This research presents a case study exploring the potential for demand side flexibility at a cluster of university buildings. The study investigates the potential of a collection of various electrical devices, excluding heating and cooling systems. With increasing penetration of renewable electricity sources and the phasing out of dispatchable fossil sources, matching grid generation with grid demand will become difficult using traditional grid management methods alone. Additionally, grid congestion is a pressing problem. Demand side management in buildings may contribute to a solution to these problems. Currently demand response is, however, not yet exploited at scale. In part, this is because it is unclear how this flexibility can be translated into successful business models, or whether this is possible under the current market regime. This research gives insight into the potential value of energy demand flexibility in reducing energy costs and increasing the match between electricity demand and purchased renewable electricity. An inventory is made of on-site electrical devices that offer load flexibility and the magnitude and duration of load shifting is estimated for each group of devices. A demand response simulation model is then developed that represents the complete collection of flexible devices. This model, addresses demand response as a ‘distribute candy’ problem and finds the optimal time-of-use for shiftable electricity demand whilst respecting the flexibility constraints of the electrical devices. The value of demand flexibility at the building cluster is then assessed using this simulation model, measured electricity consumption, and data regarding the availability of purchased renewables and day-ahead spot prices. This research concludes that coordinated demand response of large variety of devices at the building cluster level can improve energy matching by 0.6-1.5% and reduce spot market energy cost by 0.4-3.2%.
In this report, the details of an investigation into the eect of the low induction wind turbines on the Levelised Cost of Electricity (LCoE) in a 1GW oshore wind farm is outlined. The 10 MW INNWIND.EU conventional wind turbine and its low induction variant, the 10 MW AVATAR wind turbine, are considered in a variety of 10x10 layout configurations. The Annual Energy Production (AEP) and cost of electrical infrastructure were determined using two in-house ECN software tools, namely FarmFlow and EEFarm II. Combining this information with a generalised cost model, the LCoE from these layouts were determined. The optimum LCoE for the AVATAR wind farm was determined to be 92.15 e/MWh while for the INNWIND.EU wind farm it was 93.85 e/MWh. Although the low induction wind farm oered a marginally lower LCoE, it should not be considered as definitive due to simple nature of the cost model used. The results do indicate that the AVATAR wind farms require less space to achieve this similar cost performace, with a higher optimal wind farm power density (WFPD) of 3.7 MW/km2 compared to 3 MW/km2 for the INNWIND.EU based wind farm.
The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.
