Nico Keyaerts

Shift, not drift : towards active demand response and beyond

Each semester the THINK project publishes two research reports based on topics proposed by the European Commission.

The role of thermal storage and natural gas in a smart energy system

Smart grids are considered important building blocks of a future energy system that facilitates integration of massive distributed energy resources like gas-fired cogeneration (CHP). The latter produces thermal and electric power together and as such reinforces the interaction between the gas and electricity-distribution systems. Thermal storage makes up the key-source of flexibility that allows decoupling the electricity production from the heat demand. However, smart grids focus on electricity, often disregarding the role of gas and thermal storage in overall smart energy systems. We find that the technical impact of a massive introduction of CHP on the gas-distribution network is limited in most cases, even providing opportunities to free up capacity. Taking the consumers viewpoint, we highlight the economic importance of the thermal storage tank, which requires a thermal capacity of two to three times the hourly thermal power output of the CHP to optimize electric power production and limit thermal losses. Further increasing the storage tank size can increase the gas-distribution capacity that can be marketed by the distribution system operator, but practical constraints in terms of dedicated land area have to be considered as well.

Impact of wind power on natural gas markets: Inter market flexibility

The introduction of massive amounts of intermittent wind power raises challenges for the proper balancing of the power system. For a number of reasons combined cycle gas turbines are the back-up technology of consequence. Therefore, the flexibility needs of the power generation market are actually transferred to the gas market. A first step is proposed towards a model to quantitatively study this inter market flexibility. Results of our stylised model show that wind power intermittency causes CCGT production to become very variable. Line-pack flexibility appears to be the best suited instrument to respond to this variability both in size and in frequency. More accurate power and gas systems need to be modelled to obtain practically useful results, though.

Entry in European natural gas retail markets: accessing the right contract “portfolio”

The ambitions of the European Union at the end of the 2nd millennium concerning energy policy were noble: creating energy markets that are competitive, secure and sustainable. Although the progress made in creating a common natural gas market is significant, the Energy Sector Inquiry identified a number of shortcomings related to the competitiveness of the markets. This paper looks at a particular building block for the creation of competitive markets: market entry. The authors identify and explain the “portfolio” of tools required for a gas market player who is developing retail activities. Secondly, the availability of a balanced portfolio to new entrants is evaluated based on publicly available literature. Analysis of publicly available data suggests that entrants still face difficulties in constructing the right portfolio. Finally, some solutions for facilitating market entry are recommended.

Assessment of cost-benefit analysis for offshore electricity infrastructure development

The application of cost-benefit analysis (CBA) for offshore electricity infrastructure projects with a pan-European impact is discussed. An analytical framework for the evaluation of CBA methodologies is presented. The framework is then applied to assess the CBAs of three offshore infrastructure projects (EWIC, COBRAcable and ISLES). Overall, the CBAs assessed already comply with several dimensions of the analytical framework. However, based on this assessment it is found that scope for improvement in quality exists in three areas namely, in considering project interactions, in dealing with uncertainty and in making the results between CBAs comparable by ensuring full monetisation. Furthermore, the research also confirms the view that a common harmonised CBA methodology is essential for selection of PCIs.