11-Pump Stroge Hydro

Institute for Electricity Economics and Energy Innovations
Pump-Storage Hydro Power Plants

Pump-
in the European Electricity Market
Presentation for CGNPC

at Andritz headquarter
Graz, 27th Oct. 2010
Christoph Huber, Christoph Gutschi

Graz University of Technology
Huber, Gutschi
Professor Horst Cerjak, 19.12.2005 27th Oct. 2010 Andritz headquarter
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Brief Introduction of the Institute

General
– Foundet 2000
– Interdisciplinary Approach
Research
– ATLANTIS model of the european electricty system
– Energy Conception
– Public Interest
– Energy Psychology
Teaching
– Electrical Engineering,
– Industrial Engineer
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The Team
Udo Bachhiesl: RES, regulation
Christoph Gutschi: project management, thermal power,
business models,
Christoph Huber: grid and load flow, hydro power,
algorithms
Alexander Jagl: programming, database development
Gernot Nischler: fuel prices, NTCs, phase shifting
Heinz Stigler: project initiator, supervisor
Wilhelm Süßenbacher: market development
and many more
100 % self-financed by Graz University of Technology
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Content
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Content
• Electricity Market in Europe
• Overview of pump storage power plants in Europe
• Key Properties of pump storage power plants
• Tasks of pump storage power plants in Europe
• Market participation of pump storage power plants
• Scenarios for the development of the electricity
economy in continental Europe
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Overview of the
European Electricity Market
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Market Liberalization in Europe

• 1996 First EU-Guideline to establish a common
market for electricity
• Stepwise market opening
• Legal unbundling, Competition in Generation, Trade and Reselling
• 2003 Second EU-Guideline to accelerate the
European market integration
• Full liberalization June 2007
• Establishment of national regulators
• Transmission and distribution tariffs
• 2009 Third guideline for the European
electricity market
• Transmission system Unbundling
• Promotion of regional cooperation
• Indepedent Regulators
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Transmission Unbundling in Europe
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Market Model (Standard in Europe)
Regulated
Monopoly
Government,
Regulator:
Regulated tariff
for transmission
and distribution COMPETITION
services
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Market Model
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Congestions in European Transmisison

System
400 kV
220 kV
110-150 kV or DC
Commissioning after 2006
Congestions,
Bottlenecks
IEE/TU Graz
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regional markets with different market prices

for electric energy through congestion
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Overview of pump storage

generation in Europe
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Development of installed PSPP in Europe
Market Liberalization
Green Movement
Firm Projects
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Planned, projected and powerplants under

construction in continental Europe
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Pump Storage Power Plants by Country
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Power plants und construction

and planned PSPP
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Key Properties of
Pump Storage Power Plants
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Main operation modes of PSPP
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Energetic Efficiency of PSPP
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Innovative PSPP System Conceptions (1)

Ternary system with hydraulic short cuircuit
Source: Illwerke
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Innovative PSPP System Conceptions (2)

Reversible Pumpturbine with converter fed
Motor-Generator
Source: VDE
Source: Verbund
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Advantages of different Configurations

MG
Configuration P MG T
PT
Investment costs
Space required
Efficiency
Installation depth
Transition time P T/T P
Hydraulic short circuit
Head
Operation costs
Technical risk
Maintainance
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Typical Transition Times between

operation modes in seconds
Ternary Configuration Reversible Pumpturbine
St…..IDLE
TU…TURBINE OPERATION
PU…PUMP OPERATION
Source:Heninger,
S…...STANDBY Spitzer, E&I 2009
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Tasks of Pump Storage

Powerplants in Europe
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Tasks fulfilled by pump storage power plants

in Europe
• Generation shifting from summer to winter (eg.
Switzerland)
• Annual Peak Load Coverage
• Storage of wind generation
• Providing ancillary services
• “Black-Start” Capabilities
• Very fast outage Reserve for large thermal or nuclear Units
• Control Power (Frequency Control)
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Generation Shifting from Summer to Winter (1)

• In Countries with alpine regions the runoff in Rivers
reaches its maximum in summer
Austrian Runoff River Produktion in TWh
Source: Schüppel,
IEE-TUgraz
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Generation Shifting from Summer to Winter (1)

• The Maximum of demand is in Winter
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Providing contribution to peak load Coverage
Austria:
Wednesday 21st
January 2009
Source: e-control
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Storage and Backup of Wind Power

Wind Power is the main driver for new PSPP
Source: EWEA
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Concentration of Wind Generation
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Flows in the Transmission Grid
Strong Wind Situation
Location of Majority of
PSPP
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Strong wind causes congestions
Source: EWIS, Vattenfall
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Impact of Wind Generation on Power Prices
Typically
Strong Wind
Generation
Prices are very low, e.g. it is cheaper to sell electricty at very

low prices than to stop and star a powerplant e.g nuclear
power plants Source: RWE,
Kleinkorte
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Impact of Wind Generation on Power Prices

Fluctuating
Generation from Fluctuating
Price renewables shifts Power Demand Demand
€/MWh merit order
e.g. strong wind
generation: MCP
(market clearing price)
in the region of coal
power plants Very low prices in cases
of strong wind generation
and low power demand
MCP
Oil,
Wind Hydro PV Natural
Gas
CCGT
CO- Coal
Nuclear Gen
Power
Fluctuating MW
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Impacts of high wind generation

• Strong Wind leads to low energy prices at power
exchanges
• Pump Storage Powerplants profit from low power
prices -> Pumping
• Wind located in north of Germany and near the
Atlantic, and North Sea
• Majority of PSPP is located in the alps
• Geographic Locations leads to high Power Flows in
the transmission grid -> Bottleneck
• Wind generation shows steep gradients in power
variations -> back up needed
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PSPP providing Control Power

• Pump storage power plants show best properties to
supply control power
Frequency after a 1300 MW Outage
1300 MW Outage
Frequency
Primary Control
Secondary Control
time Source: Weber et al,

EW JG 96, Issue 4
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PSPP providing Control Power

• Pump storage power plants show best properties to
supply control power
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Market participation of pump

storage power plants
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Merit Order Duration Curve

of conventional PP
Power
Generation of PSPP
Load Residual Load

= Load - Windpower
Pumping of PSPP
Market decreasing increasing Hours per Week

Price price price (Month)
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Market segments
• Energy markets
• Earnings from price differences
• Control power markets
• Primary Control Power Market (not in Europe)
• Secondary Control Power Market
• Tertiary Control Energy Market
• Other Ancilliary services markets
• Black Start Capabilities
• Congestion Managment Markets
• Reactiv Power Markets
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Market Participation on Energy (Spot) Market
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Market Price Duration Curve

(hourly Prices sorted descending)
Duration (hours)
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Market Influence due PSPP operation

Operation of PSPP influences Market Prices because PSPP is additional and cheaper generation than the
replaced conventional Plants
Operation of Pumps raises market Prices because of additional Demand which has to be covered by
additional Powerplants
of conventional PP
Power
Generation of PSPP
Load Residual Load

= Load - Windpower
Pumping of PSPP
Market decreasing increasing Hours per Week

Price price price (Month)
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Influence of PSPP Generation to market prices under the unit comittment with
respect to minimize overall variable generation costs:
Optimum for market operator (regulator, consumers)
= minimum (variable) costs of conventional generation (over the whole period)
in some cases: Profit for PSPP operator = 0 !!!

of conventional PP
Power
Generation of PSPP
Load Residual Load
Pumping of PSPP
Market Low price difference Hours per Week

Price deter mined by PSPP efficiency (Month)
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Influence of PSPP Generation on market prices under the regime of profit maximisation of
Individual PSPP Generators:
Profit optimized operation of PSPP
Profit for PSPP operator = Max!
Profit = peak price * generated energy – offpeak price * pumped energy = max!
Withdraw of generation capacity to influence prices is possible.

of conventional PP
Power
Generation of PSPP
Load Residual Load
Pumping of PSPP
Market High price difference Hours per Week

Price due to optimization of PSPP operation (Month)
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Operation under real conditions

(Influences of hydrology, system stability, markets, technical limits, …)
=> range of price differences between peak and off-peak periods

of conventional PP
Power
Generation of PSPP
Load Residual Load
Pumping of PSPP
Market real price differences Hours per Week

Price (Month)
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Example for Secondary Control Power Market

Conception in Germany (1)
Transmission System Operator
requires 580 MW Secondary Control Reserve
In germany secondary Control market is
organized as “pay as bid” market.
Primary and secondary Control Power is asked
since 2007 at monthly time intervalls
Example with 4 Powerplants:

Bid Price / month Accepted bids costs/revenue
per month
Power Plant A 180 MW 10 €/kW 180 MW 1.800.000 €
Power Plant B 100 MW 12 €/kW 100 MW 1.200.000 €
Power Plant C 200 MW 18 €/kW 200 MW 3.600.000 €
Power Plant D 300 MW 20 €/kW 100 MW 2.000.000 €
Sum: 580 MW 8.600.000 €

The bids are arranged by ascending price,
in the example the most expensive bid is
accepted partly.
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Example for Secondary Control Power Market

Conception in Germany (2)
Each bid in the secondary control power In addition to the provided control power price
market has two components: the power plants get an energy price payed
The price for control power in €/kW and for delivered energy in cases of needed
the price for energy delivered in €/MWh secondary control power.
when secondary control power is needed.
Price / month pe [€/MWh]
Power Plant A 50 €/MWh 90 €/MWh

Max price 78 €/MWh
Power Plant C 65 €/MWh
50 €/MWh PP B
Power Plant D 78 €/MWh Power Plant C
PP D
Power Plant A
Power Plant B 90 €/MWh
P[MW]
580 MW
Maximum Dispatch
The clearing of dispatched secondary control during the month e.g. 440 MW
reserve follows the “pay as bid” rule.
So the maximum price for delivered control
power (energy) is determined by the maximum
control power dispatch.
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Results Primary Control Power Market

Germany January 2009
Jänner 2009
25000
price for
Leistungspreis demand
Nachfrage
reserve
per Month]
€/MW/Monat
/MW/Monat
20000
/MW
in[€/MW
15000
control reserve
Leistungspreis
10000
5000
Primary
0
0 50 100 150 200 250 300 350 400 450 500 550 600 650 700
Bids [MW]in MW
Angebotsmenge
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Results Secondary Control Power Market

Germany
Merit Order: January 2009_Off Peak Merit Order: January 2009_Peak
(20:00-08:00) (08:00-20:00)
10000 1000 10000 1000

negative Secundary Control Reserve positive SCR negative SRL
negative Secundar Control Reserve positiveSCR
positive SRL
8000 800 8000 800

Capacity fee €/MW/month
/MW/month
Capacity fee €/MW/month

/MW/month
Capacity fee
6000 600 6000 600
Energy price
Energy price €/MWh

/MWh
Energy price €/MWh
/MWh
Demand
4000 400 4000 400
2000 200 2000 200
0 0 0 0
Capacity fee
-2000 Energy price -200 -2000 -200
Demand
-4000 -400 -4000 -400
-4000 -3000 -2000 -1000 0 1000 2000 3000 4000 -4000 -3000 -2000 -1000 0 1000 2000 3000 4000
Capacity offered in MW Capacity offered in MW
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Vielen Dank für Ihre Aufmerksamkeit!
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Institute for Electricity Economics and Energy Innovations

Pump-Storage Hydro Power Plants

Presentation for CGNPC

Christoph Huber, Christoph Gutschi

Brief Introduction of the Institute

100 % self-financed by Graz University of Technology

Market Liberalization in Europe

Transmission Unbundling in Europe

Market Model (Standard in Europe)

Congestions in European Transmisison

regional markets with different market prices

Overview of pump storage

Development of installed PSPP in Europe

Planned, projected and powerplants under

Pump Storage Power Plants by Country

Power plants und construction

Main operation modes of PSPP

Energetic Efficiency of PSPP

Innovative PSPP System Conceptions (1)

Innovative PSPP System Conceptions (2)

Advantages of different Configurations

Transition time P T/T P

Hydraulic short circuit

Typical Transition Times between

Tasks of Pump Storage

Tasks fulfilled by pump storage power plants

Generation Shifting from Summer to Winter (1)

Generation Shifting from Summer to Winter (1)

Providing contribution to peak load Coverage

Storage and Backup of Wind Power

Concentration of Wind Generation

Flows in the Transmission Grid

Strong Wind Situation

Strong wind causes congestions

Source: EWIS, Vattenfall

Impact of Wind Generation on Power Prices

Prices are very low, e.g. it is cheaper to sell electricty at very

Impact of Wind Generation on Power Prices

Impacts of high wind generation

PSPP providing Control Power

time Source: Weber et al,

PSPP providing Control Power

Market participation of pump

Merit Order Duration Curve

Load Residual Load

Market decreasing increasing Hours per Week

Market Participation on Energy (Spot) Market

Market Price Duration Curve

Market Influence due PSPP operation

Load Residual Load

Market decreasing increasing Hours per Week

Merit Order Duration Curve

Load Residual Load

Market Low price difference Hours per Week

Merit Order Duration Curve

Load Residual Load

Market High price difference Hours per Week

Operation under real conditions

Merit Order Duration Curve

Load Residual Load

Market real price differences Hours per Week

Example for Secondary Control Power Market

Example with 4 Powerplants: