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1 © OECD/IEA 2018

IEA

Grid Planning and Operation for High VRE Penetration

Indonesia Energy Transition Dialogue Forum 2018, Jakarta, 15 November 2018 Dr. Peerapat Vithayasrichareon, Lead, Modelling and System Reliability

System Integration of Renewables

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2 © OECD/IEA 2018

IEA System Integration of Renewables analysis at a glance

• Over 10 years of grid integration work at the IEA

- Grid Integration of Variable Renewables (GIVAR) Programme

- Use of proprietary and external modelling tools for techno-economic grid integration assessment - Global expert network via IEA Technology Collaboration Programmes and GIVAR Advisory Group

- Part of delivering the IEA modernisation strategy

Progress & Tracking

2014 2018

Framework, Technology, Economics

2016 2017 2017

Policy Implementation Grid integration study

2018

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3 © OECD/IEA 2018

IEA System Integration of RE analysis and engagement since 2014

Workshops and dissemination events

Regional Latin America training (2014/15/16);

New Delhi/Bangalore (2015);

Bali Clean energy Forum (2015/17);

Beijing (2016/17); Astana (2016);

Johannesburg (2016);

New Delhi (2017);

Mexico City (2017).

Since 2014, IEA System Integration analysis covered over 20 countries in the five continents.

Association and partner countries have been systematically prioritized.

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4 © OECD/IEA 2018

Growth of wind and solar raises system integration challenges

In most power systems the share of VRE is expected to double to over 10% in just five years. The growth of VRE raises the system integration issues. Power system flexibility is a key factor.

Source: Renewable 2018: Analysis and Forecasts to 2023

0 500 1 000 1 500 2 000 2 500

0-5%

5-10%

10-20%

20-40%

40-50%

>50%

TWh

% VRE in electricity generation

PV generation in 2017 Wind generation in 2017 PV generation in 2023 Wind generation in 2023

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5 © OECD/IEA 2018

Different Phases of VRE Integration

Phase Description

1 VRE capacity is not relevant at the all-system level

2 VRE capacity becomes noticeable to the system operator

3 Flexibility becomes relevant with greater swings in the supply/demand balance 4 Stability becomes relevant. VRE capacity covers nearly 100% of demand at

certain times

5 Structural surpluses emerge;

electrification of other sectors becomes relevant

6 Bridging seasonal deficit periods and supplying non-electricity applications;

seasonal storage and synthetic fuels

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6 © OECD/IEA 2018

Net load comparison for different phases of VRE integration

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000

01:00 03:00 05:00 07:00 09:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00

MW

Demand VRE production

Demand and VRE production in a typical week day, Italy, 2010

No difference in net load (Phase 1 of VRE integration)

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000

01:00 03:00 05:00 07:00 09:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00

MW

Demand VRE production Net Demand

Demand and VRE production in a typical week day, Italy, 2016

Flexibility is key to manage variability in net load

(Phase 3 of VRE integration)

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7 © OECD/IEA 2018

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

VRE share in annual electricity generation and system integration phase, 2017

0%

10%

20%

30%

40%

50%

60% % VRE generation

Phase 1 - No relevant impact on system integration Phase 2 - Drawing on existing system flexibility

Phase 3 - Investing in flexibility Phase 4 - Requiring advanced technologies to ensure reliability

Source: Renewable 2018: Analysis and Forecasts to 2023

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8 © OECD/IEA 2018

Differentiating flexibility requirements by time horizon

Flexibility is needed across different time scales from sub-seconds to years.

Flexibility type Short-term (ST) flexibility Time-scale Sub-seconds to

seconds Seconds to

minutes Minutes to hours

Issue Ensure system stability (voltage and frequency)

Short term frequency control

Meeting more frequent, rapid and less predictable changes in the supply /

demand balance,

Medium term (MT) flexibility

Hours to days Determining

operation schedule in hour- and day- ahead.

Long-term (LT) flexibility

Days to

months Months to years Addressing

longer periods of VRE surplus or deficit

Balancing seasonal and inter-annual availability of VRE generation with demand

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9 © OECD/IEA 2018

Unlocking flexibility using different flexibility resources

Grid infrastructure

Power system flexibility resources

Grids Generation Storage Demand shaping

Key messages on system integration

No problems at low shares of VRE, if basic rules are followed

Very high shares of VRE are technically possible

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

The role of different flexibility resources across different timescales (and VRE phases)

Grid infrastructure – FACTS devices, special protection schemes (for ST); DLR and cross-border lines (for MT).

Generation – Inertia, droop, AGC (for ST); Cycling and quick start (for MT);

Storage – Battery (ST); Pumped storage hydro (for MT and LT), Hydrogen production (for LT)

Demand shaping – DSR, demand side options (e.g. water heaters, A/C with cold storage) (for ST);

smart meters (for MT); sector coupling, synthetic fuels (for LT)

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10 © OECD/IEA 2018

Flexibility options for different phases of VRE integration

Flexibility resources can mitigate the challenges from VRE integration in different phases and allowing the system to integrate more VRE

Plant retrofits Advanced plant design Flexibility from

VRE

Improved grid infrastructure Special protection

schemes Advanced technology to increase stability

Large industrial Commercial and

residential Peer-to-peer

trading to enable transition Policy, regulatory and market frameworks Institutional roles and responsibilities;

Phases 1 and 2 can usually be managed through existing resources and operational practices

Reservoir hydro Battery storage Long-term storage

Medium-term storage

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6

Power Plants Grids DSR Storage

Key flexible resource examples to enable transition

Improved operations e.g. forecasting, real time monitoring and control, faster dispatch

Operation

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11 © OECD/IEA 2018

Example of measures to integrate VRE – 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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12 © OECD/IEA 2018

System friendly deployment of VRE

• Measures that make the deployment of VRE more accommodating to the system

- Technology mix – outputs from different technologies can compliment one another - Geographical spread – dispersal of VRE plants can smooth the variability

- System services – VRE plants that can provide system services (frequency, voltage, etc.)

VRE output and the benefit of geographical spread, South Africa

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13 © OECD/IEA 2018

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

Economic

Capital Policy, market

and regulatory frameworks

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14 © OECD/IEA 2018

Power sector planning needs to be more integrated

• Power sector planning traditionally focused on developing supply sources and infrastructure to meet demand

• But the landscape of the power sector is changing due to

- Uptake of VRE, DER

- Demand side participation

- Electrification of transport and heat

• Implications of VRE, DER, should be taken into consideration in power sector planning

Power sector planning Generation

Transmission network

Distribution network Electrification

of other sectors DER

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15 © OECD/IEA 2018

A paradigm shift - local grids in future energy systems

• High uptake of DERs are changing the way local grids are planned and operated

• Successful transition rests on changes in three dimensions

- Technical – more dynamic (bi-directional) energy flows require changes in system operations - Economic – High uptake of DERs raise the need for retail tariff reform. Consideration of time

and place can foster greater flexibility

- Institutional - roles and responsibilities are changing. Better co-ordination between local grid and transmission system operators is key

Future

Data flow Decentralisation

Digitalization

Past / present Generation Transmission Distribution Customer

Energy flow

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16 © OECD/IEA 2018

Summary

• The growth of VRE raises system integration challenges and power system transformation

- Technical, economic, institutional and policy, market and regulatory aspects

• The integration of VRE can be categorised into six different Phases

- The Phases approach could be used for wider energy planning to ensure the smoothest and most cost-effective rollout of VRE.

• Power system flexibility is essential with increasing VRE penetration

- Flexibility requirements depend on the timescale and VRE integration phases

• System operation and planning are key factors for integrating VRE

- Better system operation and integrated planning can enhance system flexibility

- Need a clear vision of the amount and type of generation capacity and other system assets (network, storage) that will be deployed over time.

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17 © OECD/IEA 2018

www.iea.org

IEA

[email protected]

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18 © OECD/IEA 2018

Electricity generation growth by fuel

Renewable generation leads the growth of electricity among different technologies. Expansion of fossil fuel is expected to decline considerably.

Source: Renewable 2018: Analysis and Forecasts to 2023

- 500 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500

2018-23 2012-17 2006-11

Generation growth (TWh)

Year

Coal and gas Wind Solar PV Hydropower Bioenergy Nuclear Others

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19 © OECD/IEA 2018

Integrated power sector modelling is key

• Integrated power sector modelling is key to assess system flexibility

Traditionally, power sector modelling tools/studies are not integrated: cap expansion;

Production cost modelling (PCM); technical

• With increasing VRE, there is a need to prioritise and integrate power sector modelling - Linking the modelling tools to the timescale and VRE phases (and penetration)

Production cost modelling (PCM)

• Unit commitment and economic dispatch (UCED)

• Nodal representation of transmission

• Simulation of wind and solar outputs

• Flexibility assessment (different resources)

Phase VRE 2-3

Power system flexibility

Time-scale: Minutes to hours

Technical studies

• Load flow analysis (static)

• Dynamics stability: Transient, small-signal, frequency, voltage

Phase 4VRE

Power system stability

Time-scale: Sub-seconds to minutes

Long-term power sector planning

• Multi-year optimal generation portfolios and transmission plan

• Capacity value of different technologies

• Scheduling, Adequacy

• Demand forecast High

detail

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20 © OECD/IEA 2018

Better system operation

Make better use of what you have already!

• VRE forecasting

• Better system operations:

- Dynamic generation scheduling Update schedules close to real time - Dynamic generation dispatch

Short dispatch intervals - Dynamic use of the grid

Update interconnection schedules close to real time;

sub-hourly scheduling

- Reward flexible operation Make payments based on what is helpful for the system, not just MWh

6 7 8 9

Capacity (MW)

Time (hours)

Actual load curve

Load schedule - 15 minutes Load schedule - 60 minutes Balancing need 15 min schedule Balancing need 60 min schedule

Impact of scheduling interval on reserve requirements, illustration

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21 © OECD/IEA 2018

Integrated planning frameworks

• Better integrated and co-ordinated planning can help identify appropriate options for future power systems

- Allowing for appropriate investment decisions to be made on flexible resources

Integrated planning incorporating

demand-side

Integrated generation and network planning

Cross-sectoral integration (between power and other sectors)

Inter-regional planning across

jurisdictions

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22 © OECD/IEA 2018

Examples of integrated planning

• Integrated planning incorporating demand response

- PacificCorp in the US has integrated energy efficiency and demand response into power sector planning through Integrated Resource Planning

• Integrated generation and network planning

- Examples in Texas, South Africa

- Managing two-way flows in the future needs coordination between transmission and distribution planning

• Integrated planning between the power sector and other sectors

- ENTSO-E (electricity) and ENTSO-G (Gas) has been encouraged to coordinate the 1-year electricity and gas network plans

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23 © OECD/IEA 2018

Co-ordinated transmission network planning in Europe

• ENTSO-E publishes an updated Ten-Year Network Development Plan (TYNDP) every 2 years

- Overview of transmission expansion plan in the next 10-15 years

• TNYDP is a coordinated planning initiative

• TNYDP 2016 analyses scenarios with RE penetration 45%-60% in 2030

- Identified 100 possible bottlenecks if no reinforcement solutions

Source: ENTSO-E (2016), Ten-Year Network Development Plan 2016.

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