LOAD SHEDDING

Workshop 20 March 2018

Jeanette Bodi Sørensen & Anders Pallesen

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SIKKERHEDSGUIDE NØDUDGANGE HJERTESTARTER SAMLINGSSTED
AGENDA
10.00 - 10.15 Welcome, purpose and programme
10.15 - 11.00 Introductory presentation from Energinet
11.00 - 11.15 Refreshments
11.15 - 12.00 Workshop #1: Other aspects/points?
12.00 - 12.45 Lunch
12:45 - 13:30 Workshop #2: Importance of the various points?
13.30 - 13.45 Recap of discussions
13.45 - 14.00 Final remarks and further progress
14.00- Coffee

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BACKGROUND AND PURPOSE
Background:
The network code Demand Connection Code (DCC) stipulates that the TSO must lay down rules on
load shedding for demand facilities and distribution systems connected at transmission level.

Purpose of the workshop:

• To present the issue and possible solutions to it
• To receive input from workshop participants to fully understand implications of different
alternatives and also to provide an opportunity to take new alternatives into consideration
The input will support Energinet in making the best possible decision when considering the question
”should load shedding also apply to consumers in the transmission grid?”

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 THIS IS THIS IS NOT WE WILL
An opportunity for A democratic process in Present 5 different models
Energinet and stakeholders which the majority decides to resolve the question of
to exchange views load shedding
A possibility to negotiate
An opportunity for individual terms Present pros and cons to
stakeholders to promote the models
understanding of their
interests
Take all input into
consideration in order to
An opportunity to bring make a sound decision
new alternatives to the
table
WHAT IS LOAD SHEDDING?
Disconnection of demand = load shedding. In Danish “forbrugsaflastning” and “forbrugsafkobling”

• Load shedding is the final tool in the toolbox of Energinet’s control centre
• Must protect the electricity system from a black-out when all other measures have been
implemented
• including automatic reserves, special regulation and forced operation
• Load shedding may be done both automatically and manually, depending on whether
disconnection is performed immediately (automatically, based on frequency measurements) or is
planned (manually)
• No distinction between manual and automatic load shedding is expected. Both will be
implemented as a total package

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USE OF LOAD SHEDDING

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HOW OFTEN WILL LOAD SHEDDING BE USED?
Background
• Load shedding has not been used in the transmission grid under Energinet (since 2005)

Looking forward
• Energinet’s report ‘Security of electricity supply’ describes the probability of having to apply
manual load shedding, based on current market conditions
• Western Denmark: May increase, but still very low (0,000X % of the time)
• Eastern Denmark: Is expected to increase, but still very low (0,00XX % of the time)
• Hopefully, developments in the electricity markets will prevent manual load shedding
• The probability of automatic load shedding is still expected to be very low

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MEMO
Questions to the memo?

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POSSIBLE OUTCOMES - FROM OUR POINT OF VIEW
Transmission
disconnected before
distribution

Socio-economic The advantages and

assessment disadvantages of the
Transmission- (value of lost load)
connected demand various models are
Yes must be included in reviewed in the
load shedding
Changing the rules? Market model following
No Load shedding in
distribution grids
only All connections
included in load
shedding on similar
terms

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MODEL 1: LOAD SHEDDING IN DISTRIBUTION GRIDS ONLY
Current practice is maintained, meaning that distribution grids are included in load
shedding and the transmission grid exempted from load shedding

Advantages :
• No socio-economic costs for implementing load
shedding in the transmission grid
• Based on current estimates of ‘value of lost
load’, consumers with low ‘value of lost load’ are
expected to be disconnected first
Disadvantages :
• Distribution companies must increase existing
automatic load shedding to compensate for
transmission-connected demand. Regular
changes to load shedding requirements in step
with demand development
• If transmission-connected demand exceeds
50%, parts of the transmission-connected
demand must be included no matter what
(NC ER)
• Energinet's operational tools will be impaired
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MODEL 2: TRANSMISSION DISCONNECTED BEFORE DISTRIBUTION
100% of transmission-connected demand is disconnected before load shedding by the
distribution companies is activated

Advantages: Disadvantages :
• Does not presently cover total minimum
requirements for load shedding (50%, NC ER)
• Energinet's operational tools will be impaired
• Based on current estimates of ‘value of lost
load’, consumers with high ‘value of lost load’
are expected to be disconnected first
• Load shedding requirements will need to be
reassessed on an ongoing basis in step with
changes in demand
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MODEL 3: SOCIO-ECONOMIC ASSESSMENT (VALUE OF LOST LOAD)
Load shedding is implemented where it is expected to result in the lowest possible socio-
economic costs, based on ‘value of lost load' estimates. Energinet’s primary source will be
DAMVAD’s report ’Analysis of costs in connection with disconnection of electricity supply’ from
2015. This presupposes that distribution companies apply the same method.

Advantages :
• To the extent possible, demand is disconnected
where this produces the lowest socio-economic
costs based on analysis of ‘value of lost load’
(DAMVAD 2015 report)
• Low transaction costs for assessing willingness
to pay, since no mechanism is needed to identify •
willingness to pay
• Energinet's operational tools become more
robust as more demand is included
Disadvantages :
• Discussions may arise as to whether DAMVAD's
estimates of ‘value of lost load' is correct
• Some distribution companies may find it difficult
to ‘identify’ consumers with low socio-economic
costs
It may be necessary to implement load shedding
in both transmission and distribution grids,
which will lead to socio-economic costs
• Load shedding requirements must be reviewed
regularly
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MODEL 4: MARKET MODEL
Market-based load shedding will ensure that demand with the lowest value creation,
cf. model 3, is disconnected first. Stakeholders ‘reveal’ their value creation through
market mechanisms.

Advantages :
• Correctly devised market mechanism provides a
basis for carrying out economically optimised
load shedding
• Stakeholders may affect their load shedding
probability
• Consumers with the highest security of supply
pay a higher rate to Energinet, comparatively
• Energinet's operational tools obtain maximum
strength as all demand is included
Disadvantages :
• A market model may require precise information
about load shedding probabilities. This probability
involves a considerable level of uncertainty (for one,
because it is expected to be very small)
• It is difficult to determine the right value/willingness to
pay for a stakeholder
• Considerable transaction costs, among other things
• Regular reassessment
• Heavy valuation of individual radials in the distribution
grid
• May in practice lead to discrimination between
transmission and distribution 14
MODEL 5: ALL CONNECTIONS INCLUDED IN LOAD SHEDDING ON
SIMILAR TERMS
Transmission-connected demand implements load shedding subject to the same
requirements as distribution
Advantages :
• Energinet's operational tools obtain maximum
strength and flexibility as all demand is included
and no prioritisation is required
• No regular reviews of load shedding
requirements
Disadvantages :
• Socio-economic costs of implementing load
shedding in transmission grid
• Based on current estimates of ‘value of lost
load’, consumers with high and low ‘value of lost
load’ are expected to be disconnected similarly
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WORKSHOP 1
Discuss in small groups at your tables:

• Should Energinet consider other alternatives?

• Can you suggest further pros and cons?

You do not need to reach an agreement at your table – just make notes of all suggestions – but
please put all input in writing

Slides with the 5 models as well as clean pages for noting further alternatives are provided at each
table

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LUNCH BREAK

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 WORKSHOP 2
How do you rate the suggested models?
Energinet should
Neither explore this more Energinet should
Totally Has significant good nor – might be a good implement this
irrelevant disadvantages bad alternative model

1 2 3 4 5 6 7 8 9 10

You do not need to reach an agreement at your table – just note your individual ratings
of the five models
Please feel free to add any comments additional to your rating

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WHAT WE DISCUSSED

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WHAT HAPPENS NEXT?

All input from the meeting as well as the original presentation will be distributed to participants
(week 12).

Further input and comments may be emailed to Energinet (week 13+14): JBO@ENERGINET.DK
Energinet will distribute these input and comments to all participants in the workshop.

Energinet will evaluate your input and take them into consideration when making a decision.

Energinet will submit all DCC material to the Danish regulator in September 2018. A public
consultation will follow.
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THANK YOU

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