The local grid operator’s challenge
Annually, renewable electricity generation in Orkney is over 100% of electricity demand. During windy periods of the year, there was insufficient local demand for energy generation. This often resulted in high levels of curtailment as the distribution network operator (DNO) – Scottish & Southern Electricity Networks – was unable to export excess wind energy due to grid congestions.
The renewable energy generators’ challenge
For newer wind farms, with flexible connections, curtailment was typically reaching 40-60% of generation capacity. This meant significant lost revenue and delays connecting assets in a region where there are favourable conditions for wind farms.
The DER aggregators’ challenge (Kaluza)
The aggregator represented local consumers operating electric storage heaters. Local consumers were interested in providing demand turn up services and accessing local renewable energy, but didn’t have an opportunity to do so.
Solution for the local grid operator
Electron designed and deployed a market that allowed curtailed wind farms to pay local demand assets for the demand turn up (DTU) service during periods of excess wind generation. The result was that local consumers got paid for using renewable energy and curtailed wind farms could avoid curtailment. The DNO provided curtailment signals to facilitate trading in this market.
Solution for the local renewable energy generators
The market enabled curtailed wind farms to buy demand turn up services from local consumers. This helped wind farms to benefit from curtailment avoidance during periods of high output.
Solution for the DER aggregator
The aggregator enabled local consumers with controllable loads to get paid for using renewable energy when it was abundant.