GRID OF THE FUTURE - HIGHLY INFORMATED', DECENTRALIZED AND MARKET-DRIVEN ARTIC LE / MAKALE Such mass customization in electricity drastically Network protocols evolved in support of central station electricity, mass-produced to meet an agglomerated load curve. At any moment, this load consists of millions of individual transactions with vastly different values and needs. lnformated. decentralized networks create efficiencies by exploiting such value differences principally through their ability to support the potential discrete matching of loads and generators. For example, matching wind and other intermittent resources with intermittent or "dispatchable" loads - loads that can more readily be deferred or shifted re-conceptualizes historic network processes and alter-traditional roles and responsibilities of all network participants. it produces a number of benefits, including tailor-made reliability levels and more efficient pricing of back-up power and other services, all while enabling market participants to exploit the unique characteristics of all generation, including cogeneration and intermittent resources. INTERMITTENCY AND EFFICIENCY to a different time period. Similarly, cogenerators can exploit decentralized networks to deliver market-driven products during periods of excess generation. Enabling loads to customize their electricity purchases and exploit their dispatchability creates efficiencies by reducing the cost of peak, load-following and back-up power, and other ancillary services. These are likely to be over-priced when centrally provided. Decentralized networks can unleash a variety of benefits and efficiencies, especially with respect to DE. in order to understand the potential, we need to stop thinking about a single Elements ofa decentralized network Decentralized network protocols enhance efficiency, energy diversity and the delivery of innovative, market-driven products. Essential system elements include: O A for-profit network operator (NO), divested of all generation, that owns and operates the grid under incentive or price-cap regulation. O lnformated networks that permit parallel information and energy flows. O A three-part tariff, as developed by Vogelsang, that includes access and throughput charges as well as (zonal) congestion and locational charges. This provides a set of balanced incentives that induce the NO to: provide sufficient capacity and efficiently increase access to meet demand make technology-neutral capacity expansion decisions, such as contract for DE if !his provides capacity more efficiently than line extensions provide incentives to encourage new conventional and renewable energy suppliers at strategic network locations efficiently utilize existing assets and maintain the system develop new, market-driven products reduce transaction costs and enhance the value of commerce along the network. O Strict bilateral contracting with no central power exchange, as proposed by Lester Fink and Marija llia Loads procure baseload, load-following, reactive and back-up power under terms that suit their needs. O lf contracted power is lost, the network immediately sheds the particular load (e.g. water heating) until its contracted back-up supplier injects needed power. Costly system stand-by and idle reserves can be significantly reduced or eliminated. O Placing the burden of intermittency onto loads, which are in the besi position to deal with it, relieving the NO from most traditional central AGC, system balancing and related functions, and allowing it to focus on strategic aspects of customer service. The NO continues to provide residual system regulation and line-loss replacement - functions that individual loads cannot effectively perform. daily load pattern for a region or even for a given location, whether a house or a manufacturing plant. lnstead as in manufacturing mass-customization, we need to focus on the needs of individual applications - for example, lighting, production equipment, process, space and water heating, and ultimately, perhaps, individual residential appliances. This view radically alters the load picture - see Figure 1. A given service location is likely to consist of distinct loads that can be separately metered and served. Dispatchable applications, which might represent only a small fraction of the total load at a single location, include water heating and pumping or any application that depends more on the availability of a given amount of energy over a given time period than on the amount of power supplied at any given moment. in certain buildings, lighting may also be dispatchable at times. Economists would describe the electricity demand of such loads to be more price-elastic - their usage can be more readily shifted or temporarily curtailed. in the US. Richard Cowart estimated that disptchable loads represent between 5% and 17% of total peak and that relatively small peak load reductions dramatically reduce peak prices. lnformated. decentralized networks create efficiencies by exploiting momentary electricity value differences which fundamentally re-conceptualize todays network processes and changes the traditional roles and responsibilities of network participants. Decentralized networks require loads - not network operators - to deal with supplyintermittence. They also require loads to procure their own load-following and reactive power under the principle that these decisions are besi made by entities closest to available information - see lower box on p. 44. This leads to more efficient outlays and pricing for load following, back-up [lower and other services, while exploiting the unique characteristics of all technologies, including cogeneration and intermittent renewables. ♦ ENERJi & KOJENERASYON DÜNYASI 1 "Kojenerasyon: Yüksek Verim, Temiz Çevre, Enerjide Yeniden Yapılanma" = = == = == = = = = ==----=.:..:=..:.:.:...:..:..:::.:::..::..:..:::.:::..:~ .:::..:.:+-5-7
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