November 2019 Effective integration of Distributed Solar PV Project summary
November 2019
Effective integration of
Distributed Solar PV
Project summary
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The team
3
The environment Nov 2014
December 2014
Jan 2015
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March 2015
April 2015
May 2015
June 2015
July 2015
Aug 2015
Sep 2015
October 2015
Nov 2015
December 2015
Jan 2016
Feb 16
March 2016
April 2016
May 2016
June 2016
July 2016
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9
$/W
p German spot market prices for polycrystallinemodules from Europe
86 % drop in the last 10
years
Reduction of solar PV
investment
Competitive LCOE
compared with other
technologies
Improvement in
monitoring solutions
Enhancement of the
technology
characteristics
Nowadays, distributed generation and integrated local
energy systems are an affordable solution
4
Cost of the electricity supply in
the consumption location based
on distributed solar PV
€600/kW
1,700 x 25
= c€1.4/kWh
Investment:
€600-1,000/kW
Production in
Madrid area:
1,700 kWh/kW
Useful life: 20-
30 years
Maintenance
cost: no relevant
The environment
5
The scope: distributed solar PV
Integration approach: demand + solar
PV + batteries
Optimal sizing of solar PV equipment
and storage devices according to
consumption patterns and radiation
profile: affordable business models
Impact on wholesale market price
Impact of the solution on the electricity
system reliability: static and dynamic
assessment
Recommendations: business,
regulation and technical
Test in
different EU
environments:
Greece
Poland
Lithuania
Germany
Spain
6
Distributed
solar PV:
Prosumer
Electricity
wholesale
market (pool)
Electricity
(export)
€
Electricity
system (DSO)
Electricity
retail market
(retailer)
Electricity
system (DSO)
Electricity
(import)
€
The solution is sized according to the consumption profile, the
irradiation pattern (electricity production) and the energy storage
devices characteristics, taking into consideration different regulatory
frameworks: net metering, feed in tariff, the retail and wholesale
electricity prices, etc.
The method for sizing the solution
7
The case studies More than 80 case studies
Economic affordable solution,
IRR higher than 7% (in some
EU locations higher than 10%)
Relevant self-sufficiency.
Depending on the
consumption profile, up to 60%
The effectiveness of the
solution is based on self-
consumption rather export
energy to the market
Currently, the storage reduces
the return of the investment
Example: Residential prosumer in Germany
8
The impact of the distributed solar PV on the wholesale market
Simulating the Spanish pool with 1 TWh of distributed solar PV, the price had dropped:
€0.44/MWh in 2015
€0.37/MWh in 2016
€0.35/MWh in 2017 0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
0.00
1150
.00
2300
.00
3450
.00
4600
.00
5750
.00
6900
.00
8050
.00
9200
.00
1035
0.0
011
500.
00
1265
0.0
013
800.
00
1495
0.0
016
100.
00
1725
0.0
018
400.
00
1955
0.0
020
700.
00
2185
0.0
023
000.
00
2415
0.0
025
300.
00
2645
0.0
027
600.
00
2875
0.0
029
900.
00
3105
0.0
032
200.
00
3335
0.0
034
500.
00
3565
0.0
036
800.
00
3795
0.0
039
100.
00
4025
0.0
041
400.
00
4255
0.0
043
700.
00
4485
0.0
046
000.
00
4715
0.0
048
300.
00
4945
0.0
050
600.
00
5175
0.0
052
900.
00
5405
0.0
055
200.
00
5635
0.0
057
500.
00
5865
0.0
059
800.
00
Pri
ce (
€/M
Wh
)
Energy (MWh)
Supply and demand
SupplyDemand
Price
Self-consumption
Demand’ Supply’
Energy surplus due to distributed generation
2017 Day_Ahead_Auction Model_Price NoPV_Model_Price Mean Price 34.20 34.19 40.47 Peak Price 37.99 37.90 49.67 None Peak Price 30.41 30.48 31.28
2016 Day_Ahead_Auction Model_Price NoPV_Model_Price Mean Price 28.98 28.98 33.96 Peak Price 31.93 31.83 41.14 None Peak Price 26.03 26.14 26.78
Germany
9
The impact of the distributed solar PV on reliability of the system
Static and
dynamic
assessment,
simulating
the impact of
different
levels of
distributed
PV
penetration
on the
electricity
flows
Voltage control: reduction of this
variable volatility with reference to
the voltage reference
Reduction of losses in the
transmission and distribution grid
Reduction of the load of circuits
Reduction of risk exposure with
reference to incidents in the
system (contingencies)
Solar PV increases the impact of
frequency drops. Batteries mitigate
this impact.
10
Recommendations In progress
The solar PV panels can cover most of the demand at sunlight
hours while the rest of the time the electricity is purchased from the
grid: self-consumption
Relevant economic savings in the variable and fixed prices.
Clustering prosumers is an effective approach: optimization in the
investment process and in the self-consumption (reduction of
electricity excesses).
Net metering approach could promote the installation of distributed
solar PV, but it is not an optimal method.
The effective integration of prosumers to provide energy/services
to the market/system operators require to establish intermediaries
(aggregator): optimizing.
11
Recommendations In progress
It is necessary to establish a regulatory framework for the
aggregators activities (integration with the market and system
operators).
In order to incentivise the distributors to collaborate in the large
penetration of distributed generation, economic incentives has to be
established based on the positive impact of this solution.
It is pending to decide the information flow of the distributed solar PV
with the DSO and TSO, and the monitoring process.
The usage of batteries to enable the penetration of distributed solar
PV requires the reduction of its costs to around €120/kWh
Batteries is an accurate solution to provide frequency control
services.
The effective management of the electricity system requires to
establish connection grid criteria for large distributed solar PV
penetration.