INCREASE AS and value analysis methodology

Since the beginning of 2015 partners University of Ljubljana and Joanneum Research are working very hard on WP5 (Market mechanisms and regulatory framework for ancillary services).

The first report (D5.1 Report on common definition of Ancillary Services in the Transmission system and in the Distribution system) was submitted one month ago. This report provides definitions of Ancillary Services and a description of the analysis methodology and tool developed in INCREASE. This tool will be used to analyze the value provided by the INCREASE Ancillary Services (AS) via different business cases to the stakeholders.

It focuses on the four key INCREASE AS enabled by the developed INCREASE solutions: Voltage Control, Voltage Unbalance Mitigation, Current Congestion Management and provision of Reserve. The report describes the stakeholders, to which we also refer as actors due to their active role in the transactions, and their interrelations, including the (new) market players and the beneficiaries of AS – those providing and those using the AS. Most importantly the report gives a detailed insight in the core methods developed in WP5 of the INCREASE project, the Value Analysis Methodology and the models and tools that were created to apply it.

The Value Analysis Methodology designed in INCREASE is based on a Technical Analysis where the INCREASE control mechanism (based on the validated tool presented in INCREASE D3.4) is simulated in a typical distribution network, using Evaluation Scenarios. These scenarios cover the problem space in which MAS control operates, reflecting different operating stages of LV networks, e.g. with different penetrations rates of DRES and Demand Response (DR) or different seasons. The simulated outcomes of the MAS control strategies provide operating schedules of DRES- and DR-units and thus the physical properties of the four key INCREASE AS.

Based on the technical analysis an economic, environmental and operation security assessment is made for chosen business cases that enables a broader view on possible benefits to the society than classical cost-benefit assessment. This assessment is made with the Value Analysis Tool (VAT), a MATLAB based computing tool, created in INCREASE using Value Analysis scenarios defined in the project. These scenarios comprise a series of parameters that describe the assumptions used in our Value Analysis. Appropriate criteria and metrics including key performance indicators (KPIs) have been built into the VAT to quantify the benefits created via INCREASE solutions.

The figure below shows the INCREASE Value analysis methodology used.