PROSUMER ON THE ENERGY MARKET: CASE STUDY

PROSUMER ON THE ENERGY MARKET: CASE STUDY

PROCEEDINGS OF THE INSTITUTE OF VEHICLES 2(102)/2015
Adrian Chmielewski1, Stanisław Radkowski2
PROSUMER ON THE ENERGY MARKET: CASE STUDY
1. Introduction
The prospect of running out of fossil fuel resources opens the way for a new
perception of functioning of both Polish and European energy markets. The climate
package obliges the European union member states to increasing: RES participation in
the energy market (27% in view of 2030), improvement of primary fuel processing
efficiency (27% in view of 2030), and reducing CO2 emissions (in prospect of 2030 – by
40% in relation to the year 1990) [1]. It should be emphasised that the climate package
for 2020, assuming the 20% RES participation in the energy market (for Poland the 15%
participation is obligatory), the 20% improvement in energy efficiency, as well as the
20% reduction in CO2 emissions (in relation to the year 1990), is an incentive for
development of distributed generation new technologies [2-4]. In paper [5], the chosen
technologies of distributed generation have been described, both cogeneration
technologies, which in combination generate electric energy or mechanical energy and
heat, as well as renewable energy sources that process the existing energy: of the sun,
wind, water into electric energy.
In accordance with the directive [3], among the cogeneration technologies the
following have been included: gas turbines in the combined cycle with heat recovery;
back pressure steam turbines, steam condensing extraction turbines, gas turbines with
heat recovery; combustion engines, microturbines, Stirling engines, fuel cells, steam
engines as well as the Rankine organic cycle. Among the technologies of the distributed
generation producing only electric energy, the following have been included: geothermal
systems, photovoltaic cells, wind turbines, small and mini-hydro plants.
From the point of view of a person who is interested in the energy prices and
actively participates in the energy market (a prosumer) [6], the micro generation and
micro cogeneration technologies are particularly important; the value of energy
generated by them does not exceed 40 kW [7-21].
2. Prosumer in the light of the Act on Renewable Energy Sources (20 February
2015)
Poland as a member of the European Union, as has already been mentioned, must
achieve in the prospect of 2020 the level of 15% participation of renewable energy
sources (15% of the generated energy and, at the same time, energy consumed by the
end users must be of the RES origin). In order to achieve this aim, Polish authorities
have passed a law on renewable energy sources on 20 February 2015 [20], regulating
public support (so-called: feed-in tariff) for the chosen technologies of electric energy
“generation”. The law defines [20] the so-called obliged buyer, who has an obligation
1
M.Sc. Eng. Adrian Chmielewski, Research assistant, Institute of Vehicles, Warsaw University of Technology,
e-mail:[email protected]
2
Prof. M.Sc. Eng. Stanisław Radkowski, PhD., Dean of Faculty Automotives and Heavy Machinery Design,
Warsaw University of Technology
23
of purchasing the electric energy from the newly-built RES installations, from the energy
producer generating it by means of a microinstallation (Microinstallation – according to
[20] – is a renewable energy source installation with a total installed electric power not
greater than 40 kW, connected to the power grid with the nominal voltage lower than
110 kV, or with the combined maximum achievable heat power not greater than
120 kW) with capacity of up to 3 kW at a determined fixed unit price only, which in the
case of the following types of RES installations equals to, respectively [20]:
 Hydro energy – 0.75 PLN for 1 kWh,
 land-based wind energy – 0.75 PLN for 1 kWh,
 solar radiation energy – 0.75 PLN for 1 kWh.
Purchase prices of electric energy from renewable energy sources installations with
capacity of up to 3 kW, which have been mentioned above, are binding as long as the
total combined capacity of the sources launched does not exceed 300 MW, or until the
prices are changed on the basis of the regulation by the body competent to proceed in
economic matters [20].
The obliged buyer is committed to purchase the energy generated in the newlycreated renewable energy source with capacity over 3 kW to 10 kW only at a determined
fixed unit price, which in the case of the following types of renewable energy sources
installations amounts to, respectively [20]:
 agricultural biogas – 0.70 PLN for 1 kWh;
 biogas obtained from resources originating from landfill sites – 0.55 PLN for
1 kWh,
 biogas obtained from resources originating from wastewater treatment plants –
0.45 PLN for 1 kWh,
 hydro energy – 0.65 PLN for 1 kWh,
 land-based wind energy – 0.65 PLN for 1 kWh,
 solar radiation energy – 0.65 PLN for 1 kWh.
It should be added that the purchase prices of electric energy from RES installations
with capacity of over 3 kW to 10 kW, which have been mentioned above, are binding as
long as the total combined capacity of the sources launched does not exceed 500 MW, or
until the prices are changed on the basis of the regulation by the body competent to
proceed in economic matters [20].
Settlement of the balance between the energy sold to the grid and the energy coming
from it is done every 6 months on the basis of the contract on electric energy sale, and of
the meter reading. The body responsible for the availability of the RES energy in the
domestic power system is Operator Rozliczeń Energii Odnawialnej S.A. (the state agent
- the “OREO”, the Renewable Energy Settlement Operator).
2.1. Energy sale by the prosumer to the distribution network in the light of the RES
Act of 20 February 2015
The prosumer can sell the excess of the energy generated in the micro installation to
the low-voltage distribution network at the guaranteed price, depending on the micro
installation type, which have been discussed in Chapter 2. The micro installations most
popular among prosumers are on grid installations with photovoltaic cells. The manner
of settling the balance between the prosumer and the energy distributor is particularly
important, this is the so-called Net metering (Fig. 1).
24
Fig. 1. Diagram of the balance settlement between the prosumer and the distribution
network operator, in accordance with the Net metering rules
Net metering assumes settlement with the distribution network operator based on the
difference between the energy purchased from the low-voltage power grid, and the
excess energy produced in the micro installation. The energy transferred to the grid by
the prosumer ca be described by the following equation [6]:
t2


M Net   PConsump(t )  PPV (t ) d t
(1)
t1
where:
PConsump – consumer demand for power (so-called consumer profile),
PPV – power produced by the micro installation.
From the analysis of the relationship (1) three possible cases can be identified [6]:
1. PConsump = PPV →Mnet=0 – the meter indicates 0 (the amount of purchased
energy and energy sold to the grid is the same),
2. PConsump > PPV →Mnet>0 – the meter indicates only the difference in energy
consumption which the prosumer has to cover paying for the energy used from
the grid (the average purchase price of energy from the grid, for the G11 tariff
amounts to 0.56 PLN/kWh [22]).
3. PConsump < PPV →Mnet<0 – the meter indicates the negative value in the given
reference period. The example of such a situation is effectiveness-enhancing
activity, and energy saving tactics implemented by the prosumer. In such a
case, the energy buyer pays the prosumer the amount of money resulting from
the balance settlement. For the year 2015 it amounts to 0.184 PLN/kWh [23],
from 1 January 2016 [20], however, on the basis of the feed-in tariff the
prosumer can receive 0.75 PLN/kWh when the installation’s capacity equals to
3kW (it regards the prosumers who are among the newly-built microinstallations’ owners, the accumulated capacity of which will not exceed
500 MW). The remaining group will receive 100% of the average price on the
competitive market from the previous quarter of the year.
2.2. Prediction of the micro installation profitability
The prosumer, knowing the micro installation price, and its technical parameters
(efficiency, capacity, durability), can choose the type of micro installation and estimate
the amount of a yearly production of electric energy using, for example: information
available on the European website devoted to photovoltaic matters (so-called European
photovoltaic calculator) [24].
25
The authors, by way of illustration, selected the micro installation (the SiMR Faculty
building, the installation efficiency 18.1%, capacity - 1kW), for such input data, the
information can be obtained about a yearly energy production by this micro installation Figure 2.
Fig. 2. Monthly energy output from fixed-angle PV system – an exemplary location,
the SiMR Faculty building, PV installation of 1 kW [24]
Figure 2 shows that the highest monthly values of the electric energy generated from
the PV micro installation are obtained in the summer months (the highest exposure to
sunlight).
2.3. Implicit conclusions for the prosumer resulting from the RES Act of
20 February 2015
The Act regards the newly-built RES installations. The guaranteed price mentioned
in the Act applies to those micro installations only, which have been entirely financed
from future prosumer’s private resources. Feed in tariff is not combined with the
26
"Prosumer" programme run by the National Fund for Environmental Protection and
Water Management (Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej).
In the case when the prosumer installation exceeds the capacity of 10 kW, then the
price for selling the energy to the grid will probably amount to 100% of the competitive
market price from the previous quarter, which will be made public by the Energy
Regulatory Office President every quarter (currently, it is announced once a year). The
regulations will enter into force on 1 January 2016. The decision regarding the new
purchase price will be issued by the Minister of Economy in the Regulation.
By the end of 2015 the selling price of electric energy amounts to 80% of the
competitive market price. Currently (I quarter of 2015) the energy price on the
competitive market amounts to 181.55PLN/MWh which means that energy can be sold
to the grid at 150.84PLN/MWh. It should be emphasized, that the price discussed is a
gross price, and the income tax should be deducted from the revenues.
The Act defines the obligation to purchase the electric energy produced from
Renewable Energy Sources (1 paragraph, point 1 and 3) from the first day of energy
introduction (approved by the certificate of origin, which is issued for the period of
15 years, but no longer than till 31 December 2035, defining among others, the location
of the micro installation, its type, capacity, and other specific properties) to the
distribution network.
The settlement (the Net metering rule) between the producer (prosumer) and the
obliged buyer is based on the electric energy sale contract (under Article 5 paragraph 1
and 2 point 1 of the Energy Law Act [25].
In the case of a fixed price of energy, which is sold to the grid, storing energy is not
economically justified for the prosumer. The profitability of the investment in the energy
storage by the prosumer will take place no sooner than when the variable prices for the
energy produced in the micro installation will apply (the issue of the reversed incentive
schemes). It will be necessary, in such case, to develop in Poland the energy Smart Grid
aggregators [26] (managers who can, in a short period of time, influence the immediate
energy consumption change at their prosumer clients).
References:
[1]
EUCO 169/14 - conclusions – 23-24 October 2014.
[2]
Directive 2009/28/EC of the council of 23 April 2009, on the promotion of the
use of energy from renewable sources and amending and subsequently repealing
Directives 2001/77/EC and 2003/30/EC.
[3]
Directive 2012/27/EU of the European Parliament and of the Council of
25 October 2012 on energy efficiency, amending Directives 2009/125/EC and
2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC.
[4]
Directive 2009/72/EC of the European Parliament and of the Council of 13 July
2009 concerning common rules for the internal market in electricity and repealing
Directive 2003/54/EC.
[5]
Chmielewski A., Gumiński R., Radkowski S., Szulim P.: Aspekty wsparcia i
rozwoju mikrokogeneracji rozproszonej na terenie Polski (Aspects of support and
development of distributed microcogeneration in Poland), Rynek Energii, 2014,
nr 5 (114), pp. 94-101.
[6]
Kacejko P., Pijarski P., Gałązka K.: Prosument - przyjaciel, wróg czy tylko
hobbysta? (Prosumer – a friend, an enemy, or an enthusiast?), Rynek Energii,
nr 5(114), 2014.
27
[7]
[8]
[9]
[10]
[11]
[12]
[13]
[14]
[15]
[16]
[17]
[18]
[19]
[20]
[21]
[22]
Dąbrowski J., Hutnik E., Włóka A., Zieliński M.: Analiza wykorzystania
instalacji fotowoltaicznej typu on-grid do produkcji energii elektrycznej w
budynku mieszkalnym (Analysis of the use of an on–grid photovoltaic system for
production of electric energy in a residential building), Rynek Energii, No. 1,
Vol. 110, 2014.
Chmielewski A., Lubikowski K., Radkowski S.: Badania temperaturowe i analiza
współpracy układu mikrokogeneracyjnego z silnikiem gazowym (Temperaturefocused tests and cooperation analysis of microcogeneration system and gas
engine), Rynek Energii, Nr 3 Vol. 118, pp. 56-63, 2015. [In Polish]
Chmielewski A., Lubikowski K., Radkowski S.: Simulation of energy storage
work and analysis of cooperation between micro combined heat and power
(μCHP) systems and energy storage, Rynek Energii, No 2, pp.126-133, 2015.
Chmielewski A., Gumiński R., Radkowski S., Szulim P.: Experimental research
and application possibilities of microcogeneration system with Stirling engine,
Journal of Power Technologies (Polish Energy Mix), 2015.
Allan G., Eromenko I., Gilmartin M., Kockar I., McGregor P. The economics of
distributed energy generation: A literature review. Renewable and Sustainable
Energy Reviews 2015; 42: 543–556.
Maghanki M. M., Ghobadian B., Najafi G., Galogah R. J. Micro combined heat
and power (MCHP) technologies and applications. Renewable and Sustainable
Energy Reviews 2013; 28: 510–524.
Streimikiene D., Baležentis T. Multi‒criteria assessment of small scale CHP
technologies in buildings. Renewable and Sustainable Energy Reviews 2013; 26:
183–189.
García‒Maroto I., García‒Maraver A., Muñoz‒Leiva F., Zamorano M. Consumer
knowledge, information sources used and predisposition towards the adoption of
wood pellets in domestic heating systems. Renewable and Sustainable Energy
Reviews 2015; 43: 207–215.
European Smart Grids Technology Platform, European Commission Directorate–
General for Research, 2006.
Fang X., Misra S, Xue G., Yang D. Smart Grid – The New and Improved Power
Grid:A Survey, IEEE Communications Surveys & Tutorials. 2012; 14 (4):
944‒980.
Soshinskaya M., Crijns‒Graus W. H. J., Guerrero J. M., Vasquez J. C.
Microgrids: Experiences, barriers and success factors. Renewable and Sustainable
Energy Reviews 2014; 40: 659–672.
Rigo‒Mariani R., Sareni B., Roboam X., Turpin C. Optimal power dispatching
strategies in smart‒microgrids with storage. Renewable and Sustainable Energy
Reviews 2014; 40: 649–658.
Markovic D. S., D. Zivkovic, Branovic I., Popovic R., Cvetkovic D. Smart power
grid and cloud computing. Renewable and Sustainable Energy Reviews 2013; 24:
566–577.
The RES Act of 20 February 2015. [In Polish]
The Journal of Laws of the Republic of Poland, item 984, Warsaw, 27 August
2013.
Zakład
Energetyczny
(Energy
Operator)
–
http://zaklad.energetyczny.w.interia.pl/–{accessed 20.03.2015}
28
[23]
[24]
[25]
[26]
Urząd Regulacji Energetyki – Energy Regulatory Office - Information
(nr 15/2014) on the average electrical energy selling price on the competitive
market in 2013.
Website
http://re.jrc.ec.europa.eu/pvgis/apps4/pvest.php#
{accessed
29.03.2015}
The Act of 10 April 1997 – The Energy Law, 12 February 2015.
Matusiak B.E., Pamuła A. Koncepcje modeli biznesowych z wykorzystaniem
rozproszonych źródeł energii (Concepts of business models using distributed
renewable energy sources). Rynek Energii, nr 1, 2010.
Summary
In this part of the paper, the chosen issues of the civil prosumership in Poland have
been shown, in the context of the Act on the Renewable Energy Sources [20]. The
selected advantages have been presented and discussed, with a prosumer with a
photovoltaic installation taken as an exemplary case. The chosen objectives have been
discussed, which are of substantial importance for investment in microinstallation in
Poland after 1 January 2016. Also, the possibilities of selling the electric energy to the
distribution network in accordance with the Net Metering rule.
Key words: prosumer, energy sale, guaranteed price
PROSUMENT NA RYNKU ENERGII: STUDIUM PRZYPADKU
Streszczenie
W niniejszej części pracy przedstawiono wybrane zagadnienia rozwoju
prosumenctwa obywatelskiego na terenie Polski w kontekście ustawy o Odnawialnych
źródłach energii [20]. Zaprezentowano i omówiono wybrane korzyści na przykładzie
prosumenta z instalacją fotowoltaiczną. Omówiono także wybrane przesłanki, które
mają istotne znaczenie przy inwestycji w mikroinstalację na terenie Polski po 1 stycznia
2016 roku. Przedstawiono również możliwości sprzedaży energii elektrycznej do sieci
dystrybucyjnej według zasady Net Meteringu.
Keywords: prosument, magazynowanie energii, energia
29