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Flexible international exchanges: a possible solution for large – scale wind power integration within the future power system

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Thesis Presentation

  1. 1. Flexible international exchanges: a possible solution for large – scale wind power integration within the future power system Author: Kostantinos Ntotas Supervisor: Willhelmus Kling EPS Department TU Delft
  2. 2. <ul><li>Table of Contents </li></ul><ul><li>1. Introduction </li></ul><ul><li>2. Model Development </li></ul><ul><li>3. Simulation Set-Up </li></ul><ul><li>4. Simulation Results </li></ul><ul><li>5. Conclusions </li></ul><ul><li>6. Recommendations </li></ul>Flexible international exchanges: a possible solution for large – scale wind power integration within the future power system Nordel Power System
  3. 3. 1. Introduction <ul><li>Power System Operating Principle => Generation = (Demand + Imbalances ) / hour / day / year => f = 50Hz </li></ul><ul><li>The price of electricity is dependent on generation-mix, energy-demand and weather conditions varies / hour / day / year </li></ul><ul><li>Automatic Generation Control (AGC) + Unit Commitment and Economic dispatch (UC-ED) important for: safe, reliable, economic operation </li></ul>
  4. 4. 1. Introduction L I B E R A L I Z A T I O N <ul><li>Power System Operating Principle => Generation = (Demand + Imbalances ) / hour / day / year => f = 50Hz </li></ul><ul><li>The price of electricity is dependent on generation-mix, energy-demand and weather conditions varies / hour / day / year </li></ul><ul><li>Automatic Generation Control (AGC) + Unit Commitment and Economic dispatch (UC-ED) important for: safe, reliable, economic operation </li></ul>
  5. 5. <ul><li>Significant Challenges for the Planning and Operation of the future </li></ul><ul><li>Power System: </li></ul><ul><li>Renewable energy integration => Stochastic Generation </li></ul><ul><li>Challenges: Power Balancing, Unused Renewable Energy </li></ul><ul><li>Liberalization of power markets => Market Competition </li></ul><ul><li>Challenges: Regulation Penalties, Reduced Profitability </li></ul><ul><li>Environmental limitations => Need for Efficient Operation </li></ul><ul><li>Challenges: Emission Penalties, Global Warming </li></ul>1. Introduction Possible Large-Scale Solutions Electrical & Heat Energy Storage Flexible Market Design International Energy Exchange
  6. 6. <ul><li>Unit Commitment (UC) : the computational procedure, which combines regularly updated data </li></ul><ul><li>of the generation portfolio state for making decisions in advance, upon: </li></ul><ul><ul><li>Which generators to start up </li></ul></ul><ul><ul><li>When to connect them to the grid </li></ul></ul><ul><ul><li>In which sequence the operating units should be shut down </li></ul></ul><ul><ul><li>For how long </li></ul></ul>1. Introduction Hours MW Economic Dispatch (ED): The actual dispatch of electricity with a view to minimize the total system costs => by aggregating the output of the various generation technologies prioritized from lower to higher Marginal Cost (MC) Must run 0-cost resources Base load plants Flexible plant Peakers
  7. 7. <ul><li>Installed wind power capacity worldwide (2008) => 100 GW => almost 75 GW installed </li></ul><ul><li>in Europe => 4% of total generation serves well enough 90 million residents </li></ul>1. Introduction Global Installed Wind Capacity (GW) On-shore European Installed Wind Capacity (MW), 2007 <ul><li>However, the large-scale wind integration within the power system affects Power System operation and consequently UC-ED: </li></ul><ul><li>Technical Impacts (minimum-load problems, power balancing etc) </li></ul><ul><li>Economic Impacts (increases the operational cost of conventional generation) </li></ul><ul><li>Environmental Impacts (emission increase of conventional generation) </li></ul>
  8. 8. <ul><li>Local impacts of large-scale wind integration => less noticeable when the electrical distance from the source increases => For investigation of system-wide impacts =>a global view is required </li></ul><ul><li>Main Research Objective </li></ul><ul><li>Development of a multi-area model that can simulate the physical and market </li></ul><ul><li>coupling between the systems of W-UCTE and Nordel such that the impacts </li></ul><ul><li>of international exchange in the large-scale wind power integration will be </li></ul><ul><li>investigated </li></ul><ul><li>Sub-objectives </li></ul><ul><ul><li>Extension of the W-UCTE simulation model with Nordel </li></ul></ul><ul><ul><li>Development of annual hydro allocation method for reservoir scheduling, specific for PowrSym3 </li></ul></ul><ul><ul><li>Various scenarios simulations with PowrSym3 </li></ul></ul><ul><ul><li>Analysis </li></ul></ul>1. Introduction
  9. 9. 2. Model Development W-UCTE Existing Model Generation Mix 2014 <ul><li>The studied year is 2014, 6 years ahead horizon. The existing model comprises: </li></ul><ul><li>Validated models of 70 largest generation units in the Netherlands </li></ul><ul><li>Representative models of generation plants in neighboring power systems for 2014 </li></ul><ul><li>Load data for the W-UCTE operating areas (NL, DE, FR, BE, GB) </li></ul><ul><li>Correlated Wind power data for the areas of NL (0-12 GW) and DE (32GW) </li></ul>
  10. 10. 2. Model Development Nordic Power System NORNED Sub-marine HVDC cable <ul><li>Nordic Power System => Norway (NO), Sweden (SV), Finland (FI), Denmark-East (DKW). Denmark West (DKW) belongs to W-UCTE. The Transmission System Operator (TSO) is named Nordel. Its main tasks: </li></ul><ul><li>To ensure the operational security of the power system and to maintain the power balance between supply demand </li></ul><ul><li>To ensure the long term adequacy of the transmission system and to enhance the efficient functioning of the electricity market. </li></ul>Norway - The Netherlands linked through NORNED Start Operation: 08/05/08 Capacity: 700 MW Technology: HVDC Voltage: ± 450 kV Distance: 580 km Start Operation: 08/05/08 Capacity: 700 MW Technology: HVDC Voltage: ± 450 kV Distance: 580 km
  11. 11. 2. Model Development Generation Mix Nordel, 2014 Installed Capacities, 2014 The final model configuration is presented here: 14.4 21.2 88.9 144.5 124.3 Total Demand (TWh/y) 2.6 3.7 14.8 26.5 21.6 Maximum Load 1.4 2.6 0.22 2.1 0.8 Wind Power 6.5 17.0 21.0 36.2 31.0 Total - - 1.9 2.7 - Other - - 3.4 18.5 30 Hydro 0.3 1.0 1.0 1.3 1.0 CCGT 4.3 14.1 8.1 1.2 - CCGT CHP 1.9 1.9 2.5 - - Coal - - 4.0 12.5 - Nuclear GW GW GW GW GW Denmark-E Denmark-W Finland Sweden Norway Technology
  12. 12. 2. Model Development The modeling approach resulted in an extended model of the European Power System, appropriate for large-scale PS studies + W-UCTE Model Nordel Model West-European Model
  13. 13. 3. Simulation Set-Up <ul><li>Simulation objective: To present an annual optimized UC-ED schedule, for a given scenario in 2014 </li></ul><ul><li>Objective function: To minimize the total system operating costs and emission, while respecting the constraints </li></ul><ul><li>PowrSym3 optimizes international exchange volumes of the respective power system configuration for the hour / week / annual horizon </li></ul><ul><li>The results are reported into weekly and annually output files in a concentrated fashion, whereas the optimization has hourly resolution </li></ul><ul><li>The simulation parameters are divided into technical and economic dimension: </li></ul><ul><li>Technical Dimension </li></ul><ul><li>ENS (Energy-Not-Served) </li></ul><ul><li>SR Violations (SR: Spinning Reserves) </li></ul><ul><li>Wasted Wind Energy (minimum-load) </li></ul><ul><li>Energy exchange volumes </li></ul><ul><li>Emission levels (ton/GJ) </li></ul><ul><li>Economic Dimension </li></ul><ul><li>Total operating costs (M€/year) per area and for the whole system </li></ul><ul><li>Utilization factors of generation units </li></ul><ul><li>Emission savings </li></ul>
  14. 14. Fixed import (TenneT QCP) Flexible International Exchange <ul><li>Wind and hydro have both zero-marginal cost => implicit competition during their integration within the power system </li></ul><ul><li>Improvement of the model’s response from fixed import case (Quality Capacity Plan TenneT 2006-2012) to flexible international exchange in the simulations results </li></ul>4. Simulation Results – Technical Dimension
  15. 15. <ul><li>The system has clearly large amounts of zero-cost energy (wind & hydro) => capacity factors of conventional generation (especially base load) in all areas are decreased </li></ul><ul><li>The links between all areas are highly utilized =>Imports = Exports (no losses included – International exchange scheduling until moment of operation) </li></ul>4. Simulation Results – Technical Dimension
  16. 16. 4. Simulation Results – Economic Dimension <ul><li>The savings from wind power are much higher for isolated power systems </li></ul><ul><li>Approximately 35% of the total costs savings realized in the Netherlands </li></ul><ul><li>NORNED is a socio-economic factor of welfare </li></ul>
  17. 17. <ul><li>The marginal cost (MC) differences between neighboring power systems decrease with increasing transmission capacity </li></ul><ul><li>Increased transmission capacities cannot offer proportionally higher economic benefits (operational cost savings) </li></ul>4. Simulation Results – Economic Dimension <ul><li>Implementation of reservoir optimization strategy benefits both Norway and the Netherlands </li></ul><ul><li>The cost savings seems to increase if the price difference is taken into account when hydro energy is scheduled </li></ul>
  18. 18. 4. Simulation Results – Economic Dimension <ul><li>Wind power and NorNed lead to saving of significant amounts of CO2 Mtones </li></ul><ul><li>The decrease from 04-08 GW is due to the higher capacity factor of off-shore </li></ul><ul><li>Similar patterns are reported for SO2 and NOx </li></ul>
  19. 19. 5. Conclusions (1) Regarding the modeling approach: <ul><li>+ </li></ul><ul><li>Reasonable first order representation of the power system under study </li></ul><ul><li>Useful model for further development, valid approach </li></ul><ul><li>Capable of producing optimum UC-ED schedules with various inputs of: inflow variation, reservoir optimization strategies, interconnection scenarios, wind power penetrations </li></ul><ul><li>Simulation results explained well, show the correct operation of the power system </li></ul><ul><li>- </li></ul><ul><li>The hydro allocation is not optimized stochastically </li></ul><ul><li>For now the simulation results may be used only in a comparative basis and not in absolute values </li></ul><ul><li>The model cannot be validated </li></ul>
  20. 20. 5. Conclusions (2) <ul><li>Regarding the large-scale integration of wind power in the Netherlands: </li></ul><ul><li>Minimum-load situations during high wind – low load periods are expected to present the first technical integration limit for wind power </li></ul><ul><li>The high correlation between Germany and Dutch wind will pose one more limitation (0.73) </li></ul><ul><li>Wind power variations => integrated within the power system effectively => sufficient ramping capacity at all times </li></ul><ul><li>An implicit competition between wind power from the Netherlands and specifically hydro power from Norway may be observed </li></ul><ul><li>Wind and hydro resources are competing in the transmission level and the availability period of the resource </li></ul><ul><li>Hydro reservoir optimization strategies, favor the system in terms of operational cost and emission savings </li></ul><ul><li>Flexible international exchanges => flexible market design =>energy scheduled until the moment of operation => augments the integration of wind power => maximizes the link utilization </li></ul>
  21. 21. 6. Recommendations <ul><li>Herewith are presented the recommendations for further research: </li></ul><ul><li>For more accurate results => wind power of the Nordic countries for the future horizon should be estimated => taking into account correlations in time and space </li></ul><ul><li>Replace technology specific records included in the database, if generation unit specific data are available </li></ul><ul><li>Further model extension to include other important areas of the European power system such as Italy, Spain, Switzerland, Austria, Poland etc </li></ul><ul><li>For a more realistic model, reservoir optimization logic to all modelled areas having hydro power in their generation portfolio </li></ul><ul><li>For the decisions upon weekly hydro energy allocation in each area, a preprocessing tool should be developed </li></ul><ul><li>The validity of the modelled system may increase if transmission bottlenecks present in each operating area are effectively included </li></ul><ul><li>Validation of the total system => time-consuming / strenuous / necessary task; This research took some first steps on that direction => Validation should be furthermore continued </li></ul>
  22. 22. <ul><li>Thank you! </li></ul><ul><li>Questions??? </li></ul>Flexible international exchanges: a possible solution for large – scale wind power integration within the future power system

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