Fact-Finding Surveys on PSH Business

in Different Power Markets

Accommodating Large Scale VRE

Koichi Ota

(Kansai Electric Power Co., Inc.)

1

Annex-IX専門部会プレゼン資料（ポルトinポルトガル、2019年10月）

1. Research Project of Japan

2. Status of Japani. PSH Deployment

ii. Energy Policy

iii. Power Generation Mix

iv. Market Design

v. Role of PSH for VRE Integration

vi. PSH Business in VRE-Highly-Shared Area

vii. Grid Interconnection

viii. Functions/Values of PSH

ix. Issues of PSH Business

Contents

2

1. Research Project of Japan

Project Goal

To define common and different statuses and issues of pumped storage

hydropower businesses in different power markets

Topics

• The needs for pumped storage hydropower as well as its functions

expected to be delivered in the power system accommodating large

scale VRE (Document research)

• Common and different roles and value of pumped storage

hydropower in different power systems (Document Research &

Fact-Finding Survey)

• Operational figures of pumped storage hydropower stations in

service (Fact-Finding Survey)3

1. Research Project of Japan (Timeline)

FY2017 FY2018 FY2019 FY2020

Portugal (Frades II, EDP, 19 Oct.)

JapanGermany

Austria

Document research

Fact-Finding SurveyU.S.A

Clarification of the design of each power market and technical

& financial issues of pumped storage hydropower business

Supplemental activities

depending on the needs from

the entire Annex IX programs

4

2. Status of Japan

5

i. PSH Deployment

Area Fixed-speed

PSH (kW)

Variable-speed

PSH (kW)

Total

(kW)

Hokkaido 300,000 500,000 800,000

Tohoku 712,340 0 712,340

Tokyo 10,435,500 1,080,000 11,515,500

Chubu 4,164,500 0 4,164,500

Hokuriku 110,000 0 110,000

Kansai 4,419,000 640,000 5,059,000

Chugoku 2,123,000 0 2,123,000

Shikoku 686,200 0 686,200

Kyusyu 1,100,000 1,200,000 2,300,000

Total 24,050,540 3,420,000 27,470,540

As of FY2018

6

(Notes) The figures above include PSHs of J-Power and a local bureau of enterprise, on top of regional power utilities.

Source : Agency for Natural Resources and Energy

0

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2013

2015

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Eelc

tric

ity

dem

an

d [

TWh

]

Inst

all

ed P

SH c

ap

aci

ty [M

W]

Installed PSH capacity(Fixed speed)Installed PSH capacity(Variable speed)Electricity demand

i. PSH Deployment

7

Variable speed units installation

Source : Agency for Natural Resources and Energy

ii. Energy Policy

Power Generation Mix Target in FY2030 - To achieve energy mix target

- To lay foundation to use renewable

energy as one of the major power

sources

(Launched the Feed-In Tariff in 2012)

- To promote energy saving such as

through introduction of EVs

- To lower dependency on nuclear

power generation Oil 3%

Coal26%

LNG27%

Nuclear20% - 22%

Renewableenergy

22% - 24%

Hydro8.8% - 9.2%

Solar7.0%

Wind 1.7%

Biomass3.7% - 4.6%

Geothermal1.0% - 1.1%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0%

20%

40%

60%

80%

100%

Total generation (approx.)1,065 TWh

8

Solar+Wind

Total 8.7%

Source : Ministry of Economy, Trade and Industry

iii. Power Generation Mix by area

9

50Hz

60Hz

Hokkaido

Frequency converter station

Tohoku

Tokyo

Hokuriku

Chubu

Kansai

Chugoku

Shikoku

Kyusyu

Okinawa

AC/DC converter station

900MW

300MW300MW

0

15.3%

2.9% 3.4% 1.5%8.1%

1.6% 5.2% 7.2% 3.8%

15.1%

3.8%

50.5%

44.9%

15.8% 23.4%

50.9%

16.8%

50.5%

60.9%

36.8%

59.5%

29.7%

2.7%29.1%

66.5% 55.4%

7.6%

43.1%

24.0%4.3%

12.7%

19.6%

40.9%

21.0%7.7%

26.2%

6.6%18.2%10.3%

5.3%9.2%

26.9%

10.0%6.4% 9.0%

5.1%

0.1%8.5%0.4% 0.0%

0.8% 0.4% 0.0% 0.9%1.0%

0.4%1.2%

0.0% 0.7%5.5% 5.4%5.4% 6.8% 3.3% 4.7%

8.4% 6.7%9.1%

4.4% 6.1%3.3% 2.3%0.2% 0.9% 0.7% 0.2%

0.7% 1.2% 0.7%0.3% 0.8%3.4% 3.2%

1.8% 1.7% 2.1% 1.1%1.8% 2.1% 4.4%

1.0% 2.2%0.6% 1.9% 0.9% 0.8% 0.3% 0.6% 2.1% 0.6% 0.1% 0.0% 0.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Hokkaido Tohoku Tokyo Chubu Hokuriku Kansai Chugoku Shikoku Kyusyu Okinawa Japan

Oil Coal LNG Nuclear Hydro PSH PV Wind Other RE Other

iii. Power Generation Mix by area (as of FY2018)

Kyusyu

10

VRE[%]

(PV +Wind)4.79.87.89.14.94.07.75.67.78.8

Source : Organization for Cross-regional Coordination of Transmission Operators, JAPAN

ChugokuHokkaido

6.9

Local area Central area Local area

iii. Power Generation Mix by area (as of FY2018)

11

Kyusyu (FY2018)

Chugoku (FY2018)

Hokkaido (FY2018)Tohoku, Chubu, Shikoku (FY2018)

Tokyo (FY2018)

Kansai (FY2018)

Okinawa (FY2018)

Hokuriku (FY2018)

Japan (FY2018)

iv. Market Design (being under review under OCCTO)

kWh : Energy

kW : Available Capacity

ΔkW : Balancing

Non-Fossil

Value

Energy market (Day-ahead, Intraday)

Capacity market(Auction starts

in FY2020)

Balancing market (Auction starts

in FY2021)

Green certificate market

Offering program by area- Available capacity for

peak demand- Frequency control

NOW 2020 2021

12

OCCTO: Organization for Cross-regional Coordination of Transmission Operators, JAPAN

Source : Ministry of Economy, Trade and Industry

- Fixed remuneration for Category I supports PSH business.

- The offering capacity for Category I is limited.

iv. Market Design (being under review under OCCTO)

Offering program menu (Annual auction for next year)

CategoryRequirement

Offering capacityPayment for

Response Control Capacity Fixed cost Variable cost

I

I-a 5min GF, LFC Online >5MW 7% of the average of 3

maximum annual

demands

in each area Available

Depending on

actual

operation

I-b 15min - Online >5MW

I’ 3hour - Off-line >1MW 3% of the maximum

annual demand in each

area

II

II-a 5min GF, LFC Online >5MW

Depending on each area Not Available II-b 15min - Online >5MW

II’ 1hour - Off-line >5MW

13

OCCTO: Organization for Cross-regional Coordination of Transmission Operators, JAPAN

Source : Ministry of Economy, Trade and Industry

v. Role of PSH for VRE Integration

VRE connection

Base load (Nuclear, Geothermal, Hydro)

Thermal

Wind

PV

PV: 360hours/year

Wind : 720hours/year

【A】Demand

【E】PSH (pumping)

【E】PSH (generating)【F】VRE curtailment

Counts on:

- pumping to absorb VRE surplus in early morning and daytime

- generating in nighttime 14

Maximum curtailment hours without compensation

Source : Agency for Natural Resources and Energy

v. Role of PSH for VRE Integration

Power curtailment procedure

Demand & VRE output forecast

- Thermal unit curtailment

- Whole PSH units pumping※Regardless of electricity prices, PSHSs require pumping

to absorb VRE surplus and generating in nighttime to

create an effective reservoir capacity for pumping for next

daytime.

- Interconnection utilization

VRE curtailment

Base load curtailment 15

The target for VRE reflects the negative

capacity of PSH for drawdown. PSH is

needed to introduce VRE as planned to

maintain the flexibility of the network.

vi. PSH Business in VRE-Highly-Shared Area (Kyusyu)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

0

200

400

600

800

1000

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1400

1600

1800

2000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Acc

. PV

in

sta

ll c

ap

aci

ty [M

W]

Nu

mb

er o

f p

um

p o

per

ati

on

,8u

nit

s to

tal

[tim

es]

Number of pump operation & PV capacity (Kyusyu, FY2010 - FY2018)

Acc. PV install capacity

Number of pump operation in daytime (8:00 - 17:00)

Number of pump operation in nighttime (17:00 - 8:00)

Launched

FIT

the Great East Japan

Earthquake

(Stopped Nuclear units)16

Source : Kyusyu EPCO

Restarted

Nuclear units

Fix

ed

& V

ari

ab

le s

pe

ed

un

its

vi. PSH Business in VRE-Highly-Shared Area (Kyusyu)

-4000

-2000

0

2000

4000

6000

8000

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12000

14000

16000

-4000

-2000

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16000

2019

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[MWh]

Electricity demand & generation (Kyusyu, April 2019)

Nuclear Geothermal Biomass Hydro

Thermal PV Wind PV curtailment

Wind curtailment Interconnection PSH Demand

17

Source : Kyusyu EPCO

Generating

PSH operation:

Pumping

Very Frequent!

vii. Grid Interconnection

18

60Hz

Hokkaido

4,190MW

Frequency converter station

Tohoku

12,970MW

Tokyo

53,770MW

Hokuriku

5,040MW

Chubu

24,730MW

Kansai

26,390MW

Chugoku

10,280MW

Shikoku

5,040MW

Kyusyu

15,520MW

Okinawa

1,500MW

AC/DC converter station

900MW

300MW300MW

0

Synchronous Area

(East Japan)

Synchronous Area

(Hokkaido)

50HzThe numerical value in each area shows the

maximum demand in 2018 summer,

while the figure for each interconnection line

shows those facility capacity. 900MW

1,200MW

300MW

1,400MW

5,600MW

2,400MW

16,700MW5,600MW

5,600MW

12,600MW

Synchronous Area

(West Japan)

Source : Organization for Cross-regional Coordination of Transmission Operators, JAPAN

0 10 20 30 40 50 60 70 80 90 100

Hokkaido-Tohoku

Tohoku-Tokyo

Chubu-Tokyo

Hokuriku-Chubu

Chubu-Kansai

Hokuriku-Kansai

Kansai-Chugoku

Kansai-Shikoku

Chugoku-Shikoku

Chugoku-Kyusyu

Denmark(W)-Norway

Denmark(W)-Sweden

Denmark(W)-Germany

Denmark(E)-Sweden

Denmark(E)-Germany

France-Germany

France-U.K.

France-Italy

France-Spain

Norway-Netherland

Netherland-U.K.

Jap

anEu

rop

eTransmission Capacity Factor [%]

vii. Grid Interconnection

19

Source : Y. Yasuda

(Kansai University)

Utilization Factor of Interconnection lines (Japan & Europe, 2014)

- A new regulation started

in 2018 that would help

promote flexible

operation crossing an

extensive area.

- More utilization of the

interconnection lines

may create more

opportunities to use

PSHSs.

[%]

viii. Functions/Values of PSH

20

Source : H. Nagayama (Kyoto University), modified

: Monetized in Japan

ValueFixed-speed

PSHS

Variable-speed

PSHS

kWh : Energy Available Available

kW : Available

capacity

Available capacity (Generating) Available Available

Negative capacity for drawdown (Pumping) Available Available

ΔkW : Balancing Frequency control

(Spinning reserve)

GF, AFC (Generating) Available Excellent

GF, AFC (Pumping) N/A Available

Inertia response Available N/A

Standing reserve (while network is available) Available Available

Non-fossil Available(?) Available(?)

Others Voltage control Available Available

Emergency Black start※ Available N/A

Security Available Available

※Auxiliary diesel engines are only monetized.

viii. Functions/Values of PSH

21

TimeBattery Conventional

hydro

kWPSH

Thermal

Demand

Balancing capability by power source (image)

Balancing speed Balancing capacity

PSH Excellent Excellent

Battery Excellent Good

Conventional hydro Good Good

Thermal Fair Excellent

ix. Issues of PSH Business

Not all the PSH values are remunerated.

22Source : H. Nagayama (Kyoto University), modified

: Monetized in Japan

FixedCost

Valuable

Cost

Energy

Avai lable capacity(Generating)

Negative capacity(Pumping)

Frequency control(Generating)

Frequency control(Pumping)

Inertia responseStanding reserve

Voltage control

Black start

Securi ty

kWh

kW

ΔkW

Non-Fossil

Others

0

0.2

0.4

0.6

0.8

1

1.2

1.4

0%

20%

40%

60%

80%

100%

120%

140%

Cost RevenueMonetized

Revenue