Power Quality Market - Unbundling for more flexibility in the provision of power quality

Abstract:
The supply of electrical energy is a fundamental pillar for the economy of industrial nations. Therefore, a stable supply of electrical energy is extremely important for the national economies. Power quality forms an elementary basis of this reliability. A prominent example of a power quality standard is DIN EN 50160, the standard defines explicit limits for elementary parameters of power quality. Further system services ensure to keep the supply and demand in balance to improve the efficiency and reliability of the energy system. The maintenance of this balance is known as a current critical issue due rapid and sometimes unexpected changes in the supply and demand sides. The loss of this balance may result in frequency and/or voltage instabilities, an increase of the utilization of the electrical equipment and in summary an increase of costs. Obviously, it is therefore essential to create smart solutions in the form of flexibilities for the distribution of power quality in order to be able to provide and control these (increasing) fluctuations in the need for the provision of mechanisms for power quality stabilization. According to the current state of the art, the operators of the respective grid are generally exclusively responsible for maintaining the power quality. The mentioned need for short term equilibrium between power supply and power demand in order to maintain the system wide stability of power quality is defined as flexibility for power. Therefore, a liberalization of power quality distribution with an own market is recommended. Thus, the challenge in this area is to develop a regulated platform that can follow the requirements of a liberal market as far as possible and regulated as necessary. In summary, a methodology is used which includes an integrated market, business model and technology development. If not all three aspects are taken into consideration, it cannot be assumed that a liberalized power quality market would be sustainable and functional in the long-term. In summary, this paper shows that an increase in the flexibility of the electricity supply is sustainably possible if technical and economic characteristics are considered, which include the quadratic relationship between harmonic voltage (THD) and the resulting (loss) power, as well as the need for regulation.