of DSOs

• Decentralised Flexibility: DSOs face new challenges due to decentralised generation and flexibility provision.
• Data Exchange Mechanisms: A mechanism for data exchange between DSOs, TSOs, and decentralised market participants should be developed to manage electricity flows and enable efficient use of distributed resources.

7. Sectoral Integration

• Cross-Sectoral Benefits: Integration of the heating, electricity, and transport sectors can enhance flexibility, decarbonisation, and security of supply.
• Infrastructure Planning: Long-term cross-sectoral energy flows and infrastructure planning should be institutionalised, starting with electricity, heating, and gas systems.

Key Recommendations

• Harmonise Market Designs: The European Commission should work towards harmonising national short-term and balancing market designs, including swift implementation of continuous trading and common gate closure times.
• Improve Intraday and Balancing Markets: EU-wide, harmonised intraday auctions and marginal pricing should be introduced to enhance flexibility and efficiency.
• Optimise Grid Reinforcement: Grid reinforcement should be prioritised in areas with high cross-zonal price differences and congestion costs, with support from ENTSO-E and EU policies.
• Facilitate Aggregators: Independent aggregators should be allowed to participate in the market on a non-discriminatory basis, with EU-level rules ensuring a level playing field.
• Phase Out Priority Dispatch: Priority dispatch should be phased out for new installations, with market-based curtailment and fair compensation for fallback procedures.
• Enhance DSO-DSO and DSO-TSO Coordination: A data exchange mechanism between DSOs, TSOs, and market participants should be developed to manage distributed flexibility.
• Promote Sectoral Integration: Cross-sectoral infrastructure planning should be integrated into National Energy and Climate Plans, and common standards for data exchange and interoperability should be developed.

Conclusion

The report outlines a comprehensive approach to improving flexibility in the EU electricity sector, focusing on market design, grid management, and sectoral integration. It highlights the need for harmonisation, innovation, and policy support to ensure a resilient, low-carbon, and efficient energy system.