Downloaded 10 times
![www.iea-retd.org 14
..include demand & storage
..allow VRE to participate
..improve sophistication of markets
..develop new products (inertia, ramping
etc.)
..[capacity market]
Sophisticated system services market &
products reward flexibility
Integrating Variable Renewable Energy
SYSTEM SERVICES](https://image.slidesharecdn.com/iea-retdre-integrationivre20150311-150803103424-lva1-app6892/85/IEA-RETD-RE-INTEGRATION-20150311-14-320.jpg)
More Related Content
Similar to IEA-RETD RE-INTEGRATION 20150311
IEA-RETD RE-INTEGRATION 20150311
- 1. Integrating Variable Renewable Energy AndrewConway 18 March 2015
- 2. www.iea-retd.org 2 AGENDA • Definitions,scope & approach • Challenges & context • Frame-conditions – integration measures • Case studies • Conclusions & recommendations Integrating Variable Renewable Energy
- 3. www.iea-retd.org 3 SCOPE &AIMS • To assess the relative applicability and effectiveness of measures to integrate variable renewable energy • Based on actual interventions to date across 9 jurisdictions • Drawing out lessons for policy makers Integrating Variable Renewable Energy Ontario CAISO Alberta ERCOT Ireland Great Britain Spain Denmark Germany Hokkaido Alberta Ontario The focus of the study has been on measures that can be applied in market based jurisdictions
- 4. www.iea-retd.org 4 KEY DEFINITIONS •Variable Renewable Energy (VRE) • Renewables technologies that rely on fluctuations in short-term availability of resource, includes: Wind, Solar, Tidal, Hydro run-of-river and Wave • Flexibility • Ability of generator, load, or storage to vary power output or demand in a controlled manner • VRE Integration • Incorporation of VRE into a power system Integrating Variable Renewable Energy
- 5. www.iea-retd.org 5 CHALLENGES FORPOLICY MAKERS – new policies will need to be implemented 1. Ensuring VRE deployment is system friendly, where possible. 2. Making the most of the current installed flexibility. 3. Encouraging investment in the required amount of flexibility. 4. Making the most of scarce grid resources. Integrating Variable Renewable Energy
- 6. www.iea-retd.org 6 High windand solar High wind Mid VRE penetration Low VRE penetration W M di Hi fe M High wind and solar High wind Mid VRE penetration Low VRE penetration Strongly interconnected Weakly interconnected Synchronously Independent High flexibility Low flexibility Well distributed Mostly distributed High concentration in few areas Mostly in one area Mid flexibility High wind and solar High wind Mid VRE penetration Low VRE penetration Str int We int Syn Ind Well distributed Mostly distributed High concentration in few areas Mostly in one area Integrating Variable Renewable Energy CONTEXT – jurisdictions have different challenges and opportunities depending on their context Source: Mott MacDonald and system operators
- 7. www.iea-retd.org 7 $ Dispatch &market sophistication Grid code Grid representation VRE incentives Interconnector management Regulator incentives System services Use of forecasting * The broad suit of regulations, market design and rules, operational codes and practices Integrating Variable Renewable Energy FRAME CONDITIONS* - measures for integrating VRE
- 8. www.iea-retd.org 8 0 1 2 3 4 5 Dispatch sophistication and maturity VREincentives and dispatch Use of forecasting System services market Grid representation Interconnector management Regulator incentives on SO Grid code Start year Now 0 1 2 3 4 5 Dispatch sophistication and maturity VRE incentives and dispatch Use of forecasting System services market Grid representation Interconnector management Regulator incentives on SO Grid code Start year Now Integrating Variable Renewable Energy UK Germany
- 9. www.iea-retd.org 9 ..FiT, premium,tender or market ..imbalance risk ..curtailment compensation ..require dispatch in market Increasing exposure to energy market can shape portfolio, distribution and operation Integrating Variable Renewable Energy VRE INCENTIVES
- 10. www.iea-retd.org 10 OPERATING APPROVED PLANNED Integrating VariableRenewable Energy In Alberta wind gets market price only Developers moving north, where wind regime allows better match to demand (and prices) Source: Environment Canada, Alberta Environment and the US Climate Data Centre (left hand map); Albert Energy and Mott MacDonald (right hand map); EDC Associates
- 11. www.iea-retd.org 11 ..long termagreements ..explicit auctions ..market coupling ..balancing and reserve coordination Increasing exposure to energy market can shape portfolio, distribution and operation Integrating Variable Renewable Energy INTERCONNECTOR MANAGEMENT
- 12. www.iea-retd.org 12 Integrating VariableRenewable Energy PROCESS OF MARKET COUPLING IN EUROPE Source: European Market Coupling Company
- 13. www.iea-retd.org 13 ..Four TSOsin Germany ..in 2007 begun collaborating on reserves ..extended internationally in 2011 Collaboration results in reduced reserve requirement and cost Integrating Variable Renewable Energy Grid control cooperation agreements in Germany Source: GE Energy
- 14. www.iea-retd.org 14 ..include demand& storage ..allow VRE to participate ..improve sophistication of markets ..develop new products (inertia, ramping etc.) ..[capacity market] Sophisticated system services market & products reward flexibility Integrating Variable Renewable Energy SYSTEM SERVICES
- 15. www.iea-retd.org 15 Reform willcreate new products in the system service market for System Inertial Response (SIR) and Primary Frequency Response (PFR) Reforms will provide incentives for increased flexibility and allow for greater penetration of VRE Integrating Variable Renewable Energy ERCOT and Ireland plan system service reform Source: ERCOT and Mott MacDonald
- 16. www.iea-retd.org 16 • Significantcapacity is CHP • Interconnection high, almost 100% of peak demand • Wind at 79% of peak demand 0% 50% 100% 150% 200% 250% 300% 350% 400% Dispatch able Variable Capacity as percent of peak demand (6.1 GW) Wind Solar Gas Coal Oil Biomass & waste Interconnection Integrating Variable Renewable Energy DENMARK – context Source: Energinet.DK and Mott MacDonald Source: Energinet.DK
- 17. www.iea-retd.org 17 Nordel gridcode – Wind generators on the high voltage network required to disconnect during abnormal voltage or frequency CHP in the market – CHP operators required to compete in the spot market. Nordel grid code – Wind required to provide fault-ride through, and introduction of compensation for curtailment. 1999 2004 2008 VRE in regulating market – Wind introduced into the regulating market (ancillary services). 2014 Energinet formed – out of merger between ELTRA and ELKRAFT. 2007 Market Coupling – Danish and German electricity markets coupled. 2009Negative pricing – Negative pricing first allowed in the market, occurring for between 20 and 100 hours a year. NOIS – Nordel Operational Information System, based at Energinet, monitors interconnection and usable operating reserve over the Nordic system. Internal grid strengthening – Great belt DC link between East and West Denmark, providing additional management options for wind power in the west. Market Coupling – Danish market coupled with Central Western Europe markets. 2012 2010 $Dispatch sophistication Regulator incentives on SO Use of forecasting Grid code Nordel coupling – Denmark joins Nordpool and price quotation implemented 0 1 2 3 4 5 Dispatch sophistication and maturity VRE incentives and dispatch Use of forecasting System services market Grid representation Interconnector management Regulator incentives on SO Grid code Start year Now Integrating Variable Renewable Energy DENMARK – measures
- 18. www.iea-retd.org 18 • Verticallyintegrated • Flexible capacity, but interconnection is relatively low • Capacity well distributed 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% Dispatch able Variable Capacity as percent of peak demand (5.7 GW) Wind Solar Gas Hydro Coal Nuclear Oil Geothermal Other Interconnection Storage Integrating Variable Renewable Energy HOKKAIDO – context Source: HEPCO and Mott MacDonald Source: HEPCO
- 19. www.iea-retd.org 19 JEPX –Japanese Electricity Power Exchanges first established, creating a platform for spot and forward trading. Electric Power System Council of Japan – Created as an independent body to support transmission and distribution operations. VRE incentives – Feed in Tariff introduced. 2003 2004 2009 2012 Intraday trading – Intraday trading introduced. Grid code – Fault ride through required for grid connected solar and wind generation sources. $Dispatch sophistication System services market Regulator incentives on SO Grid representation Use of forecasting Interconnector Grid code VRE incentives and Hokkaido is has a vertically integrated utility (HEPCO). This is a fundamentally different regulatory regime, for which our assessment is not applicable Integrating Variable Renewable Energy HOKKAIDO - measures
- 20. www.iea-retd.org 20 Integrating VariableRenewable Energy D Weakly connected High internal flexibility Well interconnected Low internal flexibility Easy Challenging Will need to consider all measures Implement easy measures including interconnector access Long term Possibility Policyaim Policyaim CONTEXT DEFINES CHALLENGE AND CONSTRAINS APPLICABILITY OF MEASURES Source: Mott MacDonald
- 21. www.iea-retd.org 21 CONCLUSIONS (1/3) ..Interconnectedcountries can pool flexible resource by coupling markets and cooperating on reserve/balancing ..Isolated countries need to make the most of internal flexibility ..countries with low interconnection and internal flexibility have the greatest challenge Integrating Variable Renewable Energy
- 22. www.iea-retd.org 22 CONCLUSIONS (2/3) ..dispatchsophistication can be improved, in combination with forecasting, to make the most of internal flexibility ..exposing VRE to the market encourages system friendly deployment ..moving to zonal of LMP makes the most of grid resource and provides locational investment signals Integrating Variable Renewable Energy
- 23. www.iea-retd.org 23 CONCLUSIONS (3/3) ..gridcode requirements for VRE are continuously developing; high wind ride through and synthetic inertia could be required in the future ..system service products are being developed to incentivise inertia, fast frequency response and ramping capabilities Integrating Variable Renewable Energy
- 24. www.iea-retd.org 24 KEY RECOMMENDATIONS •Consider deployment patterns early • Build-in grid code measures sooner rather than later. • Move to near real time re-dispatch supported by sophisticated forecasts • Learn from others but do one’s own studies to assess impacts • Co-operate with other jurisdictions • Market developments, including system service reform, for enhanced flexibility Integrating Variable Renewable Energy
- 25. www.iea-retd.org 25 IB contact:Andrew Conway, andrew.conway@mottmac.com IB contact: Guy Doyle, guy.doyle@mottmac.com Michael Paunescu Michael.Paunescu@NRCan- RNCan.gc.ca
- 26. www.iea-retd.org 26 CASE STUDIESINSTALLED VRE – covering a wide range of penetration level and mix of technologies 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Germany Denmark Spain IslandofIreland GB ERCOT Hokkaido California Alberta Ontario InstalledVREcapacityaspercentageof peakdemand Solar Wind Integrating Variable Renewable Energy Source: Mott MacDonald and system operators, 2014
- 27. www.iea-retd.org 27 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Denmark* California Ontario Germany Spain IslandofIreland Hokkaido Alberta GB ERCOT Interconnectionaspercentageofpeak demand Synchronously independentSynchronously connected Integrating Variable Renewable Energy CASE STUDIES INTERCONNCETION - a wide range of levels and type of interconnection Source: Mott MacDonald and system operators, 2014
- 28. www.iea-retd.org 28 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% Spain Denmark* California Germany Hokkaido GB Islandof Ireland Alberta Ontario ERCOT Installeddispatchablecapacityasapercentage ofpeakdemand Other StorageNuclear Coal Hydro Oil Gas Integrating Variable Renewable Energy CASE STUDIES FLEXIBLE CAPACITY - Covering a wide range of conventional capacity mix Source: Mott MacDonald and system operators, 2014, showing net capacity
- 29. For additional informationon RETD Online: www.iea-retd.org Contact: kristian.petrick@iea-retd.org info@iea-retd.org THANK YOU!