Lecture 8 – Energy Hubs and Aggregation Flashcards

1
Q

What is an energy hub?

A

The Energy Hub (EH) concept is a promising option for optimal management of MES and achieving a comprehensive model for sustainable energy systems. It is the place where the production, conversion, storage and consumption of different energy carriers takes place.

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2
Q

What is a Smart energy hub (SEH)?

A

EH located in a smart grid that is equipped with smart meters for both electricity and natural gas networks using appropriate communication infrastructures.

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3
Q

Why is the optimal performance of multi-energy systems (MES) good?

A

• Optimal performance of multi-energy systems (MES) can lead to technical, economic, and environmental advantages
− Higher system reliability
− Lower operating costs, fuel consumption, and emissions of the system
• Successful performance requires an integrated management framework that can manage the various components of the system optimally

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4
Q

In what ways can energy hubs be a main part of future energy networks?

A

− Can provides a great opportunity for energy production, conversion and storage in such coupled infrastructures for system planners, operators and prosumers to move towards more energy-efficient and flexible systems
− Can be seen as local concentrated set of energy infrastructure
− Can be implemented in different dimensional range from a single household up to an entire city model
− Integrating different energy carriers in an energy hub helps system operator to maximize social welfare in a greater optimization space
− Can enable energy users to flexibly switch the energy sources with accordance to different energy prices
− Converting different energy carriers to other forms provide accumulation of larger amount of renewable energy and reuse of them in the future
− Total operational costs can be substantially reduced and a large amount of investments costs could be saved

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5
Q

What are the main functions of energy hubs?

A

• Integration of various energy sources: by combining different energy inputs like solar, wind, biomass, natural gas, and electricity
• Energy conversion: means converting one form of energy to another, for instance, using natural gas to generate electricity or heat
• Energy storage: energy can be store in different forms (e.g., batteries for electricity, thermal storage for heat) at input and output to ensure a reliable supply
• Energy management: the hub should optimize the use of available energy resources to meet demand efficiently and sustainably, often through advanced control and monitoring systems
• Distribution and supply: the effective and efficient distribution of energy to various end-users, which could include residential, commercial, and industrial sectors should be ensure

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6
Q

What is the problem related to resources in conventional energy systems?

A

Significant loss of primary energy in conventional energy systems, due to:
− The low efficiency of energy production from thermal power plants
− Losses related to transmission and distribution of energy in the hierarchical structures

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7
Q

How can EH help sole the problem related to resources?

A

EH models requiring moving towards the increased use of sustainable and clean energy sources, such as renewables, especially in the form of distributed energy resources (DER)

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8
Q

Why are DERs important in EH to solve issues regarding resources?

A

• DERs as power generation systems near the consumption site, result in lower energy costs, reduced transmission and distribution losses and higher energy efficiency.
• DERs with the ability of using different technologies such as micro gas turbines, and renewable technologies

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9
Q

How are DERs used in relation to conversion and transmission?

A

DER (e.g., electric machines, gas turbines, internal combustion engines, fuel cells, thermo-electric converters, pumps, transformers, inverters, and heat exchangers) are used to modify the input carriers and getting them to a quality and quantity level and mode that is usable in the output.

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10
Q

What are the possible types of input to output connections in EH models?

A

− Direct connections: typically used to convey an energy carrier to the output without conversion or change in its quality.
− Conversions: converters are used to convert energy carriers to other types for use in the output.

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11
Q

In what sectors are energy hubs applied?

A
  • residential
  • commercial
  • industrial
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12
Q

Why are energy hubs needed in the residential sector?

A

• Consumption of a significant part of the produced energy in each country
• Considerable energy losses due to:
≡ Extensive distribution and long transmission networks
≡ Poor management of consumption by consumers
≡ The lack of controllable residential loads and low efficiency of the equipment

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13
Q

What are the solutions to the problems with the residential sector?

A

• Raising energy prices due to the resource constraints, increasing energy demand, and markets deregulation – need for increasing energy efficiency
• Possible increase of energy efficiency – Home energy management system (HEMS) as solution

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14
Q

Why are energy hubs used in the commercial sector?

A

• Operational optimization of CHP units in the commercial buildings
• Efficiency improvements such as successful participation in the DSM programs critical for efficient energy consumption and environmental impact reduction:
≡ Technological efforts such as energy audits
≡ The culture and behavioral training of the occupier
≡ Building energy management system (BEMS)
• Modeling and realizing BEMS in the commercial sector

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15
Q

Why are energy hubs used in the industrial sector?

A

• Largest primary energy consumer
• Possible efficiency improvements:
≡ Technical and technological improvements
≡ Policy making and behavioral training: government policies to encouraging industry
owners to improve their efficiency
≡ Industry Energy Management System (IEMS): integrating management to determine the energy consumption when and where needed
≡ Benefiting from energy-saving methods such as CHP, waste heat recovery, DSM participation, and integration of RES

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16
Q

Who are Aggregators?

A

Aggregators can be defined in an overarching way as companies acting as intermediaries between electricity end-users, DER providers and power system players, aiming to exploit the services associated with flexibility management

17
Q

What are the types of aggregators?

A

− Demand aggregators: negotiate more advantageous contracts with retailers on behalf of a large set of consumers by making the most of the scale effect
− Load aggregators: gather the load flexibility of consumers of different types, namely residential sector
− Production aggregators: group small generators as virtual power plants (VPPs)

18
Q

What do aggregators do?

A

• The aggregator employs optimization models and methods to make a reasonable management of flexible energy resources to address different objectives
• Participation of aggregators in the electricity market, contributing to increased competition and liquidity from a market perspective
• Aggregators as a response to the pursuit of energy flexibility in the context of prosumer empowerment

19
Q

What are the services provided by aggregators?

A

• System operation
• Generation
• Energy retailing
• Distribution
• Transmission
• BRP
• Load management

20
Q

What is Flexibility value chain?

A

“Flexibility value chain” as a comprehensive overview of existing and future flexibility services offered by an aggregator

21
Q

What is the flexibility value chain distinguished between?

A

Implicit demand-side flexibility (price based) and Explicit demand-side flexibility (incentive based)

22
Q

What are the different barriers for aggregators?

A

Regulatory
Technical
Market
Social

23
Q

What comes under regulatory barriers?

A

• New policy frameworks necessary to eliminate regulatory barriers, including the ones related to the relationships between independent aggregators and suppliers
• Lack of harmonized balancing markets and products in European countries
• Lack of standards for settling energy imbalances between consumers / prosumers (or their aggregator) and the suppliers
• Lack of standards for sub-metering behind the consumer’s connection pointing to support the settlement process between collaborating market parties

24
Q

What comes under technical barriers?

A

• Aggregators can help the system operators to manage the co-existence of consumers and generators in the same markets
• Technical requirements for participating in balancing markets, affecting the potential aggregator’s profit, namely the minimum bid size and the symmetry of the offer
• Aggregators can also use the flexibility gathered to take advantage of price differences in electricity wholesale and retail markets (arbitrage), and to provide over-the-counter (OTC) services to other market parties

25
Q

What comes under market barriers?

A

• The time period between bidding and activation of automatic secondary control (lead time)
• The bids for the provision of automatic secondary control require resources that are symmetric for upward and downward capacity
• The minimum bid sizes for the provision of automatic secondary control and manual secondary control may be a market entry barrier
• The limited number of available options in terms of differentiated components in the electricity distribution tariff
• Lack of targets and/or incentive schemes for enhancing hosting capacity

26
Q

What comes under social barriers?

A

• The low acceptance of smart meters by consumers
• Lack of trust between the DR provider (company) and the buyer (e.g., demand response aggregator) which may be jeopardized in several dimensions