The CNMC launches its first regulatory demonstration project for voltage control in the electricity grid

The CNMC launches its first regulatory demonstration project for voltage control in the electricity grid

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The National Markets and Competition Commission (CNMC) has approved a resolution establishing, at the proposal of Red Eléctrica (REE), the conditions and requirements for a voltage control regulatory demonstration project (sandbox), at the under Article 24 Regulatory Demonstration Projects, of Circular 3/2019, of November 20, which establishes the methodologies that regulate the operation of the wholesale electricity market and the management of the operation of the system (DCOOR/DE/ 004/22).

The project will be implemented in areas where there is a greater number of suppliers to guarantee a high level of competition and which have greater voltage control needs.

Directive (EU) 2019/944 of the European Parliament and of the Council of June 5, 2019, on common rules for the internal electricity market, provides that network operators have services to guarantee security of supply. The directive establishes that they must obtain these services through procedures based on market mechanisms and, thus, allow the energy transition with the maximum guarantees of safety, efficiency and minimum cost.

Market mechanism for the provision of voltage control resource

In order to adapt the current voltage control service to Directive (EU) 2019/944, a regulatory demonstration project will be carried out that will allow the implementation, on a regional and temporary basis, of a market mechanism for the Provision of voltage control resource.

This mechanism will allow experience to be gained when assessing the impact that the definitive implementation of the new voltage control service could have throughout the peninsular territory, as well as assessing the introduction, where appropriate, of possible improvements to said service.

In addition, this project will allow the design of the current mechanism to be adapted to the growing dynamism of the electricity system in terms of greater flexibility in both generation and demand, self-consumption and storage. This will result both in the security of the system and in the improvement of the quality of the service and the reduction of costs and CO2 emissions that currently have to be incurred when solving voltage problems through the programming of active power deliveries.

Carrying out regulatory demonstration projects is covered by article 24 of Circular 3/2019, of the CNMC, of ​​November 20, which establishes the methodologies that regulate the operation of the wholesale electricity market and the management of system operation.

The use of pilot projects makes it possible to achieve an increasingly efficient model, in a progressive and controlled manner, applying dynamic regulation.

Project description

This project will allow testing the monitoring of dynamic setpoints in real time for the control of voltage in the network, compared to the current fixed setpoints, in a market context.

The system operator, as promoter of the project, will be responsible, among others, for managing the processing of requests for participation, verifying compliance with the requirements by the providers, operating the exchanges of information that are necessary, carrying out the follow-up of the operation and to liquidate the service.

Operations will be based on zonal reactive capacity markets, in which all facilities with the capacity to provide the service may participate, whatever their technology, including demand. For this, different modes of service provision are allowed.

The project will be implemented in areas where there is a greater number of suppliers to guarantee a high level of competition and which have greater voltage control needs.

The project is expected to be flexible, both in terms of duration, which could initially reach between 1 and 6 months, depending on the results that are obtained, and in terms of specifications, which could register modifications throughout the course of the project. project with the aim of optimizing it, allowing greater use of the results obtained.

The cost of providing the service through this project will be limited to the cost recorded by the current voltage control mechanism according to recent historical data.

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