Green Net presentation - Smart Grids European Technology Platform

lettucestewΗλεκτρονική - Συσκευές

21 Νοε 2013 (πριν από 3 χρόνια και 10 μήνες)

65 εμφανίσεις


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Hans Auer


Energy Economics Group

Vienna University of Technology

Gusshausstrasse 25
-
29/373
-
2

A
-

1040 Vienna, Austria

Email: auer@eeg.tuwien.ac.at

European Technology Platform SmartGrids

8th Mirror Group Meeting

Vienna, 23 October 2007

The Project Green
Net
-
Incentives:

Status Quo and Lessons for

Platform Deployment

Strategy


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Agenda

1. Overview of
Green
Net
-
Europe

Projects

2. Modelling Approach of Software
Green
Net
-
Europe

3. Selected Results based on
Green
Net
-
Europe

4. Lessons for Platform Deployment Strategy


4.1
Boundary between Generation Unit, Grid Infrastructure, System Operation


4.2 Grid Regulation Policies impeding DG/RES Integration and SmartGrid


Solutions


4.3 UK Grid Regulation Model: Innovative Forward
-
Looking Approach


4.4 Investment Needs for SmartGrid Solutions

5. Recommendations


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

1. Overview of Green
Net
-
Europe

Projects

Green
Net

(FP5):

Development of simulation model for RES
-
E deployment (free of charge);




empirical data for EU15 (RES
-
E potentials and cost, grid connection and


reinforcement cost, system operation and storage cost);
RES
-
E policies

Green
Net
-
EU27

(EIE):

Empirical extension to EU27 region; bottom
-
up DG/RES
-
E case


study analyses; modelling different
unbundling policies

besides


different RES
-
E policies

Green
Net
-
Incentives

(EIE):

Empirical extension to EU30+ region; comprehensive


consideration of grid
-

and system operator’s point
-
of
-
view;


addressing also
grid regulation and (balancing
-
)market policies





in the context of large
-
scale intermittent DG/RES
-
E integration


(besides different RES
-
E policies and unbundling policies)

Ongoing
Green
Net
-
Europe

applications/extensions:

SUPWIND (FP6; 2006
-
2009)







Improgres (EIE; 2007
-
2009)

Proposed
Green
Net
-
Europe

applications/extensions:

SUSPLAN (FP7); Realisegrid (FP7);


SmartGrid
-
Investor (Austrian ‘Energie der Zukunft’ Programme)


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007



Different strategies for implementation of
grid
-
related

and
system
-
related

cost of RES
-
E


integration into the supply curve (existing power plants and additional RES
-
E potentials);



Cost allocation of these cost (
RES
-
E support instruments

vs.
grid tariffs

vs.
balancing/


wholesale markets
) affects overall generation cost of RES
-
E developer (and, therefore,


investment decision) as well as willingness of grid
-

and system operators to absorb large
-


scale intermittent DG/RES
-
E generation;

2. Modelling Approach of Software Green
Net
-
Europe


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Selected Screenshots of the Simulation Software Tool GreenNet
-
Europe


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
New installations [MW]
Biogas
Solid biomass
Biowaste
Geothermal electricity
Hydro small-scale
Hydro large-scale
Photovoltaics
Solar thermal electricity
Tide & wave
Wind onshore
Wind offshore
RES
-
E installations in the EU27 up to 2020

according to the BAU
scenario

3. Selected Results based on Green
Net
-
Europe


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Specific grid
-
related and system
-
related cost of wind integration
in the EU27 up to 2020

0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Specific cost [€/MWh
wind
]
Grid connection costs
Grid reinforcement costs
Balancing cost
System capacity cost
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Wind generation of new plants
(installed after 2004) [GWh/yr]
Reference scenario
Super-shallow charging
scenario
Deep charging scenario
Wind deployment for different
cost allocation scenarios

in

the EU27 up to 2020

Results (cont‘d)


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Germany:

Changes of the RES
-
E generation portfolio in 2020
for different cost allocation policies

Grid connection cost of offshore
-
wind
allocated to wind developer (
´
Shallow
´
)

Grid connection cost of offshore
-
wind
socialised in the grid tariff (
´
Super
-
Shallow
´
)


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

4. Lessons for Platform Deployment Strategy



There exist different disaggregated cost elements in the context of large
-
scale


DG/RES
-
E integration with different cost remuneration instruments:


-
> DG/RES
-
E power plant (RES
-
E support instruments; wholesale markets)


-
> Grid connection and grid reinforcement (grid tariffs)


-
> System balancing (balancing markets incl. load response, storage options)


-
> System adequacy (wholesale markets; storage options)





At present, cost allocation policies of DG/RES
-
E integration are very heterogeneous


in different EU Member States and basic unbundling and market principles are still


often violated in this context …


-
> E.g., grid infrastructure elements still allocated to RES
-
E support instruments


-
> E.g. system balancing and adequacy still not remunerated in corresp. balancing/wholesale markets




Policies for and Role of Grid Operators and System Operators in the context of


large
-
scale intermittent DG/RES
-
E integration is not entirely understood at the


moment (but is a precondition for the implementation of SmartGrid solutions)

4.1 Boundary between Generation Unit, Grid Infrastructure,


System Operation


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

4.2 Grid Regulation Policies impeding large
-
scale DG/RES


Integration and SmartGrid Solutions

Grid
-

and system operators are dealing with the following unsolved problems, if they

shall provide the platform for large
-
scale DG/RES
-
E integration and SmartGrids:


1.
National regulators implement new grid regulation models (mainly price
-
cap regulation), benchmark


existing grid infrastructure and grid operation cost and expect “cost efficiency” (i.e. reduction of
existing cost basis and, subsequently, grid tariffs for end
-
users)


-
> These expectations neither trigger investments into existing grids nor into innovations in general


-
> But increasing shares of DG/RES
-
E integration expect investments into the grid infrastructure
and investments into intelligent new technologies for grid operation as well as implementation of
completely new concepts of interactions between several (new) market players (“Smart Grids”)


2.
Cost recovery is essential for grid
-

and system operators since investments into the capital intensive
infrastructures and innovative solutions are effectively sunk and, therefore, vulnerable to regulatory
changes.


If there exist regulatory uncertainties and/or exclusively “ex
-
post oriented grid

regulation models (e.g. price caps)”, SmartGrid solutions
hardly can/will

be

implemented in the future.


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

„Efficient“

Cost (OPEX,
CAPEX) for Grid
Infrastructure &

Grid Operation

Existing Grid
Regulation Models
(„Incentive“ Regu
-
lation to „Cut“ Cost)

Cost Drivers due to
Large
-
Scale Grid
Integration of
Decentralised
DG/RES Technologies
and Realisation of
„Smart Grid“
Concepts

Existing Grid Regulation Models:

Problem of „Asset Stranding“ in Case of DG/RES Integration

Examples of Cost Drivers:




Completely new design criteria and operational concepts necessary due to bidirectional load flows in


case of DG/RES generation



Reinforcements and extensions for existing lines, cables, transformers, and switching devices



Higher technical standards for V/f
-
Regulation, accounting and billing devices and procedures



Installation of new IT & communication technology necessary to manage „active“/“intelligent“ grids



Higher transaction cost to operate „active“/“intelligent“ grids due to new market actors



Etc.

Not considered in the grid

regulation models at the moment


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

4.3 UK Grid Regulation Model: Innovative Forward
-
Looking Approach



Boundaries on both ends

(towards DG/RES generators and customers) of the grid are


the same:
Deep
-
> (Super
-
)Shallow



Distribution grid operators are allowed to
recover

their DG/RES generation
connection


cost directly in the grid tariffs

by a combination of
pass through (80%)

and
incentive


per kW connected

(EUR 2.16 (£1.5) per kW)



Innovation Funding Incentive (IFI):

IFI projects can embrace any aspect of distribution


system asset management including connection of DG/RES generation. A distribution


grid operator is allowed to
spend up to 0.5% of its revenue on eligible IFI projects

and


can recover a significant proportion of associated costs from its customers (90% in


2005/2006).



Registered Power Zones (RPZ):

In contrast to the IFI,
RPZs

are focused specifically on


the
connection of generation to distribution systems
. RPZs are intended to encourage


distribution grid operators to develop and demonstrate new, more cost effective ways


of connecting and operating generation that will deliver specific benefits to new


distributed generators and broader benefits to consumers generally.


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

4.4 Investment Needs for SmartGrid Solutions

Gesamtinvestitionen (real
Jahr2000
) in Übertragungs- und
Verteilnetze in ausgewählten Ländern seit 1960
0,2
0,3
0,4
0,5
0,6
0,7
0,8
0,9
1
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
Austria
Germany
Norway
USA
Investitioszyklus - Zentral
1940
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
2050
Investition
Reinvestition
Investitioszyklus - Smart
1940
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
2050
Investition
?
SmartGrids…

...but innovation is not for free !

NO SmartGrids

Historical investment cycle of T&D grids
in selected countries since 1960


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Necessary Investments into the Grids depending on the

Future Deployment of Decentralised DG/RES Generation

Necessary grid
investments
[

/MWh
DG/RES
]

0

Deployment of
decentralised DG/RES
technologies

Starting point depends
on investment cycle of
existing „passive“ grid
infrastructure

Total investments into the
grids

Necessary investments to realise
SmartGrids absorbing large
-
scale
DG/RES generation

Necessary re
-
investments into
the existing „passive“ grid
infrastructure

[MWh
DG/RES
] bzw. [%]

Passive Grids

Smart Grids

Super
-

Smart Grids


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Common understanding of the role and definition of the boundaries (incl. the

different
´
market places
´
, support instruments, etc. to remunerate and

socialise the different cost elements):


Generated, stored and consumed kWh (SmartGrids talk about
´
network users
´
)


Grid infrastructure incl. IT & communication infrastructure (
´
Assets
´
)


Online system balancing and system operation (incl. demand response, storage)


Development of new, innovative technologies (incl. IT & communication ) and

concepts needed for the implementation of SmartGrid solutions


´
Strategic Research Agenda for Europe‘s Electricity Networks of the Future
´

could even more emphasis the
´
cross
-
cutting / horizontal issues
´
:


´
Economic level playing field
´

to develop new, innovative technologies and SmartGrid
concepts (maybe also some kind of temporary support instruments or innovation grants)


Addressing the
interdependency of different policies

(DG/RES
-
E support, unbundling,
grid regulation, market organisation in general, others)


-
> Harmonisation and implementation of forward
-
looking, ex
-
ante elements into


legislation (innovation expects long
-
term regulatory confidence)

5. Recommendations


www.greennet
-
europe.org

SmartGrids
-

8th Mirror Group Meeting
Vienna, 23 October 2007

Appendix: Ex
-
post oriented Price
-
Cap and Revenue
-
Cap Regulation Models:
Disincentives for Grid Operators to Integrate DG/RES
-
E Technologies

)
1
(
*
1
X
RPI
P
P
t
t




!
Profit

reduce
Cost
n
Integratio

Increasing

0



c

variable
c
x,
fixed
p

max
ofit
Pr

,




c
px
c
x

Basic
´
Incentive Regulation
´

Formula:

Economic Decision Criteria from the Grid Operator‘s Point
-
of
-
View:

If DG/RES
-
E integration cost of grid operators are not eligible in the grid regulation model (i.e. no
remuneration of these cost in the grid tariffs possible), there are no incentives to connect and inte
-
grate DG/RES
-
E technologies:

Way Forward:
Implementation of an additional ex
-
ante element into the
´
incentive regulation
´


formulas enabling cost remuneration of cost caused by DG/RES
-
E integration


and SmartGrid solutions.

Price
-
Cap:

variable
c
x,
p,



max
ofit
Pr

,

,



c
px
c
x
p

Revenue
-
Cap:


)
1
(
*
kW
*
C

)
1
(
*
,

/

j
i,

DG/RES
j
i,

DG/RES

1
j
i
RES
DG
C
t
t
LR
RPI
X
RPI
P
P










well known ex
-
post element

ex
-
ante element enabling DG/RES and SmartGrids