System Integration of Renewables

System Integration of Renewables

Paolo Frankl – Head, Renewable Energy Division

Astana, 14 June 2017

© IEA 2017

IEA System Integration of Renewables analysis at a glance

• Over 10 years of grid integration work at the IEA

- Grid Integration of Variable Renewables programme

- Dedicated Unit since June 2016

- Part of delivering the IEA modernisation strategy

Technical Progress & Tracking

2011 2017

Framework, Technology,

Economics

2014 2016 2017

Policy Implementation

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Variable Renewable Energy (VRE) on the rise

VRE share in annual electricity generation, 2015-21

• Critical contribution of wind and solar power in long term scenarios

- WEO 450 scenario: VRE account for 27% of global electricity and 30% of global capacity in 2040

Source: Medium Term Renewable Energy Market Report, 2016

0% 10% 20% 30% 40% 50% 60% 70%

INDONESIA THAILAND

SOUTH AFRICA CHINA

USA CHILE

MEXICO AUSTRALIA SWEDEN

ITALY MOROCCO

SPAIN BELGIUM

UK GERMANY IRELAND DENMARK

PV share 2015

Wind share 2015

Additional PV share 2021

Additional wind share 2021

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VRE deployment phase in selected countries

Each VRE deployment phase can span a wide range of VRE share of generation; there is no single

point at which a new phase is entered

ID ZA

PJM

MX

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%

Annual share of VRE in generation

IE DK Phase 4 - Short-term

stability DE ES UK IT PT GR

Phase 3 - Flexibility is key BR CL

IN NZ

CN

AT

SE CAISO

ERCOT

AU

Phase 2 - Better

operations

Phase 1 - No relevant impact

VRE share in annual electricity generation and system integration phase, 2015

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Three main messages on system integration

1. Very high shares of variable renewables are technically possible

2. No problems at low shares, if basic rules are followed

3. Reaching high shares cost-effectively calls for a system-wide transformation

Remaining system VRE

FLEXIBLE Power system

• Generation • Grids • Storage • Demand Side Integration

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Background and Objective

• What it is:

- Resource for policy makers and power system practitioners on

how to deal with first stages of VRE integration

• What it’s not:

- A comprehensive guide on how to kick-start a market for wind

and solar power

• Two main objectives

- Debunk myths and common misconceptions

- Provide a framework and practical guidance on dealing with

main technical priorities

New Publication released

March 2017

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Covered Myths

1. Weather driven variability is unmanageable

2. VRE deployment imposes a high cost on conventional power plants

3. VRE capacity requires 1:1 “backup”

4. The associated grid cost is too high

5. Storage is a must-have

6. VRE capacity destabilises the power system

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Focus on Phase 1

Appropriate technical grid connection rules are critical to ensure that VRE plants do not have a negative

impact on the local quality and reliability of electricity supply.

Priorities for VRE Integration – Phase 1

Source: IEA 2017, Getting wind and sun onto the grid

Solve local grid issues

Establish connection

rules

Successful integration of first wind and solar plants

Issue Action Outcome

Yes No Action taken

• VRE output is not noticeable for system

operator

• VRE variability tends to be negligible

compared to fluctuations in demand

• Priority areas are connection

requirements and grid codes

Can the grid accommodate VRE at the identified sites?

Are there appropriate technical grid connection

rules?

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Focus on Phase 2

Updated system operations, sufficient visibility & control of VRE output becomes critical in Phase II

• First instances of grid

congestion

• Incorporate VRE

forecast in scheduling

& dispatch of other

generators

• Focus also on system-

friendly VRE

deployment

Source: IEA 2017, Getting wind and sun onto the grid

Is grid connection code appropiate?

Is VRE reflected in system operation?

Is the grid still sufficient for continuing VRE

deployment?

Is VRE deployed in a system-friendly way?

Develop or upgrade grid code

Ensure visibility and controllability of power plants; Implement VRE

forecast system

Improve operations; Consider grid expansion

Manage VRE deployment location and technology

mix

Successful integration of increasing shares of wind and solar PV plants

Issue Action Outcome

Yes No Action taken

Priorities for VRE Integration – Phase 2

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More wind and solar changes net-load

• Higher uncertainty

• Larger and more

pronounced changes

• More flexibility needed

0

10

20

30

40

50

60

70

80

1 10 20 30 40 50 60 70 80 90 100 110 120 130 140

Hours

Net

load

(G

W)

0.0% 2.5% 5.0% 10.0% 20.0%

Larger ramps at high shares

Illustration of net load at different VRE shares

Net load = power demand

minus wind and solar output

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Policy, regulatory & market frameworks for system transformation

• Ensuring least-cost dispatch

• Trading close to real time

• Market integrations over large regional areas

Efficient operation of the

power system

• Upgrade planning and system service markets

• Generation, grid, demand-side integration and storage

Unlocking flexibility from all

resources

• Improve pricing during scarcity/capacity shortage

• Possibly capacity mechanisms mechanism as safety-net Security of electricity supply

• Sufficient investment certainty

• Competitive procurement (with long-term contracts)

Sufficient investment in

clean generation capacity

• Reflecting the full cost (i.e. environmental impacts) Pricing of externalities

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System transformation

Integrating large shares of VRE requires system transformation

Policy and market framework

System and market operation

Actions targeting overall system Actions targeting VRE

Leve

l of

VR

E p

en

etr

atio

n

Flexible resources planning & investments

Grids Generation

Demand shaping

Storage

System-friendly VRE deployment

System services

Location

Technology mix

Distributed resources integration

Integrated planning

Generation time profile

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Technical

Electricity

System transformation requires holistic approach

• Institutional – defining roles

and responsibilities

• Economic –market design,

regulation, planning

frameworks

• Technical – operation of

power system, safeguarding

reliability

Policies, markets and regulatory frameworks link technical, economic and institutional aspects

Institutional

Information & coordination

• Operation of power systems

• Addressing operational challenges

Economic

Capital

Policy, market and regulatory

frameworks

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Example of technical measures – power plant flexibility

Power plants are an important source of flexibility, evident in countries such as Germany, Denmark, Spain, the United States

Generation pattern of coal plants in Germany, May 2016

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

01 May 02 May 03 May 04 May 05 May 06 May 07 May

MW

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• Flexible power plants are a major source of flexibility in all power

systems

- Biggest source in several leading countries

- Key issues: minimum generation levels, start-up times, ramp-rates

• Significant barriers hinder progress:

- Technical solutions not always known

- Regulation and/or market design frequently favour running ‘flat-out’

- Contractual arrangements with manufacturers may penalise flexible

operating pattern

System integration - boosting power plant flexibility

Example North-America From baseload operation to

starting daily or twice a day

(running from 5h00 to

10h00 and 16h00 to 20h00) Source: NREL

Campaign Co-Leads

China Denmark

Participating CEM Members

Germany

Canada

Mexico UAE

Partners

Brazil India Indonesia

Saudi Arabia South Africa

EC

Japan

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Summary and conclusions

• Little problems at low shares, if best-practice followed

• Secure and cost-effective integration of wind and solar

power requires a system-wide approach

• Increasing the flexibility of the power system is the main

goal of power system transformation.

• Improving the operation of the power system and

upgrading power market design is often the cheapest

way to get flexibility

• Retrofitting existing power plants is often much cheaper

than costly options such as battery storage

© IEA 2017