Spain to usher 3.5GW of wind power into balancing market

Spain is looking to grant 3.5GW worth of wind power generation capacity the right to operate in its electricity balancing market.

And the introduction of wind power capacity should bring down prices in the balancing market, according to Spanish transmission system operator REE.

The development is significant because, due to the variable nature of its output and unreliable fuel source, wind power has long been deemed inherently unsuitable for use in balancing supply with demand at short notice.

“At the present time 15% of wind farms in Spain have asked REE for authorisation tests in order to provide adjustment services,” said Jorge Moreno, operations manager at Spanish renewables utility Acciona.

Spain had 23GW of wind power capacity installed at the end of last year, according to Spain’s wind power producers association, AEE.

Acciona itself plans to have 3GW of wind capacity available to support the country’s system adjustment service – one mechanism that REE has at its disposal to ensure a constant balance between supply and demand.

In the long term, the use of renewables by Acciona and other Spanish utilities in system balancing could see that technology challenge for some of the balancing market share traditionally held by conventional power sources, such as coal, lignite and natural gas, market participants agree, while pumped storage hydropower will also play an important role.

REE said the increased use of renewables in balancing could add to the security of the provision of electricity and would bring down prices.

How it works

In what Acciona said was a world first, in a pilot at the end of February, the company ramped up wind power production to 400MW for use in system adjustment services within five minutes of being called upon.

This was achieved by constricting output from a number of Acciona’s wind farms prior to it being called upon to ramp up production, so that when additional output was required, the constraints were lifted and output technically increased.

The ability to adjust output, either scaling back or ramping up, is offered into a REE-run adjustment market on a day-ahead basis. The instruction adjust can then come on the day of delivery itself.

Prior to this, wind power had only been used at scale in electricity system balancing by cutting back production at times of high output.

Acciona should have an initial 1GW of wind capacity available and accredited for REE’s use in balancing by 1 May, said Moreno. The company then plans to add an additional 2GW in the next few months.

Other companies

Legislation implemented in February laid out the criteria for renewables to be able to participate in system adjustment services.

There is potential for other renewable sources as well as wind to be applied to balancing. “We do not rule out integrating other technologies later. Biomass could be the next one,” said Moreno.

Other Spanish companies have also sought to use output from renewables in system balancing.

“Viesgo is in the process of participating in the system balancing market through its 400MW renewable capacity, for which we must pass a series of technical tests,” said a spokesman for the Spanish utility.

Giant Spanish utility Iberdrola said it already provided wind capacity for system balancing. “Technology is already challenging the role of conventional energy sources,” an Iberdrola spokesman said in reference to its Meteoflow system, which allows it to accurately predict wind output and adjust power supply accordingly.

Implications

The entry of wind power into balancing markets is an interesting innovation that means renewables could make in-roads into the market share held by conventional power production in system balancing, said an analyst at an energy supplier.

However, Moreno said the degree that renewables would fulfil a role in adjustment services could be limited by how much renewable reserve capacity could be made available.

Regardless of any limitations that may emerge, future balancing markets will be characterised by a combination of conventional production and renewables, with a growing role for renewables, the Viesgo spokesman said.

“Combining conventional and renewable energies in this market will help our system reach a much needed balance between environmental sustainability, security of supply and competitiveness not only in the production mix, but also in system balancing,” said Viesgo’s spokesman.

However, there will also remain a role for the more traditional, reactive and high-impact balancing technologies, such as pumped storage, which can generate a large volume of electricity at very short notice.

“No matter what the situation is, solid back-up capacity is still necessary,” said the Iberdrola spokesman. jon.stibbs@icis.com