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Delegates are invited to meet and discuss with the poster presenters during the poster presentation sessions between 10:30-11:30 and 16:00-17:00 on Thursday, 19 November 2015.

Lead Session Chair:
Stephan Barth, ForWind - Center for Wind Energy Research, Germany
Thomas Maidonis WIP Renewable Energies, Germany
Co-authors:
Thomas Maidonis (1) F Michael Papapetrou (1) Pablo Frias Marin (2) Mercedes Valles Rodriguez (2) Fernando Nuno (3) Tomas Jezdinsky (3)
(1) WIP Renewable Energies, Munich, Germany (2) Institute for Research in Technology (IIT) & Electric Engineering Department - Universidad Pontificia Comillas, Madrid, Spain (3) European Copper Institute, Brussels, Belgium

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Presenter's biography

Biographies are supplied directly by presenters at EWEA 2015 and are published here unedited

Thomas Maidonis is an energy economist with post graduate studies in energy and environmental resource management. He is working as a project manager at WIP Renewable Energies on the coordination of the CrowdFundRES and IndustRE projects and has been involved in different EU-funded projects (Horizon 2020, Intelligent Energy Europe and FP7) dealing with a range of technical and non-technical energy related aspects. Prior to WIP, he worked at Goldwind's R&D department in China studying the grid integration of wind energy as well as with energy consultancies in different countries gaining valuable experience on project financing.


Poster

Poster Download poster (8.97 MB)

Abstract

Innovative business models making use of the flexibility of the industrial electricity demand for integrating wind energy

Introduction

Wind energy has some drawbacks for its integration in power systems and markets like variability, restricted predictability and firmness that impose extra requirements and costs. The flexibility of the industrial electricity demand has been identified as a potential that - through innovative business models - can facilitate the integration of variable renewable energy, while reducing electricity costs for the industry. As a starting point, a basic outline of the different possible business models for supplying variable renewable electricity to industrial users with a potential for flexibility in their demand will be provided. Then the way the current market and regulatory framework affects the models’ applicability in the industrial sector of Belgium, France, Germany, Italy, Spain and the UK will be assessed.

Approach

This work is conducted within the IndustRE EU-funded project that aims to create win-win situations between the European industry and the renewable energy generators. The renewable energy generators can minimise balancing costs and optimise their generation profile and resulting overall profit. The industry can benefit by using in various ways the value their flexibility has for the power system. Work is separated in three phases: First, business models that bring benefits to all involved parties are outlined. In the second phase of the project, tools and methodologies are developed to bring the business models one step closer to implementation and case studies are selected. During the last phase of the project the benefits for all involved actors are quantified and improvements in the market and regulatory framework are proposed and promoted.

Main body of abstract

As a starting point, all possible models have been identified and classified irrespective of whether their benefits are currently rewarded in the different markets or not. These are:
1. Wind energy generation on the site of industrial units - The electricity demand flexibility of the industry is used for maximising the share of its overall energy demand covered by the on-site wind production and to minimise the wind energy that is fed to the grid, while controlling the timing and profile of the outgoing electricity. The wind energy facility can be owned either by the industry or by a third party.
2. Commercial arrangement between the industry and an off-site wind energy producer - This can range from a simple power purchase agreement to arrangements that foresee pooling their resources and flexibility for common benefits from participation in day-ahead and balancing markets and offering regulation capacity to TSOs.
3. Use of the industry’s flexible demand for financial benefit without direct cooperation with wind energy. The additional flexibility offered to the power system has still the potential to benefit the wind energy plants in a well-designed market. The flexibility can be used in various ways depending on its characteristics and on the market rules.

Based on these models, the project screens the market and regulatory framework and assesses how it affects the models’ applicability and feasibility in 5 industrial sectors (Chemicals, non-ferrous metals, cold storage, steel, and water treatment) and 6 target countries (Belgium, France, Germany, Italy, Spain and UK). More specifically, the following three subjects are addressed:
1. The main technical and market characteristics of the power system in each target country
2. The regulatory treatment of variable renewable energy production
3. The design of network charges for industrial consumers
4. The feasibility of the business models identified under the current market and regulatory frameworks

Conclusion

The abstract contributes to the discussion about what the role of flexible industrial demand in accommodating higher shares of variable renewable energy can be. A first assessment of the applicability of business models that could create win-win situations between the European industry and renewable energy generators will be presented based on the present regulatory and market frameworks in these countries.


Learning objectives
The analysis provides indications on possible adaptations of the business models and/or changes in the regulatory and market frameworks that could allow these business models work more effectively, while respecting the main energy policy principles of each country.