Our Latest Webinar: Using Operating Envelopes to Ensure Network Integrity: From Concept to Reality (Slides)
Australia has almost 1 in 4 houses with solar photovoltaic (PV) systems and more than 100,000 residential batteries. These technologies, known as Distributed Energy Resources (DERs), are also creating opportunities for their owners to provide services to the Australian Energy Market Operator (AEMO) through aggregators. However, as the volume of DER providing services increases, it is important to ensure the integrity of the poles and wires that houses are connected to.
Project EDGE is a world-first project that brings together the spectrum of relevant stakeholders across the electricity value chain: customers, DER owners, aggregators, distributors, the system/market operator and researchers. Several innovations will be demonstrated through trials that will test operating envelopes and the trading of local services. This is crucial to understand the complexity, interactions and challenges that distribution companies (and the electricity sector) will face globally as they continue to accommodate the widespread adoption of DER . Project EDGE will also inform ongoing efforts on future electricity market design, particularly so-called two-sided markets.
A key advantage of using operating envelopes is that it allows distribution companies to ensure network integrity without having direct control of DERs or the aggregator. This makes better use of existing infrastructure and increases the efficiency of the overall electricity value chain. Ultimately, it should help to reduce electricity costs for consumers, particularly as more and more DERs are being installed across Australia.
Project EDGE was awarded funding in 2020 by the Australian Renewable Energy Agency (ARENA) and is a collaboration involving AusNet Services, Mondo, the Australian Energy Market Operator (AEMO) and the University of Melbourne. Our part is a 2.5-year project which runs from Oct 2020 to Apr 2023 and involves the development of the algorithms for the operating envelopes and the service co-optimisation.
What are Operating Envelopes?
Operating envelopes are time-varying export or import limits calculated by distribution companies (who manage the poles and wires), in real time or in advance, at the connection point of the customer (where the meter is). This information is then given to aggregators who must adhere to it when managing their DER portfolios. While operating envelopes can ensure network integrity, implementing them in practice can be challenging, ranging from different data requirements (accurate network models, smart meter data, forecasts, etc.) to social and economical considerations (market design, consumer acceptance, fairness, etc.).
- Prof Luis(Nando) Ochoa, Operating Envelopes (Lead)
- Prof Pierluigi Mancarella, Market Co-Optimisation (Lead)
- Dr Michael Liu, Operating Envelopes
- Dr Shariq Riaz, Market Co-Optimisation
- Carmen Bas Domenech, Market Co-Optimisation
- Vincenzo Bassi Zillmann, Operating Envelopes
- James Naughton, Market Co-Optimisation
- Solar PV, Smart Meters
- High and Low Voltage Distribution Networks
- Smart Grids, Data Analytics
- April 2023 (End)
- March 2023
Milestone 5. Technical Documentation, Algorithms and Demonstration.
- Final operating envelope algorithms, refined based on testing results
- Assessment of results from Hume 1, 2 and 3
- Final real-time simulation and visualisation of operating envelopes
Milestone 8. Technical Documentation, Algorithms and Demonstration.
- Final DER services co-optimisation approaches, refined based on testing results
- Assessment of results from Hume 1, 2 and 3
- Final real-time simulation and visualisation of market co-optimisation scenarios
- October 2022
Milestone 4C. Demonstration.
- Progress on real-time simulation and visualisation of operating envelopes
- July 2022
Milestone 4A. Technical Documentation and Algorithms.
- Network modelling, validation and operating envelopes for Hume 3 (first batch)
- Assessment of results from Hume 1
Milestone 7. Technical Documentation, Algorithms and Demonstration.
- DER services deployment and testing
- Progress on real-time simulation and visualisation of market co-optimisation scenarios
- April 2022
Milestone 2B. Technical Documentation.
- Customisation of V/Var and V/W settings for Hume 1
Milestone 3B. Technical Documentation and Algorithms.
- Network modelling, validation, and operating envelopes for Hume 2 (second batch)
- January 2022
Milestone 3A. Technical Documentation and Algorithms.
- Operating envelope approach expanded to HV networks
- Network modelling, validation, and operating envelopes for Hume 2 (first batch)
Milestone 6. Technical Documentation and Algorithms.
- Use cases for market co-optimisation and network support
- Investigation of effects of DER services on operating envelopes
- Process flowcharts detailing techniques for implementation
- November 2021
✓ Reports available to the public
- October 2021
✓ Webinar "Using Operating Envelopes to Ensure Network Integrity: From Concept to Reality"
- August 2021
✓ Milestone 2A. Technical Documentation and Algorithms.
- Near real-time and in-advance operating envelope algorithms for Hume 1
- April 2021
✓ Milestone 1. Technical Documentation and Algorithms.
- Initial operating envelope studies
- Network modelling and validation for Hume 1
- October 2020 (Start)