‘Powering Europe’ puts forward a well-argued case that there are no major technical barriers – but major economic benefits - to integrating large amounts of fuel- and pollution-free wind energy into Europe’s electricity grid. November 2010.
Reactive Power Sharing Droop Control Strategy for DG Units in an Islanded Mic...IJMTST Journal
The proposed method mainly includes two important operations: error reduction operation and voltage
recovery operation. The sharing accuracy is improved by the sharing error reduction operation, which is
activated by the low-bandwidth synchronization signals. However, the error reduction operation will result in
a decrease in output voltage amplitude. Therefore, the voltage recovery operation is proposed to compensate
the decrease., due to increasing the demand of electricity as well as rapid depletion of fossil fuels, and the
government policies on reduction of greenhouse gas emissions , renewable energy technologies are more
attractive and various types of distributed generation sources, such as wind turbine generators and solar
photo voltaic panels are being connected to low-voltage distribution networks. Micro grid is an integrated
system that contain in s distributed generation sources, control systems, load management, energy storage
and communication infrastructure capability to work in both grid connected and island mode to optimize
energy usage. The paper presents a advanced control technique for a micro grid system which works
efficiently under a decentralized control system.
Challenges and Benefits of Integrating the Renewable Energy Technologies into...Power System Operation
In the recent decent, renewable energy has been becoming one of the independent energy sources in human life, and it will be a major resources for the future generation of power. Today, some people tend to use renewable energy in their home or land such as solar or wind energy. Most of those have two inputs of the power source; the utility power supply and renewable energy power supply, so the integration of renewable technologies variable generation sources within Ac grid has been made, but this connection is not easily reachable. This paper will be reviewed the challenges and benefits of integrating renewable energy into power system grid. A review of the integration process will be introduced. Also, the paper will discuss some difficulties that face the integration such as power quality requirements that must be achieved to get this connection successfully. Forecasting of renewable energy such availability of power at any time, the amount of variation in power output, the speed of variation, and the location of RE source are other challenges that may obstruct the successful incorporation of renewable energy and the grid. In addition, the paper will briefly show a device that can be used in homes to achieve this connection. Finally, advantages of the integration for both the power utility and the green energy owner will be present, and how this integration can affect our environment. Solar energy and wind energy will be used in this paper as examples of renewable energy. Keywords: grid, green energy, integration, global warming, renewable energy RE
Introduction
Indian energy scenerio: 2015
Major incidents and motivation for micro grid
What is micro grid?
Basic architecture of micro grid
Classification of smart grid
Micro Grid operation modes
Importance and benefits
Challenges in micro grids
Smart grid priorities in India
Existing hybrid grid ventures in India and in world
Relevance of Smart Grid in India
Smart grid mission and vision for India
Conclusion
Large Scale Grid Integration of Renewable Energy Sources - Way ForwardSpark Network
A detailed report on the recommended methodology for the effective integration of Renewable Energy Projects with the Grid has been published by Central Electricity Authority.
Reactive Power Sharing Droop Control Strategy for DG Units in an Islanded Mic...IJMTST Journal
The proposed method mainly includes two important operations: error reduction operation and voltage
recovery operation. The sharing accuracy is improved by the sharing error reduction operation, which is
activated by the low-bandwidth synchronization signals. However, the error reduction operation will result in
a decrease in output voltage amplitude. Therefore, the voltage recovery operation is proposed to compensate
the decrease., due to increasing the demand of electricity as well as rapid depletion of fossil fuels, and the
government policies on reduction of greenhouse gas emissions , renewable energy technologies are more
attractive and various types of distributed generation sources, such as wind turbine generators and solar
photo voltaic panels are being connected to low-voltage distribution networks. Micro grid is an integrated
system that contain in s distributed generation sources, control systems, load management, energy storage
and communication infrastructure capability to work in both grid connected and island mode to optimize
energy usage. The paper presents a advanced control technique for a micro grid system which works
efficiently under a decentralized control system.
Challenges and Benefits of Integrating the Renewable Energy Technologies into...Power System Operation
In the recent decent, renewable energy has been becoming one of the independent energy sources in human life, and it will be a major resources for the future generation of power. Today, some people tend to use renewable energy in their home or land such as solar or wind energy. Most of those have two inputs of the power source; the utility power supply and renewable energy power supply, so the integration of renewable technologies variable generation sources within Ac grid has been made, but this connection is not easily reachable. This paper will be reviewed the challenges and benefits of integrating renewable energy into power system grid. A review of the integration process will be introduced. Also, the paper will discuss some difficulties that face the integration such as power quality requirements that must be achieved to get this connection successfully. Forecasting of renewable energy such availability of power at any time, the amount of variation in power output, the speed of variation, and the location of RE source are other challenges that may obstruct the successful incorporation of renewable energy and the grid. In addition, the paper will briefly show a device that can be used in homes to achieve this connection. Finally, advantages of the integration for both the power utility and the green energy owner will be present, and how this integration can affect our environment. Solar energy and wind energy will be used in this paper as examples of renewable energy. Keywords: grid, green energy, integration, global warming, renewable energy RE
Introduction
Indian energy scenerio: 2015
Major incidents and motivation for micro grid
What is micro grid?
Basic architecture of micro grid
Classification of smart grid
Micro Grid operation modes
Importance and benefits
Challenges in micro grids
Smart grid priorities in India
Existing hybrid grid ventures in India and in world
Relevance of Smart Grid in India
Smart grid mission and vision for India
Conclusion
Large Scale Grid Integration of Renewable Energy Sources - Way ForwardSpark Network
A detailed report on the recommended methodology for the effective integration of Renewable Energy Projects with the Grid has been published by Central Electricity Authority.
Exponential growth in the energy demand on account of rising population and economic growth,
increasing apprehensions of energy security coupled with climate change and global warming concerns are some
of the major drivers for pushing the renewable energy (RE) to the top of the energy portfolio. Among various
renewable energy resources, wind and solar PV systems are experiencing rapid growth since 2010. By the end of
2016, the world total capacity of wind power generation was 487 GW and that of solar PV was 303 GW,
aggregating to a penetration level of 4.0% and 1.5% respectively. Global renewable energy penetration till Dec.
2016, excluding conventional hydro share (of 16.6%) was only around 8.0%. However, many countries have set
target of 30% RE based electricity generation by 2030. India has an ambitious target of achieving 175 GW of RE
power by 2022, with 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro.
Power generation from renewables often takes place through distributed generation (DG). These units, mostly
located in remote locations, are not centrally planned or dispatched, and are usually connected to distribution grids
at LV or MV levels. In few cases, large capacity RE generation are also connected to transmission networks. As a
result, the power generation structure is moving from the large, centralized plants to a mixed generation pool
consisting of traditional large plants and many smaller DG units. Most of the RE generators have electrical
characteristics that are different from the synchronous machines. Since a large group of DG technologies use
power electronics converters for grid connectivity, they introduce many technical issues related to the operation,
control and protection of the power system, impacting generators, transmission system and consumer devices.
This paper presents some of the technical issues and challenges that need to be addressed for the effective
grid integration of RE based power generators so that eventually, our reliance on polluting and expensive fossilbased
hydro-carbon driven power generation can be reduced substantially.
Renewable Energy Sources are those energy sources which are not destroyed when their energy is harnessed. Human use of renewable energy requires technologies that harness natural phenomena, such as sunlight, wind, waves, water flow, and biological processes such as anaerobic digestion, biological hydrogen production and geothermal heat. Amongst the above mentioned sources of energy there has been a lot of development in the technology for harnessing energy from the wind.
PV to Grid Connected Cascaded T type Multilevel Inverter with Improved Harmon...ijtsrd
Multilevel inverters act as a promising solution for medium voltage, high power applications due to their modularity and reduced voltage stress across the switches. Cascaded T Bridge Multilevel Inverters CTB MLI are being considered as the best choice for grid connected Photovoltaic PV systems since they require several sources on the DC side. By means of MLI’s, high quality output with less harmonic distortion is obtained compared to a two level inverter. In this work, a comparative analysis of three levels of MLI’s is presented. Control scheme based on Sinusoidal Pulse Width Modulation SPWM is adopted due to its ease of implementation. More number of levels results in reduced THD and nearly sinusoidal output. Simulation is performed using MATLAB Simulink. Md Janish Alam | Mr. Sarvesh Pratap Singh "PV to Grid Connected Cascaded T-type Multilevel Inverter with Improved Harmonic Performance" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-1 , February 2023, URL: https://www.ijtsrd.com/papers/ijtsrd52629.pdf Paper URL: https://www.ijtsrd.com/engineering/electronics-and-communication-engineering/52629/pv-to-grid-connected-cascaded-ttype-multilevel-inverter-with-improved-harmonic-performance/md-janish-alam
Hybrid Power System is the integration of number of generating plants those are working together serve a particular region. They may be off grid or may not be.
Electrical Energy Storage, EES, is one of the key
technologies in the areas covered by the IEC.
EES techniques have shown unique capabilities
in coping with some critical characteristics of
electricity, for example hourly variations in demand
and price. In the near future EES will become
indispensable in emerging IEC-relevant markets in
the use of more renewable energy, to achieve CO2
reduction and for Smart Grids.
Historically, EES has played three main roles. First,
EES reduces electricity costs by storing electricity
obtained at off-peak times when its price is lower,
for use at peak times instead of electricity bought
then at higher prices. Secondly, in order to improve
the reliability of the power supply, EES systems
support users when power network failures occur
due to natural disasters, for example. Their third
role is to maintain and improve power quality,
frequency and voltage.
Regarding emerging market needs, in on-grid
areas, EES is expected to solve problems – such
as excessive power fl uctuation and undependable
power supply – which are associated with the use
of large amounts of renewable energy. In the offgrid
domain, electric vehicles with batteries are the
most promising technology to replace fossil fuels
by electricity from mostly renewable sources.
The Smart Grid has no universally accepted
defi nition, but in general it refers to modernizing
the electricity grid. It comprises everything
related to the electrical system between any
point of electricity production and any point of
consumption. Through the addition of Smart Grid
technologies the grid becomes more fl exible and
interactive and can provide real-time feedback. For
instance, in a Smart Grid, information regarding the
price of electricity and the situation of the power
reliability assessment of power distribution system.pptxAbduAdem9
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- 11,159 MW of wind power capacity (worth between €13 bn and €18 bn) was installed in the EU-28 during 2013, a decrease of 8% compared to 2012 installations.
- The EU power sector continues its move away from fuel oil and coal with each technology continuing to decommission more than it installs.
- The wind power capacity installed by the end of 2013 would, in a normal wind year, produce 257 TWh of electricity, enough to cover 8% of the EU's electricity consumption - up from 7% the year before.
Record offshore figures in 2013 conceal slow-down in new projects being developed. 418 offshore turbines came online in 2013 in Europe, making a record 1,567 Megawatts of new capacity. This is one-third more than the capacity installed in 2012. This makes a new total of 6,562 MW of offshore wind power - enough to provide 0.7% of the EU's electricity.
Why is an ambitious binding renewable energy target for 2030 essential for the wind industry today?
An ambitious renewables target shows investors there is a long-term market for wind energy, meaning they invest and the wind sector grows.
The EU must decide as soon as possible on an energy and climate policy framework for 2030. This is so investors continue to invest, wind energy continues to grow and deliver all its benefits, and the EU can meet its greenhouse gas reduction commitments of 80-95% by 2050 in the most cost-efficient way.
277 new offshore wind turbines, totalling 1,045 megawatts (MW), were fully grid connected in Europe during the first six months of 2013. This is double compared to the same period in 2012 when 523.2 MW were installed. In addition, 268 foundations were installed and 254 turbines erected, all during the first 181 days of the year.
In 2012, Europe’s wind energy industry was plunged into a crisis of regulatory uncertainty as governments, seeing renewables as an easy target for austerity measures, slashed or changed their support. Despite this, 2012 marked a historic milestone: reaching 100 GW of wind power capacity in the EU, meeting the power needs of 57 million households, equivalent to the output of 39 nuclear power plants – a remarkable success which was achieved during a period of extraordinary growth founded on firm political support.
Emissions from fossil fuel power plants and heavy industry cause climate change.The Emissions Trading System (ETS) puts a price on carbon emissions and prices fossil fuel electricity at its real cost.
Eastern Winds examines the frontier of wind power development in Europe. The report deals with the prospects for wind power in central and eastern Europe, tackles financing and provides an in-depth analysis of 12 emerging wind power markets. Eastern Winds is also a tool for decision-makers highlighting bottlenecks, regulatory challenges and providing policy recommendations. The report features: 1- In depth analysis of central and eastern European markets: first wave (Bulgaria, Romania, Turkey, Hungary, Poland) second wave and future markets covering - Power market overview, wind energy sector, supply chain, legal framework, opportunities and challenges. 2- Analysis of the wind power sector’s growth in the region - high growth in the more mature markets but boom and bust effect - and projections up to 2020. 3- Wind energy financing - Requirements of private banks when financing projects in emerging markets, profiles of International Financial Institutions active in the region and EU funding. 4- Policy recommendations
Published in February 2013 by the European Wind Energy Association, this is the most up-to-date information on wind energy. It includes facts and figures on statistics and targets, jobs and finance, technology, costs, subsidies and prices, R&D, environment and public opinion - all in an easy to digest format. For more wind energy facts, visit www.ewea.org
Europe installed and grid connected 293 offshore wind turbines in 2012 - more than one per working day. This brings the total to 1,662 turbines, in 55 offshore wind farms in ten European countries.
The EU wind energy sector installed 11.6 gigawatts (GW) of capacity in 2012, bringing the total wind power capacity to 105.6 GW, according to the 2012 annual statistics launched by the European Wind Energy Association (EWEA).
A report on EU electricity market rules, which must reflect the energy generation mix of the future and help usher in a flexible power system with a large-scale uptake of wind power and other renewable energy sources. The report recommends: 1- Creating a level playing field for renewable energy sources by tackling structural market deficits. 2-Creating functioning markets covering larger geographical regions within Europe so as to reduce the need to balance variable renewables like wind and solar 3- Developing intraday and balancing markets at national and cross-border levels 4- Creating new markets for 'grid support services', supporting the functioning of the grid to ensure a secure supply of electricity, instead of introducing market distorting capacity payments.
It is the European Commission’s job to propose a seven year ‘Multiannual Financial Framework’ budget to the Council and Parliament. The current proposal stands at €1,025 billion. This represents 1% of the EU’s gross domestic product – while national budgets are around 30-40% of national GDP.
The EU’s budget needs to reflect the high priority given to energy and climate commitments in EU policy in its 2020 climate and renewable energy targets. What is more, EU countries have been undergoing strict austerity measures. The next EU budget needs to be a “growth” budget. (September 2012).
The SEAENERGY 2020 final report highlights the fact that currently there is little in the way of maritime spatial planning (MSP) in Europe’s maritime states. However, Member States sharing the same sea basin could benefit from cooperation. The European Commission could provide MSP through a European Directive.
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Despite the ongoing economic crisis, Europe’s wind installations remained stable in 2011. And the industry’s long-term prospects remain bright in the light of the European Commission’s Energy Roadmap 2050 showing that wind energy would be the leading generating technology by 2050. (June 2012).
Green Growth examines the impact of wind energy on jobs and the economy in the EU. The wind energy industry increased its contribution to the EU’s gross domestic product (GDP) by 33% between 2007 and 2010. In 2010, the industry’s growth was twice that of the EU’s GDP overall, with the sector contributing €32 billion to an EU economy in slowdown. Contents: The sector created 30% more jobs from 2007 to 2010 to reach nearly 240,000, while EU unemployment rose by 9.6% . By 2020, there should be 520,000 jobs in the sector. The sector was a net exporter of €5.7 billion worth of goods and services in 2010. The sector avoided €5.71 billion of fuel costs in 2010. The sector invested 5% of its spending in R&D – three times more than the EU average. Wind turbine manufacturers commit around 10% of their total turnover to R&D.
‘Wind in our Sails’ is about offshore wind energy and provides a detailed analysis of the sector’s rapidly developing supply chain.
A growing industry with huge potential and massive developer interest, offshore is nonetheless facing a possible financing gap and an inadequate power grid. Questions answered in the report include;
How much capacity is currently installed?
Will there be enough turbines, foundations, cables, ships and ports.
How much is under construction, consented and in government concession zones?
How will the sector develop in the next few years?
(November 2011)
EWEA's report shows that in 2010, wind energy avoided as much as 28% of the EU’s Kyoto emissions reduction target, and will avoid as much as 31% of the EU-wide objective by 2020.
EWEA climate policy recommendations for the EU to 2020 include moving to a 30% domestic reduction target, tightening the emissions trading system to avoid oversupply and a low CO2 price and committing 100% of ETS auctioning revenue to finance climate mitigation. (November 2011).
The OffshoreGrid project proves the financial benefits of building a meshed European grid offshore and outlines two cost efficient designs.
Offshore grids, connecting North and Baltic Sea wind farms and electricity consumers, can be built substantially cheaper than expected. Building “hub connections” at sea instead of using cables to connect single wind farms individually to the shore will result in lower investment costs of 14 billion Euros. Additionally if these hub connections would be combined with an even more interconnected “meshed grid”, the necessary additional costs of 7 billion Euros would be compensated by 16 to 21 billion Euros of additional benefits over 25 years of grid operation. October 2011.
2011, just nine years away from 2020, was when the EU’s main climate change and renewable energy legislation expires. Right now – with the EU’s 2020 goals to increase the share of renewable energy in the overall energy mix to 20% and to cut carbon emissions by 20% – the EU is leading the world in terms of renewable energy deployment, exports and promotion.But how will we keep our leadership, retain our competitive edge, and keep cutting emissions from the power sector whilst continuing to create thousands of green jobs and billions of Euros in export revenue? Will decision-makers leave the EU in a policy vacuum post-2020? (August 2011).
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Powering Europe - Wind energy and the electricity grid
1. www.ewea.org Powering Europe: wind energy and the electricity grid
About EWEA
Powering Europe:
EWEA is the voice of the wind industry, actively promoting the utilisation of wind power in
Europe and worldwide. It now has over 650 members from almost 60 countries including
wind energy and the electricity grid
manufacturers with a 90% share of the world wind power market, plus component suppliers,
research institutes, national wind and renewables associations, developers, electricity
providers, finance and insurance companies and consultants. November 2010
80 Rue d’Arlon | B-1040 Brussels
Tel: +32 2 213 18 11 - Fax: +32 2 213 18 90
E-mail: ewea@ewea.org
A report by the European Wind Energy Association
2. Powering Europe:
wind energy and the electricity grid
Main authors (Vols 1-5): Frans Van Hulle (XPwind), Nicolas Fichaux (European Wind Energy Association - EWEA)
Main authors (Vol 6): Anne-Franziska Sinner (Pöyry), Poul Erik Morthorst (Pöyry), Jesper Munksgaard (Pöyry),
Sudeshna Ray (Pöyry)
Contributing authors: Christian Kjaer (EWEA), Justin Wilkes (EWEA), Paul Wilczek (EWEA), Glória Rodrigues (EWEA),
Athanasia Arapogianni (EWEA)
Revision and editing: Julian Scola (EWEA), Sarah Azau (EWEA), Zoë Casey (EWEA), Jan De Decker
and Achim Woyte (3E), EWEA’s Large Scale Integration Working Group
Project coordinators: Raffaella Bianchin (EWEA), Sarah Azau (EWEA)
Design: www.megaluna.be
Print: www.artoos.be
Cover photo: Getty
Published in November 2010
3. CONTENTS
chapter 1
Introduction: a European vision 5
2 Connecting wind power to the grid
55
1 Introduction 6 2.1 Problems with grid code requirements
for wind power 56
2 Turning the energy challenge 2.2 An overview of the present grid code
into a competitive advantage 8 requirements for wind power 57
2.3 Two-step process for grid code
2.1 Wind power and European electricity 9
harmonisation in Europe 60
2.2 Wind power in the system 11
2.3 All power sources are fallible 11 3 Summary 62
3 Main challenges and issues of integration 13
chapter 3
4 Integration of wind power in Europe: Power system operations
the facts 14
with large amounts of wind power 65
4.1 Wind generation and wind plants:
the essentials 15 1 Introduction 66
4.2 Power system operations
with large amounts of wind power 16 2 Balancing demand, conventional
4.3 Upgrading electricity networks – challenges generation and wind power 67
and solutions 17 2.1 Introduction 67
4.4 Electricity market design 19 2.2 Effect of wind power on scheduling of
4.5 The merit order effect of large-scale reserves 68
wind integration 20 2.3 Short-term forecasting to support
system balancing 70
5 Roles and responsibilities 22
2.4 Additional balancing costs 71
6 European renewable energy grid vision 3 Improved wind power management 73
2010-2050 28
4 Ways of enhancing wind power integration 76
chapter 2
5 Wind power’s contribution to firm power 79
Wind generation and wind plants:
the essentials 35 5.1 Security of supply and system adequacy 79
5.2 Capacity credit is the measure for firm
1 Wind generation and wind farms – wind power 80
the essentials 36
6 National and European integration studies
1.1 Wind power plants 36 and experiences 83
1.2 Variability of wind power production 42
6.1 Germany 84
1.3 Variability and predictability
6.2 Nordic region 85
of wind power production 48
6.3 Denmark 86
1.4 Impacts of large-scale wind power .
6.5 Ireland 88
integration on electricity systems 53
6.6 Netherlands 89
6.7 European Wind Integration Study 89
2
4. 7 Annex: principles of power balancing 3 Developments in the European electricity
in the system 92 market 123
3.1 Liberalised national markets 123
chapter 4 3.2 European integration assisted by
interconnection 124
Upgrading electricity networks –
3.3 Legal framework for further liberalisation
challenges and solutions 95
of the European electricity market 125
1 Drivers and barriers for network upgrades 96 4 Wind power in the European internal
electricity market 126
2 Immediate opportunities for upgrade:
4.1 Current market rules in EU Member
optimal use of the network 99
States 126
3 Longer term improvements to European 4.2 Economic benefits of proper market rules
transmission planning 101
for wind power integration in Europe 127
3.1 Recommendations from European studies 101 5 Summary 128
4 Offshore grids 106
4.1 Drivers and stepping stones 106
chapter 6
4.2 Technical issues 108 The merit order effect of large-scale
4.3 Policy issues 110 wind integration 131
4.4 Regulatory aspects 110
4.5 Planning 110 1 Background 132
5 Costs of transmission upgrades and who 2 Introduction 134
pays for what 112 2.1 Summary of literature survey 136
5.1 Cost estimates 112
5.2 Allocating grid infrastructure costs 113 3 Summary of findings 138
6 More active distribution networks 114 4 Methodology 140
4.1 Approach 140
7 A holistic view of future network 4.2 Modelling 142
development: smart grids 116
5 Analysis 144
8 Summary 117 5.1 Modelling results 144
5.2 Sensitivities 155
chapter 5
6 Conclusion 162
Electricity market design 119
7 Annex 164
1 Introduction 120
7.1 Assumptions in the model 164
7.2 Model description 167
2 Barriers to integrating wind power into
the power market 121
References, glossary and abbreviations 171
3
6. Photo: iStock
Introduction
In order to achieve EU renewable energy and CO2 emis- wind power faces barriers not because of the wind’s
sion reduction targets, significant amounts of wind en- variability, but because of inadequate infrastructure
ergy need to be integrated into Europe’s electricity sys- and interconnection coupled with electricity markets
tem. This report will analyse the technical, economic where competition is neither effective nor fair, with
and regulatory issues that need to be addressed in new technologies threatening traditional ways of think-
order to do so through a review of the available lit- ing and doing. Already today, it is generally considered
erature, and examine how Europe can move towards that wind energy can meet up to 20% of electricity de-
a more secure energy future through increased wind mand on a large electricity network without posing any
power production. serious technical or practical problems1.
The report’s main conclusions are that the capacity When wind power penetration levels are low, grid op-
of the European power systems to absorb significant eration will not be affected to any significant extent.
amounts of wind power is determined more by eco- Today wind power supplies more than 5% of overall EU
nomics and regulatory frameworks than by technical electricity demand, but there are large regional and
or practical constraints. Larger scale penetration of national differences. The control methods and backup
1
See IEA Task 25 final report on “Design and operation of power systems with large amounts of wind power”:
http://ieawind.org/AnnexXXV.html
6 Powering Europe: wind energy and the electricity grid
7. available for dealing with variable demand and supply be learned from countries with growing experience, as
that are already in place are more than adequate for outlined in this report. However, it is important that
dealing with wind power supplying up to 20% of elec- stakeholders, policy makers and regulators in emerg-
tricity demand, depending on the specific system and ing markets realise that the issues that TSOs in Spain,
geographical distribution. For higher penetration lev- Denmark and Germany are faced with will not become
els, changes may be needed in power systems and a problem for them until much larger amounts of wind
the way they are operated to accommodate more wind power are connected to their national grids.
energy.
The issues related to wind power and grid integration
Experience with wind power in areas of Spain, Den- mentioned in this report are based on a detailed over-
mark, and Germany that have large amounts of wind view of best practices, past experiences, descriptions
energy in the system, shows that the question as to and references to technical and economic assess-
whether there is a potential upper limit for renewable ments. The report collects and presents detailed facts
penetration into the existing grids will be an econom- and results, published in specialised literature, as well
ic and regulatory issue, rather than a technical one. as contributions from experts and actors in the sector.
For those areas of Europe where wind power devel- The aim is to provide a useful framework for the cur-
opment is still in its initial stages, many lessons can rent debates on integrating wind power into the grid.
chapter 1 INTRODUCTION: A EUROPEAN VISION 7
8. Photo: iStock
Turning the energy challenge
into a competitive advantage
Europe is importing 54% of its energy (2006), and decarbonise its energy mix in order to mitigate the risk
that share is likely to increase substantially in the to the climate, and use its indigenous renewable re-
next two decades unless a major shift occurs in Eu- sources to mitigate the risk to its energy supply.
rope’s supply strategy 2. Most of Europe’s oil comes
from the Middle East and the larger share of its gas Without reliable, sustainable, and reasonably priced
from just three countries: Russia, Algeria and Norway. energy there can be no sustainable long term growth.
The European economy relies on the availability of It is essential that Europe develops its own internal
hydrocarbons at affordable prices. Europe is running energy resources as far as possible, and that it strong-
out of indigenous fossil fuels at a time when fossil ly promotes energy efficiency. Europe has always led
fuel prices are high, as is the volatility of those prices. the way in renewable energy capacity development,
The combination of high prices and high volatility pres- particularly due to the implementation of directives
sures the energy markets, and increases the risk on 2001/77/EC and 2009/28/EC for the promotion of
energy investments, thus driving up energy prices in- the use of renewable energy sources in the European
cluding electricity prices. The continued economic and energy mix.
social progress of Europe will depend on its ability to
2
European Commission Communication ‘Second Strategic Energy Review: AN EU ENERGY SECURITY AND SOLIDARITY ACTION PLAN’
(SEC(2008) 2871).
8 Powering Europe: wind energy and the electricity grid
9. Europe has a particular competitive advantage in wind Thirty years of technological development means that
power technology. Wind energy is not only able to con- today’s wind turbines are a state-of-the-art modern
tribute to securing European energy independence technology: modular and quick to install. At a given
and climate goals in the future, it could also turn a site, a single modern wind turbine annually produces
serious energy supply problem into an opportunity for 200 times more electricity and at less than half the
Europe in the form of commercial benefits, technology cost per kWh than its equivalent twenty five years ago.
research, exports and employment. The wind power sector includes some of the world’s
largest energy companies. Modern wind farms deliver
The fact that the wind power source is free and clean grid support services – for example voltage regulation
is economically and environmentally significant, but – like other power plants do. Effective regulatory and
just as crucial is the fact that the cost of electricity policy frameworks have been developed and imple-
from the wind is fixed once the wind farm has been mented, and Europe continues to be the world leader
built. This means that the economic future of Europe in wind energy.
can be planned on the basis of known, predictable
electricity costs derived from an indigenous energy Wind currently provides more than 5% of Europe’s
source free of the security, political, economic and en- electricity 4, but as the cheapest of the renewable elec-
vironmental disadvantages associated with conven- tricity technologies, onshore wind will be the largest
tional technologies. contributor to meeting the 34% share of renewable
electricity needed by 2020 in the EU, as envisaged by
the EU’s 2009/28 Renewable Energy Directive.
2.1 Wind power and European EWEA’s “Baseline” scenario for 2020 requires in-
electricity stalled capacity to increase from 80 GW today to 230
GW in 2020. Wind energy production would increase
from 163 TWh (2009) to 580 TWh (2020) and wind en-
Due to its ageing infrastructure and constant demand ergy’s share of total electricity demand would increase
growth, massive investment in generation plant and from 4.2% in 2009 to 14.2% in 2020. EWEA’s ”High”
grids are required. Over the next 12 years, 360 GW of scenario requires installed capacity to increase from
new electricity capacity – 50% of current EU electric- 80 GW today to 265 GW in 2020. Wind energy pro-
ity generating capacity – needs to be built to replace duction would increase from 163 TWh (2009) to 681
ageing power plants to meet the expected increase TWh (2020) and wind energy’s share of total electricity
in demand3. Since energy investments are long-term demand would increase from 4.2% in 2009 to 16.7%
investments, today’s decisions will influence the en- in 2020.
ergy mix for the next decades. The vision presented
in this document shows that wind power meets all the On 7 October 2009, the European Commission pub-
requirements of current EU energy policy and simulta- lished its Communication on “Investing in the Develop-
neously offers a way forward in an era of higher fuel ment of Low Carbon Technologies5 (SET-Plan)”stating
and carbon prices. that wind power would be “capable of contributing up
to 20% of EU electricity by 2020 and as much as 33%
Wind energy technology has made major progress by 2030” were the industry’s needs fully met. EWEA
since the industry started taking off in the early 1980s. agrees with the Commission’s assessment. With
3
European Commission Communication ‘Second Strategic Energy Review: An EU Energy Security and Solidarity Action Plan’
(SEC(2008) 2871).
4
http://www.ewea.org/index.php?id=1665
5
European Commission (COM(2009) 519 final).
chapter 1 INTRODUCTION: A EUROPEAN VISION 9
10. Turning the energy challenge into a competitive advantage
Expected increase in EU’s share of electricity provided by wind power
50
0
2
30 50%
0
2
20 33%
0
2
20%
Source: EWEA
additional research efforts, and crucially, significant with 4.2%, biomass with 3.5% and solar with 0.4%.” It
progress in building the necessary grid infrastructure went on to conclude “that if the current growth rates
over the next ten years, wind energy could meet one of the above-mentioned Renewable Electricity Genera-
fifth of the EU’s electricity demand in 2020, one third tion Sources can be maintained, up to 1,600 TWh
in 2030, and half by 2050. (45 – 50%) of renewable electricity could be gener-
ated in 2020.”
Meeting the European Commission’s ambitions for
wind energy would require meeting EWEA’s high sce- Whilst the technology has been proven, the full poten-
nario of 265 GW of wind power capacity, including 55 tial of wind power is still to be tapped. Europe’s grid
GW of offshore wind by 2020. The Commission’s 2030 infrastructure was built in the last century with large
target of 33% of EU power from wind energy can be centralised coal, hydro, nuclear and, more recently,
reached by meeting EWEA’s 2030 installed capacity gas fired power plants in mind. The future high pen-
target of 400 GW wind power, 150 GW of which would etration levels of wind and other renewable electric-
be offshore. Up to 2050 a total of 600 GW of wind en- ity in the power system require decision makers and
ergy capacity would be envisaged, 250 GW would be stakeholders in the electricity sector to work together
onshore and 350 GW offshore. Assuming a total elec- to make the necessary changes to the grid infrastruc-
tricity demand of 4000 TWh in 2050 this amount of ture in Europe.
installed wind power could produce about 2000 TWh
and hence meet 50% of the EU’s electricity demand6. By 2020, most of the EU’s renewable electricity will be
produced by onshore wind farms. Europe must, how-
In June 2010 the European Commission’s Joint Re- ever, also use the coming decade to exploit its largest
search Centre highlighted that provisional Eurostat indigenous resource, offshore wind power. For this to
data showed that in “2009 about 19.9% (608 TWh) of happen in the most economical way Europe’s electric-
the total net Electricity Generation (3,042 TWh) came ity grid needs major investments, with a new, modern
from Renewable Energy sources7. Hydro power contrib- offshore grid and major grid reinforcements on land.
uted the largest share with 11.6%, followed by wind The current legal framework, with newly established
6
See EWEA’s report ‘Pure Power: Wind energy targets for 2020 and 2030’ on www.ewea.org
7
Renewable Energy Snapshots 2010. European Commission Joint Research Centre Institute for Energy
http://re.jrc.ec.europa.eu/refsys/pdf/FINAL_SNAPSHOTS_EUR_2010.pdf
10 Powering Europe: wind energy and the electricity grid
11. bodies ENTSO-E and ACER, the key deliverable of the 2.3 All power sources are
10-Year Network Development Plan, as well as the on-
fallible
going intergovernmental “North Seas Countries’ Off-
shore Grid Initiative” are all steps in the right direction
and the political momentum for grid development and Because the wind resource is variable, this is some-
the integration of renewable energy is evident. times used to argue that wind energy per se is not
reliable. No power station or supply type is totally re-
liable – all system assets could fail at some point.
In fact, large power stations that go off-line do so in-
2.2 Wind power in the system stantaneously, whether by accident, by nature or by
planned shutdowns, causing loss of power and an im-
Wind cannot be analysed in isolation from the other mediate contingency requirement. For thermal gener-
parts of the electricity system, and all systems differ. ating plants, the loss due to unplanned outages repre-
The size and the inherent flexibility of the power sys- sents on average 6% of their energy generation. When
tem are crucial for determining whether the system a fossil or nuclear power plant trips off the system
can accommodate a large amount of wind power. The unexpectedly, it happens instantly and with capacities
role of a variable power source like wind energy needs of up to 1,000 MW. Power systems have always had
to be considered as one aspect of a variable supply to deal with these sudden output variations as well as
and demand in the electricity system. variable demand. The procedures put in place to tack-
le these issues can be applied to deal with variations
Grid operators do not have to take action every time in wind power production as well, and indeed, they al-
an individual consumer changes his or her consump- ready are used for this in some countries.
tion, for example, when a factory starts operation in
the morning. Likewise, they do not have to deal with By contrast, wind energy does not suddenly trip off the
the output variation of a single wind turbine. It is the system. Variations in wind energy are smoother, be-
net output of all wind turbines on the system or large cause there are hundreds or thousands of units rather
groups of wind farms that matters. Therefore, wind than a few large power stations, making it easier for
power has to be considered relatively to the overall de- the system operator to predict and manage changes
mand variability and the variability and intermittency of in supply as they appear within the overall system.
other power generators. The system will not notice when a 2 MW wind turbine
shuts down. It will have to respond to the shut-down
The variability of the wind energy resource should only of a 500 MW coal fired plant or a 1,000 MW nuclear
be considered in the context of the power system, plant instantly.
rather than in the context of an individual wind farm
or turbine. The wind does not blow continuously, yet Wind power is sometimes incorrectly described as an
there is little overall impact if the wind stops blow- intermittent energy source. This terminology is mis-
ing in one particular place, as it will always be blow- leading, because on a power system level, intermittent
ing somewhere else. Thus, wind can be harnessed to means starting and stopping at irregular intervals,
provide reliable electricity even though the wind is not which wind power does not do. Wind is a technology of
available 100% of the time at one particular site. In variable output. It is sometimes incorrectly expressed
terms of overall power supply it is largely unimportant that wind energy is inherently unreliable because it is
what happens when the wind stops blowing at a single variable.
wind turbine or wind farm site.
Electricity systems – supply and demand - are inher-
ently highly variable, and supply and demand are influ-
enced by a large number of planned and unplanned
chapter 1 INTRODUCTION: A EUROPEAN VISION 11
12. Turning the energy challenge into a competitive advantage
factors. The changing weather makes millions of peo- electricity is nothing new; it has been a feature of the
ple switch on and off heating or lighting. Millions of system since its inception.
people in Europe switch on and off equipment that
demands instant power - lights, TVs, computers. Both electricity supply and demand are variable. The
Power stations, equipment and transmission lines issue, therefore, is not the variability or intermittency
break down on an irregular basis, or are affected by per se, but how to predict, manage and ameliorate var-
extremes of weather such as drought. Trees fall on iability and what tools can be utilised to improve effi-
power lines, or the lines become iced up and cause ciency. Wind power is variable in output but the varia-
sudden interruptions of supply. The system operators bility can be predicted to a great extent. This does not
need to balance out planned and unplanned chang- mean that variability has no effect on system opera-
es with a constantly changing supply and demand in tion. It does, especially in systems where wind power
order to maintain the system’s integrity. Variability in meets a large share of the electricity demand.
12 Powering Europe: wind energy and the electricity grid
13. Photo: Thinkstock
Main challenges and issues of integration
The levels of wind power connected to certain national In order to integrate wind power successfully, a number
electricity systems show that wind power can achieve of issues have to be addressed in the following areas:
levels of penetration similar to those of conventional • System design and operation (reserve capacities
power sources without changes to the electricity sys- and balance management, short-term forecasting
tem in question. In mid 2010, 80 GW of wind power of wind power, demand-side management, storage,
were already installed in Europe, and areas of high, contribution of wind power to system adequacy)
medium and low penetration levels can be studied • Grid connection of wind power (grid codes and power
to see what bottlenecks and challenges occur. Large- quality)
scale integration of both onshore and offshore wind • Network infrastructure issues (congestion manage-
creates challenges for the various stakeholders in- ment, extensions and reinforcements, specific is-
volved throughout the whole process from generation, sues of offshore, interconnection, smart grids)
through transmission and distribution, to power trad- • Electricity market design issues to facilitate wind
ing and consumers. power integration (power market rules)
Related to each of these areas are technical and insti-
tutional challenges. This report attempts to address
both of these dimensions in a balanced way.
chapter 1 INTRODUCTION: A EUROPEAN VISION 13
14. Photo: iStock
Integration of wind power in Europe:
the facts
The contribution from wind energy to power genera- inefficiencies and market changes, and are part of a
tion as foreseen by EWEA for 2020 (meeting 14-17% paradigm shift in power market organisation.
of the EU’s power demand) and 2030 (26-34.7%) is
technically and economically possible, and will bring The major issues surrounding wind power integration
wind power up to the level of, or exceeding, contri- are related to changed approaches in design and op-
butions from conventional generation types 8. These eration of the power system, connection requirements
large shares can be realised while maintaining a high for wind power plants to maintain a stable and reli-
degree of system security, and at moderate additional able supply, and extension and upgrade of the electri-
system costs. However the power systems, and their cal transmission and distribution network infrastruc-
methods of operation, will need to be redesigned to ture. Equally, institutional and power market barriers
achieve these goals. The constraints of increasing to increased wind power penetration need to be ad-
wind power penetration are not linked to the wind en- dressed and overcome. Conclusions on these issues,
ergy technology, but are connected to electricity infra- along with recommendations to decision-makers, are
structure cost allocation, regulatory, legal, structural presented below.
8
See EWEA’s report ‘Pure Power: Wind energy targets for 2020 and 2030’ on www.ewea.org
14 Powering Europe: wind energy and the electricity grid
15. 4.1 Wind generation and wind power production and site specific wind conditions.
plants: the essentials The significant economic benefits of improved accu-
racy justify investment in large meteorological obser-
vational networks.
State-of-the-art wind power technology with advanced
control features is designed to enhance grid perform- The way grid code requirements in Europe have been
ance by providing ancillary services. Using these pow- developed historically has resulted in gross inefficien-
er plant characteristics to their full potential with a cies for manufacturers and developers. Harmonised
minimum of curtailment of wind power is essential for technical requirements will maximise efficiency for
efficiently integrating high levels of wind power. Ad- all parties and should be employed wherever possi-
vanced grid-friendly wind plants can provide voltage ble and appropriate. However, it must be noted that
control, active power control and fault-ride-through ca- it is not practical to completely harmonise technical
pability. Emulating system inertia will become possi- requirements straight away. In an extreme case this
ble too. The economic value of these properties in the could lead to the implementation of the most stringent
system should be reflected in the pricing in proportion requirements from each Member State. This would
to their cost. not be desirable, economically sound, or efficient.
Wind power provides variable generation with predict- A specific European wind power connection code
able variability that extends over different time scales should be established within the framework of a bind-
(seconds, minutes, hours and seasons) relevant for ing network code on grid connection, as foreseen in
system planning and scheduling. The intra-hour vari- the Third Liberalisation Package. The technical basis
ations are relevant for regulating reserves; the hour for connection requirements should continuously be
by hour variations are relevant for load following re- developed in work carried out jointly between TSOs
serves. Very fast fluctuations on second to minute and the wind power industry.
scale visible at wind turbine level disappear when ag-
gregated over wind farms and regions. The remaining EWEA proposes a two step harmonisation approach
variability is significantly reduced by aggregating wind for grid codes: a structural harmonisation followed by
power over geographically dispersed sites and large a technical harmonisation. The proposed harmonising
areas. Electricity networks provide the key to reduction strategies are urgently needed in view of the signifi-
of variability by enabling aggregation of wind plant out- cant increase in foreseen wind power penetration and
put from dispersed locations. Wind plant control can should be of particular benefit to:
help control variability on a short time scale. • anufacturers, who will now be required only to de-
M
velop common hardware and software platforms
The latest methods for wind power forecasting help • Developers, who will benefit from the reduced costs
to predict the variations in the time scale relevant • System operators, especially those who have yet to
for system operation with quantifiable accuracy. Ag- develop their own grid code requirements for wind
gregating wind power over large areas and dispersed powered plants
sites and using combined predictions helps to bring
down the wind power forecast error to manageable The technical basis for the requirements should be
levels in the time frames relevant for system oper- further developed in work carried out jointly between
ation (four to 24 hours ahead). Well interconnected TSOs and the wind power industry. If the proposals
electricity networks have many other advantages. In can be introduced at European level by means of a
order to control the possible large incidental forecast concise network code on grid connection, it will set a
errors, reserve scheduling should be carried out in strong precedent for the rest of the world.
time frames that are as short as possible (short gate-
closure times), assisted by real time data on wind
chapter 1 INTRODUCTION: A EUROPEAN VISION 15
16. Integration of wind power in Europe: the facts
4.2 Power system operations The latest studies indicate that 1-15% of reserve ca-
with large amounts of wind power pacity is required at a penetration level of 10%, and
4-18% at a penetration level of 20%. These figures
are based on existing examples of high wind power
For power systems to increase their levels of wind pen- penetration levels (e.g. Spain, Denmark, Germany, Ire-
etration, all possible measures to increase flexibility land) and a range of system studies (including EWIS),
in the system must be considered (flexible generation, and provide an insight into the additional reserves re-
demand side response, power exchange through inter- quired for integrating the shares of wind power fore-
connection and energy storage) as well as an appro- seen for 2020. The large range in the numbers shows
priate use of the active power control possibilities of that many factors are at play, one of the most impor-
wind plants. Wind plant power output control can help tant aspects is the efficient use of forecasting tools.
manage variability for short amounts of time when it
is necessary for system security and when economi- The additional balancing costs at 20% wind power
cally justified. For the penetration levels expected up penetration are in the range of €2-4/MWh of wind
to 2020 there is no economic justification in build- power, mainly due to increased use of fuel reserves.
ing alternative large scale storage, although additional The available system studies show that there is no
storage capacity might be required after 2020. steep change in reserve requirements, or on deploy-
ment costs, with increasing penetration. An efficient
System operators should make adequate use of short- integration of large scale wind power (20% and up) is
term wind power forecasting in combination with short feasible when the power system is developed gradu-
gate closure times wherever possible to reduce the ally in an evolutionary way10.
need for additional reserve capacity at higher wind pow-
er penetration levels. Such reserve capacity will be re- Forecasting error can be mitigated by aggregating
quired to deal with the increased hour ahead uncer- plants over wider areas. Aggregating wind power over
tainty (load following reserves). Existing conventional European transmission networks joins up large areas
plants can often provide this capacity, if they are sched- and dispersed sites, and with the help of combined
uled and operated in a different way. In addition to using predictions, it can make wind power forecast error
the existing plants – including the slow ramping plants manageable for system operation (forecasts made
- in a more flexible way, More flexible generation (for ex- four-24 hours ahead). Efficient integration of wind
ample OCGT, CCGT and hydropower) should be favoured power implies installing forecasting tools in the con-
when planning the replacement of ageing plants9 and trol rooms of the system operators. The cost-benefit
considering the future generation mix, in order to en- ratio of applying centralised forecast systems is very
able the integration of large-scale variable generation. high because of the large reductions in the operation-
Providing better access to flexible reserves situated in al costs (balancing) of power generation brought about
neighbouring control areas through interconnectors is by reduced uncertainty. Forecasting needs to be cus-
also a way of improving the system’s flexibility. tomised to optimise the use of the system reserves
at various different time scales of system operation.
It is crucial that methods of incorporating wind power A way forward would be to incorporate wind power pre-
forecast uncertainties into existing planning tools and diction uncertainties into existing planning tools and
models are developed. The significant economic ben- models. Intensive RD is needed in this area.
efits of improved accuracy justify investment in large
wind observation networks. Additional RD efforts are Clustering wind farms into virtual power plants increas-
needed to develop these methods and to improve the es the controllability of the aggregated wind power for
meteorological data input for forecasting. optimal power system operation. Practical examples,
9
The European Commission says 360 GW of new capacity must be built by 2020 in its Communication ‘Second Strategic Energy
Review: An EU Energy Security and Solidarity Action Plan’ (SEC(2008) 2871).
10
Evolutionary: gradual development based on the existing system structure.
16 Powering Europe: wind energy and the electricity grid
17. such as in Spain, demonstrate that operating distrib- A truly European grid network would also not only over-
uted variable generation sources in a coordinated way come the present congestions on some of the main
improves the management of variability and enhances transmission lines but would also bring about savings
predictability. in balancing and system operation costs and enabling
a functioning internal electricity market.
A large geographical spread of wind power on a sys-
tem should be encouraged through spatial planning, Financing schemes for pan-European transmission
adequate payment mechanisms, and the establish- grid reinforcements should be developed at EU lev-
ment of the required interconnection infrastructure. el, as well as harmonised planning (including spatial
This will reduce variability, increase predictability and planning) and authorisation processes. The revised
decrease or remove instances of nearly zero or peak TEN-E Instrument in the form of a new “EU Energy Se-
output. curity and Infrastructure Instrument” should be better
funded and become functional and effective in adding
Wind power capacity replaces conventional generation crucial new interconnectors (for more information on
capacity in Europe. The capacity credit of large-scale TEN-E, see Chapter 4).
wind power at European level is in the order of 10%
of rated capacity at the wind power penetrations fore- With the increased legal separation between genera-
seen for 2020. Aggregating wind power from dispersed tors and network owners/operators, as stipulated in
sites using and improving the interconnected network the EU’s Third Liberalisation Package (2009/72/EC),
increases its capacity credit at European level. the technical requirements which govern the relation-
ship between them must be clearly defined. The in-
A harmonised method for wind power capacity credit troduction of variable renewable generation has often
assessment in European generation adequacy fore- complicated this process significantly, as its genera-
cast and planning is required, in order to properly val- tion characteristics differ from the directly-connected
ue the contribution of wind power to system adequacy. synchronous generators used in large conventional
This method would also constitute a basis for valuat- power plants.
ing wind power capacity in the future liberalised elec-
tricity market. Upgrading the European network infrastructure at trans-
mission and distribution level is vital for the emerging
single electricity market in Europe, and is a fundamen-
tal step on the way to the large-scale integration of
4.3 Upgrading electricity wind power. Better interconnected networks help ag-
networks – challenges and gregating dispersed (uncorrelated) generation leading
to continental smoothing, improving the forecasting
solutions ability, and increasing the capacity credit of wind power.
In a scenario with substantial amounts of wind power, For its 2030 wind and transmission scenario (279.6
the additional costs of wind power (higher installed GW of installed wind capacity), the TradeWind study
costs, increased balancing, and network upgrade) estimates a yearly reduction of € 1,500 million in the
could be outweighed by the benefits, depending on total operational costs of power generation as a result
the cost of conventional fossil fuels. The expected of interconnection upgrades. European studies like
continuing decrease in wind power generation costs TradeWind and EWIS have quantified the huge bene-
is an important factor. The economic benefits of wind fits of increasing interconnection capacities for all grid
become larger when the social, health and environ- users, and have identified specific transmission cor-
mental benefits of CO2 emission reductions are taken ridors to facilitate the implementation of large-scale
into account. wind power in Europe.
chapter 1 INTRODUCTION: A EUROPEAN VISION 17
18. Integration of wind power in Europe: the facts
The costs of upgrading of the European network There is a wide range of short term actions that can
should be socialised. Grid connection charges should optimise the use of the existing infrastructure and
be fair and transparent and competition should be transmission corridors. These will help the European
encouraged. transmission system to take up the fast-growing wind
power installed capacity, while maintaining high lev-
Major national studies in the UK, Germany and Den- els of system security. Dynamic line rating and rewir-
mark confirm that system integration costs are only ing with high-temperature conductors can significantly
a fraction of the actual consumer price of electricity, increase the available capacity of transmission corri-
ranging from € 0-4/MWh (consumer level), even un- dors. A range of power flow technologies (FACTS) and
der the most conservative assumptions. Integration improved operational strategies are suitable immedi-
costs at European level beyond penetration levels ate options to further optimise the utilisation of the
of about 25% are not expected to increase steeply. existing network. Some of these measures have al-
Their value depends on how the underlying system ready been adopted in the regions of Europe that have
architecture changes over time as the amount of in- large amounts of wind power.
stalled wind gradually increases, together with other
generating technologies being removed or added to A transnational offshore grid should be constructed to
the system. improve the functioning of the Internal Electricity Mar-
ket and to connect the expected increase in offshore
The main tool for providing a pan-European planning wind energy capacity. Such an offshore grid would re-
vision for grid infrastructure in line with the long-term quire investments in the order of €20 to €30 billion
EU policy targets should be the regularly updated ten- up to 2030.
year network development plan (TYNDP) drafted by the
newly established body of European TSOs (ENTSO-E). Such an offshore grid should be built in stages, start-
The TYNDP should reflect the Member States’ wind ing from TSOs’ existing plans and gradually moving
power generation forecasts, as provided in their Na- to a meshed network. Demonstration projects con-
tional Renewable Energy Action Plans, realistically by necting offshore wind farms to two or three countries
providing sufficient corridors of adequate capacity. should be built in the short term to test concepts and
Technologies such as underground HVDC should be develop optimal technical and regulatory solutions.
used where it can accelerate the implementation. The consequences for the onshore grid in terms of
reinforcement in the coastal zones should be consid-
Accelerated development and standardisation of ered at an early stage.
transmission technology, more specifically multi-termi-
nal HVDC VSC is necessary to avoid unnecessary de- The creation of the necessary infrastructure for de-
lays. Neither the proper regulatory conditions, nor any ploying offshore wind power should be coordinated at
attractive legal incentives for multinational transmis- European level. The visions developed by EWEA – of
sion are in place. 40 GW offshore wind energy capacity in 2020 and 150
GW by 2030 - and backed up by projects like Offsho-
Significant barriers to expansion of the network to- reGrid11 should be taken forward and implemented by
wards a truly pan-European grid exist, including public the European Commission and ENTSO-E. A suitable
opposition to new power lines (causing very long lead business model for investing in the onshore and off-
times), high investment costs and financing needs shore power grids and interconnectors should be rap-
and the absence of proper cost allocation and recov- idly introduced based on a regulated rate of return for
ery methods for transmission lines serving more than investments.
just the national interest of a single country.
11
http://www.offshoregrid.eu
18 Powering Europe: wind energy and the electricity grid
19. With the very high shares of wind power and renewa- presented in the European Wind Initiative, which has a
ble generation expected in the future, the entire trans- budget of €6 billion, (the Wind Initiative is one of the
mission and distribution system has to be designed European Industrial Initiatives which constitute part of
and operated as an integrated unit, in order to opti- the Strategic Energy Technology Plan)12. In the field of
mally manage more distributed and flexible generation grid integration, TPWind has set up a dialogue with an-
together with a more responsive demand side. other Industrial Initiative: the Grid Initiative.
Innovative and effective measures need to be de- Research priorities for wind integration are:
ployed such as ‘smart grids’, also termed ‘active net- • Solutions for grid connections between offshore
works’, ‘intelligent grids’ or ‘intelligent networks’, and wind farms and HVAC and HVDC grids, and the de-
assisted with adequate monitoring and control meth- velopment of multi-terminal HV DC grids
ods to manage high concentrations of variable gen- • Wind plants that can provide system support, and
eration, especially at distribution level. An important novel control and operating modes such as virtual
research task for the future is to investigate the use power plants
of controlled, dynamic loads to contribute to network • Balancing power systems and market operation
services such as frequency response. in view of design of future power systems with in-
creased flexibility
Proper regulatory frameworks need to be developed to • ransmission technologies, architecture and opera-
T
provide attractive legal conditions and incentives to en- tional tools
courage cross-border transmission. This can be helped • More active distribution networks and tools for dis-
by building on the experience of “European Coordina- tributed renewable management and demand-side
tors”, which were appointed to facilitate the implemen- response
tation of the most critical identified priority projects • Tools for probabilistic planning and operation, in-
within the European TEN-E, particularly where the Co- cluding load and generation modelling, short-term
ordinator has a clearly defined (and limited) objective. forecasting of wind power and market tools for bal-
ancing and congestion management13.
European energy regulators and ENTSO-E could imple-
ment regional committees to ensure regional/trans
national infrastructure projects are swiftly completed.
Furthermore, the set-up of one central authorising 4.4 Electricity market design
body within a Member State in charge of cross-border
projects is worth exploring. Imperfect competition and market distortion are bar-
riers to the integration of wind power in Europe. Ex-
There is a great need for further short-term and long- amples of major imperfections are the threshold to
term RD in wind energy development at national and market access for small and distributed wind power
European level, in order to develop onshore and off- generators and the lack of information about spot
shore technology even more, enable large scale re- market prices in neighbouring markets during the al-
newable electricity to be integrated into Europe’s ener- location of cross-border capacity. In order for a power
gy systems and maintain European companies’ strong market to be truly competitive, sufficient transmission
global market position in wind energy technology. An capacity is required between the market regions.
appropriate framework for coordinating the identifi-
cation of the research needs has been established The European Commission together with relevant
by the EU’s Wind Energy Technology Platform (TP- stakeholders (TSOs, regulators, power exchanges,
Wind). The research needs for the text ten years are producers, developers and traders) must enforce a
12
http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm
13
Example of such tools can be found in the market model under development in the FP7 project OPTIMATE:
http://www.optimate-platform.eu/
chapter 1 INTRODUCTION: A EUROPEAN VISION 19
20. Integration of wind power in Europe: the facts
comprehensive EU market integration strategy by im- power demand - respond to price signals, fuel price
plementing a target model and roadmap covering for- risk and carbon price risk. Ongoing initiatives at re-
ward, day-ahead, intraday and balancing markets as gional level such as the Nordpool market, the Penta-
well as capacity calculation and governance issues. lateral Energy Forum, the Irish All-Island market and
Regional Initiatives should converge into a single Eu- the Iberian MIBEL are all helping the integration of big-
ropean market by 2015, as per the European Commis- ger amounts of variable renewables. The “North Seas
sion’s target 14. Furthermore, a single central auction Countries’ Offshore Grid Initiative” offers a way to cre-
office could be established in the EU. ate a North Sea market enabling the integration of
large amounts of offshore wind power.
Further market integration and the establishment of
intra-day markets for balancing and cross border trade Redesigning the market in order to integrate maximum
are highly important for integrating large amounts of quantities of variable wind power would yield signifi-
offshore wind power. cant macro-economic benefits, through the reduction
of the total operational cost of power generation. Intra-
A suitable legal and regulatory framework is required day rescheduling of generators and application of in-
to enable efficient use of the interconnectors between tra-day wind power forecasting for low reserve require-
participating countries. The adoption of the Third Lib- ments results in savings in the order of €250 million
eralisation Package in 2009 should accelerate the per year. The annual savings due to rescheduling pow-
much needed reform of EU electricity markets and en- er exchange for international trade would be in the or-
courage the take-up of higher amounts of renewables, der of €1-2 billion 15.
notably through the clear list of tasks it provides for • Transparent and regularly updated information should
TSOs and energy regulators. Network codes estab- be available to all market players in order to analyse
lished in consultation with the market stakeholders the best market opportunities. It will not only ensure
should allow wind energy and other variable renewa- fairer market behaviour, but also provide for the best
bles to be integrated on a level playing field with other possible imbalance management in a market-based
forms of generation. and non-discriminatory way.
• Adequate mechanisms for market monitoring should
Power systems with wind energy penetration levels of be put in place. Consequently, the authorities must
10-12% of gross electricity demand also need slow- have full access to all relevant information so they can
er power plants (with start-up times above one hour) monitor market activities and implement any ex-post
to participate in the intra-day rescheduling, as well as investigations and necessary measures to mitigate
more flexible plants. market power or prevent it potentially being abused.
An international exchange of reserves in Europe would
bring further advantages. The trade-off between sav-
ing money on flexible power plants and sharing of re-
serves across borders should be investigated with 4.5 The merit order effect of
dedicated models.
large-scale wind integration
The ongoing market integration across Europe - nota-
bly the establishment of regional markets - is an im- When there is a lot of wind power on the system, elec-
portant building block for a future power system char- tricity wholesale market prices go down due to the so-
acterised by flexible and dynamic electricity markets, called merit order effect (MOE). Results from power
where market participants - including at the level of market modelling show that with the expected wind
14
See for example: EU Commissioner for Energy Oettinger’s speech in March 2010: ‘An integrated and competitive electricity market:
a stepping stone to a sustainable future’ (SPEECH/10/102).
15
See the TradeWind project report: ‘Integrating Wind: Developing Europe’s power market for the large-scale integration of wind power’
(www.trade-wind.eu).
20 Powering Europe: wind energy and the electricity grid
21. power capacity reaching 265 GW in 2020, the MOE the MOE has been calculated at €41.7 billion/year in
would amount to €11/MWh, reducing the average 2020. But this should not be seen as a purely socio-
wholesale power price level from €85.8/MWh to €75/ economic benefit. A certain volume of this is redistrib-
MWh. The total savings due to the MOE has been es- uted from producer to consumer because decreased
timated at €41.7 billion/year in 2020. The merit or- prices mean less income for power producers. Cur-
der effect will be further influenced by fuel and carbon rently, only the long-term marginal generation which is
prices 16. replaced by wind has a real economic benefit, and this
should be contrasted to the public support for extend-
However, this figure assumes a fully functioning mar- ed wind power generation.
ket. It also includes the long-term investments fore-
cast and is therefore based on the long-term market The sensitivity analysis resulted in an increase of the
equilibrium. Simulated generation volumes in 2020 merit order effect by €1.9/MWh when fossil fuel pric-
require economic feasibility with regards to long run es (gas, coal and oil) are increased by 25%. In the
marginal costs. Wind capacity replaces the least cost High fuel price case, wind power makes the power
efficient conventional capacities so that the system is price drop from €87.7/MWh in the Reference scenar-
in equilibrium. This shift in the technology mix is the io to €75/MWh in the Wind scenario. Comparing the
main reason for the observed merit order effect. resulting merit order effect in the High fuel case of
€12.7/MWh to the Base case results of €10.8/MWh,
In reality this might not always happen. Power market the 25% higher fuel price case gives a merit order ef-
bids are based on short run marginal costs, plants fect that is 17.5% higher.
that are not cost efficient might be needed in extreme
situations, for example when there is a lot of wind The study showed that fuel prices have a major influ-
power on the system. The short-term effects of wind ence on power prices and marginal cost levels. The mer-
power are mostly related to the variability of wind pow- it order effect has been mostly explained by the differ-
er. The responding price volatility due to increased ence in the technology capacity and generation mix in
wind power stresses the cost efficiency of wind power the various scenarios, especially the differences in the
generation. And in the real world, this would lead to a development and utilisation of coal and gas power tech-
smaller merit order effect than analysed in the future nologies. Investigating fuel price differences is therefore
optimal market equilibrium. highly relevant. However, even stronger impacts on the
merit order effect might be observed by changing the
Consequently, the results of the study have to be con- relative price differences of gas and coal price levels.
sidered carefully, especially considering the assumed
future capacity mix, which includes a lot of uncertain- The study proved that carbon market assumptions
ties. Moreover, results should not be directly compared and especially the resulting carbon price level will be
to recent literature, which usually estimate the short a very important variable for the future power market
term price effects of wind power. Here the market is not and its price levels. Regarding the sensitivity of the as-
always in equilibrium and actual price differences and sumed GHG emissions reduction target, the analysis
the merit order effect might therefore be very different. illustrated higher equilibrium prices for the 30% reduc-
tion case than for the 20% reduction base case.
Moreover, the study estimates the volume merit order
effect referring to the total savings brought about due However, the results of the sensitivity analysis do very
to wind power penetration during a particular year. As- much depend on the assumptions for future abate-
suming that the entire power demand is purchased at ment potential and costs in all EU ETS sectors, as well
the marginal cost of production, the overall volume of as in the industrial sectors.
16
See Chapter 6 of this report for more information.
chapter 1 INTRODUCTION: A EUROPEAN VISION 21
22. Photo: Vestas
Roles and responsibilities
Wind power is capable of supplying a share of Euro- • Power sector: transmission and distribution system
pean electricity demand comparable to, or exceeding, operators and owners, power producers, energy
the levels currently being met by conventional tech- suppliers, power engineering companies, RD insti-
nologies such as fossil fuels, nuclear and large hydro tutes, sector associations
power. Such penetration levels, however, would require • National and European energy regulation authorities
cooperation among decision makers and stakeholders • Public authorities and bodies: energy agencies, min-
in the electricity sector in order to make the necessary istries, national and regional authorities, European
changes to the European grid infrastructure, which institutions, the Agency for the Cooperation of En-
was developed with traditional centralised power in ergy Regulators (ACER) and the European Network
mind. Stakeholders in this process should include: of Transmission System Operators for Electricity
• Wind energy sector: wind turbine and component (ENTSO-E)
manufacturers, project developers, wind farm opera- • Users: industrial and private electricity consumers,
tors, engineering and consulting companies, RD in- energy service providers
stitutes and national associations
22 Powering Europe: wind energy and the electricity grid
23. Table 1: Roles and responsibilities Stakeholders
Wind TSOs and EU and EU and Traders,
industry power national national market
sector energy govern- operators,
regulators ments users
System Introduce increased flexibility as a major design ✓ ✓ ✓ ✓
design and principle (flexible generation, demand side
operation
management, interconnections, storage etc.). In
addition to using the existing plants – including
the slow base load plants - in a more flexible way
with increasing penetration, flexible generation (for
example OCGT, CCGT and hydropower) should be
favoured when planning the replacement of ageing
plants and considering the future generation mix,
in order to enable the integration of large-scale
variable generation. Providing better access
to flexible reserves situated in neighbouring
control areas through power exchange should be
encouraged as a way of improving the system’s
flexibility.
Use short-term wind power forecasting in ✓ ✓ ✓ ✓
combination with short gate-closure times
wherever possible to reduce the need for extra
reserve capacity at higher wind power penetration
levels. Install forecasting tools in the control room
of system operators. In order to control any major
incidental forecast errors, reserve scheduling
should be done in timeframes that are as short
as possible (short gate-closure times), assisted by
real-time data on wind power production and site
specific wind conditions.
Develop ways of incorporating wind power ✓ ✓
uncertainties into existing planning tools and
models. Deploy large wind observation networks.
Develop and implement harmonised method for ✓ ✓ ✓ ✓
wind power capacity value assessment for use in
generation adequacy forecast and planning.
chapter 1 INTRODUCTION: A EUROPEAN VISION 23
24. Roles and responsibilities
Stakeholders
Wind TSOs and EU and EU and Traders,
industry power national national market
sector energy govern- operators,
regulators ments users
Grid Two-step harmonisation of network connection ✓ ✓ ✓ ✓
connection requirements for wind power: structural and
requirements
technical harmonisation.
Specific wind power code in the framework of the ✓ ✓ ✓
European network code.
Further develop technical basis for connection ✓ ✓
requirements jointly between TSOs and wind
industry.
24 Powering Europe: wind energy and the electricity grid
25. Stakeholders
Wind TSOs and EU and EU and Traders,
industry power national national market
sector energy govern- operators,
regulators ments users
Grid Reinforce and expand European transmission ✓ ✓ ✓
infrastructure grids to enable predicted future penetration
upgrade
levels of wind power. The regularly updated
TYNDP drafted by the European TSOs (ENTSO-E)
should reflect the realistic wind power generation
forecasts by providing sufficient traces of
adequate capacity. New technologies such as
underground HV DC VSC should be used where it
can accelerate the implementation.
Optimise the use of the existing infrastructure ✓
and transmission corridors through dynamic line
rating, rewiring with high-temperature conductors,
power flow control devices, FACTS and improved
operational strategies.
Build a transnational offshore grid in stages, ✓ ✓ ✓ ✓
starting from existing TSO plans and gradually
moving to meshed networks. Build demonstration
projects of combined solutions to test the
technical and regulatory concepts.
Accelerated development and standardisation of ✓ ✓ ✓
transmission technology, notably meshed HV DC
VSC and related methods.
Deploy innovative and effective measures such ✓ ✓ ✓
as ‘smart grids’, also termed ‘active networks’,
‘intelligent grids’ or ‘intelligent networks’, assisted
by adequate monitoring and control methods to
manage high concentrations of variable generation
especially at distribution level.
Develop and deploy proper regulation for ✓ ✓ ✓
multistate transmission.
Encourage large geographical spread of wind ✓ ✓ ✓ ✓
power through planning and incentives and
interconnection.
Socialise costs of transmission and distribution ✓ ✓ ✓ ✓
upgrades.
Recognise the benefits brought about by an ✓ ✓ ✓ ✓ ✓
improved European grid: savings in balancing
costs and improved market functioning.
chapter 1 INTRODUCTION: A EUROPEAN VISION 25
26. Roles and responsibilities
Stakeholders
Wind TSOs and EU and EU and Traders,
industry power national national market
sector energy govern- operators,
regulators ments users
Power Allow intra-day rescheduling of generation, ✓ ✓ ✓ ✓ ✓
market interconnectors and establish cross-border day
design
ahead and intraday markets all over Europe.
Pursue further market integration in Europe. ✓ ✓ ✓ ✓
Establish implicit capacity auctions of
interconnectors.
Participation of all generation – also slower plants ✓ ✓ ✓ ✓
– in intraday rescheduling.
Allow for international exchange of reserve ✓ ✓ ✓
capacity.
Establish an EU market integration strategy ✓ ✓ ✓ ✓
by implementing a target model and roadmap
covering forward, day-ahead, intraday and
balancing markets as well as capacity calculation
and governance issues. Regional initiatives
should converge into a single European market
by 2015. A single central auction office could be
established in the EU.
Make transparent and regularly updated ✓ ✓ ✓ ✓
information available to all market players in order
to analyse the best market opportunities.
Adequate mechanisms for market monitoring ✓ ✓ ✓
should be put in place. Consequently, the
competent authorities must have full access to all
relevant information in order to monitor activities
and implement any ex-post investigations and
necessary measures to mitigate market power or
prevent potential abuse of it.
26 Powering Europe: wind energy and the electricity grid
27. Stakeholders
Wind TSOs and EU and EU and Traders,
industry power national national market
sector energy govern- operators,
regulators ments users
Institutional Develop and deploy financing schemes for pan- ✓ ✓ ✓
and European transmission.
regulatory
aspects Develop harmonised planning and authorisation ✓ ✓
processes that fully support TEN-E and related
mechanisms to enhance coordination between
Member States on cross-border planning.
Coordination of initiatives to build an offshore ✓ ✓ ✓ ✓
grid. Develop business model for investing in the
offshore grid.
Establish regional committees and specific ✓ ✓ ✓
authorising bodies to support regional/
transnational infrastructure projects.
Establish clear legal framework for cross-border ✓ ✓ ✓ ✓
transmission management through binding
framework guidelines and network codes
Research Solutions for connecting offshore wind farms to ✓ ✓ ✓
Development HVAC and DC lines.
Wind plant capabilities for providing system ✓ ✓ ✓
support, and novel control and operating modes
such as a Virtual Power Plant.
Balancing power systems and market operation ✓ ✓ ✓
in view of future power systems with increased
flexibility.
Transmission technologies, architecture and ✓ ✓ ✓
operational tools.
More active distribution networks and tools for ✓ ✓ ✓ ✓
distributed renewable management and demand-
side response.
Tools for probabilistic planning and operation, ✓ ✓ ✓ ✓
including load and generation modelling, short-
term forecasting of wind power and market tools
for balancing and congestion management.
chapter 1 INTRODUCTION: A EUROPEAN VISION 27
28. Photo: Thinkstock
European renewable energy grid vision
2010-2050
Objective The grid map is made up of maps for five different
years: 2010, 2020, 2030, 2040 and 2050. Each of
The grid map depicts the evolution of wind energy and these maps shows the main production areas and
other renewables in the European power system up consumption areas and the corresponding dominant
to 2050. The map identifies the main renewable elec- power flows along the transmission corridors. In this
tricity production areas and consumption areas, and way, the reader can analyse the evolution of the main
shows where the major power corridors would be situ- power generation capacities, the principle transmis-
ated in an integrated electricity market. sion routes, and the dominant power flows of specific
generation sources along those transmission routes
The map aims to outline the way to a renewable, fully over time.
integrated European power system by 2050, provid-
ed that the necessary grid infrastructure is developed
and the market is fully integrated.
28 Powering Europe: wind energy and the electricity grid
29. Legend
The five countries with the highest electricity con-
The grid maps depict the evolution of renewable ener- sumption were identified and a corresponding icon
gy in the European power system up to 2050. was added according to their approximate higher con-
sumption area18.
Production sources
The main on-land and offshore renewable energy pro- Main consumption area
ducing areas are shown. Each source is represented
by a different icon.
Onshore and offshore wind Power corridors
The main transmission corridors19 are coloured ac-
Hydro cording to the dominant renewable energy source flow-
ing across them; this does not mean that there are no
other power production sources using those transmis-
Ocean
sion routes.
Biomass Power corridor
Solar
In order to indicate the general location of the genera-
tion sources, shaded bubbles have been incorporated
into the map. These bubbles vary in size according
to the relevance and penetration level of the corre-
sponding generation source in the different areas and
timeframes17.
Wind energy production area
Hydro energy production area
Ocean energy production area
Biomass energy production area
Solar energy production area
17
T
he main sources of information were EWEA, OffshoreGrid, and the Greenpeace-EREC [R]evolution scenarios. Based on these
sources, 3E identified the main types of power generation, their locations and possible penetration levels for the different years.
18
D
ata from European Commission, Directorate-General for Energy, EU Energy Trends to 2030 – Update 2009, ICCS-NTUA for EC, 4
August 2010.
19
T
ransmission lines were based on the current UCTE map, the ENTSO-E ten year development plan, and EWEA’s 20 Year Offshore
Network Development Master Plan.
chapter 1 INTRODUCTION: A EUROPEAN VISION 29
30. European renewable energy grid vision 2010-2050
European renewable energy grid This map shows the current role of renewable energy
sources in a fragmented power system. After hydro, wind
2010
is the largest renewable power generation source,with
around 4.8% of EU electricity demand. Wind energy al-
ready has a considerable share in the Northern German,
Danish and Iberian power systems.
Wind energy production area
Hydro energy production area
Ocean energy production area
Biomass energy production area
Solar energy production area
Main consumption area
Power corridor
Design: www.onehemisphere.se
30 Powering Europe: wind energy and the electricity grid
31. European renewable energy grid The map for 2020 – the target year of the 2009 Renewable
Energy Directive - shows the increasingly important role of re-
2020
newable energy. In 2020, 230 GW of wind power is expected
to supply between 14 and 18% of EU electricity demand, of
which 40 GW would be offshore. Wind energy becomes more
significant in the North Sea neighbouring countries, the Baltic
Sea and in the Iberian Peninsula.
Wind energy production area
Hydro energy production area
Ocean energy production area
Biomass energy production area
Solar energy production area
Main consumption area
Power corridor
Design: www.onehemisphere.se
chapter 1 INTRODUCTION: A EUROPEAN VISION 31
32. European renewable energy grid vision 2010-2050
European renewable energy grid Renewable energy significantly increases from 2020 to
2030. This map shows the dominant role of wind power
2030
in the North Sea neighbouring countries, much facilitated
by the development of the North Sea offshore grid.
It also represents the growing role of photovoltaic (PV)
and concentrated solar power (CSP) in the Southern
European and biomass in Eastern European systems.
Wind energy production area
Hydro energy production area
Ocean energy production area
Biomass energy production area
Solar energy production area
Main consumption area
Power corridor
Design: www.onehemisphere.se
32 Powering Europe: wind energy and the electricity grid