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Power Wheeling and Direct Supply

Background

In Taiwan, the Electricity Act is passed in January 2017. This act has activated the reform of electricity liberalization. To alleviate the impact of the reform on the current system, the first stage will be the so-called “renewable energy first,” which means that free trading of green energy is permitted and consumers are allowed to choose their power suppliers. Trying to learn from other countries’ experiences and see if they can fit well with our industrial structure, TPC is now working on the formulation of regulations for power wheeling and grid-connection type direct supply, and also establishing the “power wheeling & direct supply platform” on which relevant works can be done.

Project contents

The structure of power wheeling and grid connection type direct supply is shown in figure 1. Power wheeling means that power source can transmit power to customers through grid company; grid connection type direct supply means that customers are connected to power sources through private lines. Renewable energy, Due to their intermittent property, are still considered as unstable power source. Therefore, when there is surplus or lack of power, TPC, as an electricity retailing utility enterprise, is responsible of maintaining stable power supply.

Illustration of power wheeling and grid connection type direct supply

The purpose of “power wheeling & direct supply platform” is to promote the service of power wheeling and direct supply. Figure 2 shows the structure of the platform. With the help of AMI, which precisely records power generation and consumption every 5 minutes, the amount of power, either delivered through power wheeling or direct supply, can be analyzed and used as the basis of reviewing of “bundled renewable energy certificate.”

Necessity of the project

(I)Providing compound ways of selling power
In the past, power generated by renewable-energy-based electricity generating enterprise are sold to TPC at price of the feed-in tariff announced by the government. Now, the power wheeling & direct supply system can provide renewable energy developers with compound choices of how they are going to sell their power

(II)Satisfying needs of industries
Many corporations had already announced that they will use green energy as their power source. Also, the government also legislate that the percentage of green energy usage should reach specific degrees. The power wheeling & direct supply system can help corporations not only satisfy the regulations set by the government but also acquire the bundled renewable energy certificate.
(III)Set the foundation for overall electricity liberalization
Electricity liberalization is a trend of electricity development. Through completion of relevant regulations and operating scheme, step by step, during the process of promoting electricity liberalization, this project will help set a foundation for overall electricity liberalization.
(IV)Advantages of the platform
The “power wheeling & direct supply platform” possesses several intact functions such as wheeling contract management, power consumption settlement, cost accounting, etc. Also, the platform is able to integrate with power acquisition mechanism and public electricity retailing mechanism. In the future, in face of overall electricity liberalization, this platform can be expanded as a mid- and long-term electricity transaction management platform.

Benefits of the project

(I) Benefits for TPC
It is believed that the promotion of power wheeling & direct supply system can help TPC adjust its organization and nurture relevant employees to make sure that overall electricity liberalization is successful in the future.
(II) Benefits for customers
The power wheeling & direct supply system can offer customers compound ways of purchasing electricity. Through marketing mechanism, customers are free to choose their own power supplier to satisfy their needs of green energy purchases. Also, combination of different retailing schemes can help corporations reduce their cost on power consumption.
(III) Benefits for industries
Through marketing mechanism, corporations can be more competitive and efficient in their performances. In addition, more corporations can be attracted to invest in the development of renewable energy technologies.
(IV) Promoting construction of smart grid
Customers who participate in the platform of power wheeling and direct supply are required to install AMI smart meters. It is helpful for increasing the penetration of AMI and speeding up construction of smart grid.
(V) Speeding up renewable energy development to meet the government goal
By 2025, it is planned that the percentage of renewable energy generation shall reach the government goal of 20%. Through promotion of mechanism of power wheeling & direct supply to establish a market that is equitable and sound, more corporations can be encouraged to participate in the green energy industry. Thus, the goal of energy transition can be achieved.

Conclusion

Electricity liberalization has become a global trend. In Taiwan, regulations, techniques, industrial environment, and social consensus are all mature and ready for electricity liberalization. The mechanism of power wheeling and direct supply will kick-start the electricity liberalization in Taiwan. Also, the power wheeling & direct supply platform is beneficial for execution of power wheeling and direct supply contract. It is expected that through sound planning we will be able to reach the goal of electricity liberalization.

Awards

The Department of System Planning was awarded the Asian Power Awards 2019:
A paper, “Designing a Platform and System for Power Wheeling and Direct Supply in Taiwan,” proposed by the Department of System Planning of Taiwan Power Company, was awarded “ Innovative Power Technology of the Year” and “Smart Grid Project of the Year” in the category of SUPPORTING PROJECTS of the Asian Power Awards 2019. This is such an honor for Taiwan Power Company since it took great efforts to push the wheeling system work. The following are the two certificates of merit.