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Large-scale Integration of Wind Energy into Power Systems. Paul Wilczek – EWEA Senior Regulatory Affairs Advisor – Grids and Internal Electricity Market. Budapest, 5 July 2011. Presentation outline. EU and EWEA targets for Hungary and the EU up to 2020 and 2030
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Large-scale Integration of Wind Energy into Power Systems Paul Wilczek – EWEA Senior Regulatory Affairs Advisor – Grids and Internal Electricity Market Budapest, 5 July 2011
Presentation outline • EU and EWEA targets for Hungary and the EU up to 2020 and 2030 • Operating power systems with high shares of wind power • Guidingprinciples for a EU Regulatory Framework for RES integration: • RES Directive • 3rd Liberalisation Package • Conclusion
EU RES targets RES directive (2009/28/EC) • 20% RES in EU gross final consumption (Heating and cooling / Transport / Electricity) • Legally binding national targets • National Renewable Energy Action Plans • Wind energy according to NREAPs: • 495 TWh • 14% electricity consumption
EWEA targets in the EU up to 2020 and 2030 • Hungary NREAP target for 2020 • 750 MW of installed wind power capacity or 3,1% of electricity consumption • Very low penetration level in comparison with EU average • EWEA Target for 2030: • 400 GW, of which 150 GW is offshore. 1150TWh, 26.2-34.3% of EU electricity demand
Operating power systems with high shares of wind power Beside the fact that wind power delivers CO2 free power based on undepletable source at low marginal costs … • Wind power plants do not behave identically to traditional power plants • Variety of electrical conversion systems – mostly with inverters • Advances in technology give power plant characteristics to modern wind farms (e.g. active power control, voltage control, fault-ride-through) • Wind plants location is driven by resource, zoning, incentives… • needs for network extension - for example in remote areas • needs for reinforcement in areas with concentrated wind capacity • Due to resource (wind), wind power plants are VARIABLE OUTPUT generation • Need for changes in power system balancing • Geographical aggregation reduces the variability • Operating wind plants with forecast tools enhances the predictability of wind power production
Courtesy of Andrew Garrad Integrating a continental resource requires a European approach • Meteo systems • dimensions of 1000 kilometres • Regional decorrelation • Utilization of transcontinental decorrelation requires • infrastructures • markets
Smoothing effect when aggregating over large areas Power as % of installed wind power
Smoothing effect when aggregating over large areas Power as % of installed wind power
Smoothing effect when aggregating over large areas Power as % of installed wind power
Sophisticated capabilities facilitating integration of wind power plants into power systems include • Active power capability – frequency response and ramp rate control • Voltage control and reactive power capability • Fault ride through capability – with injection of active and reactive power during network faults • Coordinated wind plant operation (VPP) • Wind power penetration level is one of the • decisive parameters for integration challenges
Operating a power system with high shares of wind power – The example of Denmark This graph shows a penetration level of 20% wind power already in 2000 - The government aim is to move to 50% by 2025! System flexibility and how well the power system is interconnected are decisive parameters for integration challenges
Power system integration needs start only with increasing penetration levels • Wind power fits well in power systems but requires additional ‘integration efforts’, depending on: • Wind power penetration level • Flexibility of the power system in question • Generation (up and down regulation capability) • Demand management and storage • Network + interconnection (available X-border capacity) • Power market characteristics (e.g. for balancing services): time, geographical area • Flexibility varies widely in EU • Integration efforts (e.g. moving to more flexibility) can be implemented by suitable market design • Limit to wind power penetration level is not technical!
Guidingprinciples for a EU Regulatory Framework for RES • RES Directive • Binding RES targets for 2020 • Guaranteed transmission and distribution of electricity produced from RES • An appropriate grid infrastructure should be ensured • 3rd Liberalisation Package • Newly established bodies ENTSO-E and ACER • Binding cross border rules: Network Codes • A first Pan-European Grid Plan: The ENTSO-E 10-Year Network Development Plan These two legislative packages should be the guiding principle for stakeholders when considering any policy options.
Rationale for network arrangements in the RES directive • In the absence of effective competition, priority access and dispatch is necessary. • Member States shall ensure that appropriate grid and market-related operational measures are taken to minimise the curtailment of electricity produced from RES Priority grid access should not be seen as positive discrimination, but as compensation given there is no functioning internal energy market.
Market design and the integration of wind power • A cost-effective deployment of wind power, and the integration of European electricity markets are fundamentally linked. • The market’s gate-closure time closer to real-time would have a dramatic impact on forecast accuracy and the cost of balancing the system as proven by various power system studies. • EU-wide deployment of intra-day market trading with • implicit auctioning and gate closure times as close to • real time as possible is crucial.
Market design and the integrationof wind power (II) • The functioning and liquidity of wholesale markets and cross-border interconnectivity together with the forecast horizon influences to what extent wind farm operators can be at all in balance. • The application of state-of-the-art forecast tools together with larger balancing areas is the key! In regimes where balancing costs must be borne by the wind farm operator, regulators should ensure that these costs are transparent and represent only the real cost of balancing.
Why are functioning power markets crucial for the integration of windenergy? The concern of the TSO: Consequences of an additional 3000 MW on the Danish power system Source: Energinet.dk Optimal utilisation of both, domesticflexibility and international electricitymarketsis a prerequisite to maintainsecurity of supply and maximise the value of wind power.
Outline of the 3rd Liberalisation Package Two main dimensions of the adopted 3rd Package: • Institutional elements • Cross-border elements • 3rd Package text outlines institutions and regulatory tools such as Framework Guidelines and Network Codes • Debate now needs to move on to the obstacles to achieving a single European market - which policy options can be taken when implementing the 3rd Package
1. Institutional dimension The 3rd Package provides for the creation of two new European bodies: • ENTSO-E (European Network of TSOs for Electricity): fullyoperationalalreadysince July 2009, representing 42 TSOs from 34 countries Purpose: • To develop network codes: binding rules for TSOs and grid users • Pan-European 10-Year Network Development Plan • ACER (Agency for the Cooperation of Energy Regulators): EU-funded Community Body, operational since 3 March 2011 Purpose: • To provide a framework for the cooperation of NRAs • To complement NRA actions at EU level
The development of EU network codes: 2. Cross-border Dimension
Ongoing « Pilot Projects » and keydeliverables for the power sector • NetworkCode for grid connection requirements:A common ENTSO-E and Regulators initiative. Testing the process of framework guidelines and code drafting – public consultation this autumn • 10 Year Network Development plan (TYNDP):An important newtask given to TSOs and ENTSO-E by the 3rd Package. Not only a compilation of national grid development plans – an overall grid development strategy for Europe shall be applied as well.
To conclude: How do we achieve a high penetration of RES? Lessons learned up to now… • Impediments: • Lack of transmission • Lack of TSO cooperation • Inflexibility due to marketrules and contracts • Unobservable RES – behind the fence • Inflexible operationstrategiesduring light load and highriskperiods • System cost: • Unservedenergy • Higher fuel costs • Higheremissioncosts • Higher O&M costs Impediments • Successfactors: • Forecasting • Thermal fleet: • More quick starts • Deeperturn down • Fasterramps • More spatial diversity • RES + DG + DSM • Grid-friendly RES System cost Successfactors RES penetration, %
Thank you EWEA 80 RUE D’ARLON B-1040 BRUSSELS T: +32 2 213 1811 F: +32 2 213 1890 E: ewea@ewea.org www.ewea.org