PV GRID. Efficient Grid Integration of European PV: Project Results. Jörg Mayer, Managing Director German Solar Industry Association (BSW-Solar)

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1 PV GRID Efficient Grid Integration of European PV: Project Results Jörg Mayer, Managing Director German Solar Industry Association (BSW-Solar) 16th September

2 PV GRID Key facts An Intelligent Energy Europe project Derived from the previous PV LEGAL project 20 project partners, covering 16 EU Member States: Austria, Belgium, Bulgaria, Czech Republic, France, Germany, Greece, Italy, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, the Netherlands, United Kingdom The project is funded by the European Commission under the Intelligent Energy Europe programme Project timeframe: May 2012 until October 2014 Project coordinator: BSW-Solar Partners include ENEL Distribuzione (Italy) and RWE Deutschland AG (Germany), providing expertise & their view on regulatory and normative barriers and solutions; EPIA and 15 national PV associations as well as eclareon, DERlab and IIT Comillas PV GRID: Countries covered 2 29/09/2014 2

3 PV GRID Objectives Reduce the barriers hampering large-scale integration of PV systems on distribution grids across Europe: Particular focus on Czech Republic, Germany, Italy and Spain Rank the effectiveness of technical solutions available Analyse the barriers hampering their implementation Devise and promote recommendations towards their adoption Ease the administrative requirements and procedures necessary for installing, connecting to the grid and operating a PV system in Europe PV GRID database as a tool for project developers and policy makers National forums and workshops for bringing national stakeholders together and discuss solutions Favour knowledge transfer between European countries 15 national industry associations working together with DSOs, consultancies and research institutes International dissemination activities 29/09/2014 3

4 Project workflow WP1: Management Advisory Committee Project Meetings WP3: PV GRID Discussion Working Groups & Recommendations WG 1 WG 2 Solutions WG 3 Barriers Barriers WP2: Research & PV GRID database WP4: EU & national Dissemination EU events Proposals National workshops National forums Publications 4 29/09/2014 4

5 WP2 PV development framework research Assessment of national PV development frameworks in each of the 16 participant countries, offering for each of the 3 market segments (Residential, commercial and industrial ground-mounted PV systems) a description of: Administrative/grid connection procedures and requirements Duration and costs involved Market barriers and solutions Research carried out by national solar industry associations, complemented with interviews with national PV system developers and operators. Targeted at both project developers and policymakers Freely accessible online in the PV GRID database at: PV GRID: Countries covered 29/09/2014 5

6 WP2 Summary of national PV development frameworks and market status Status of the residential systems segment Legend Status of the commercial systems segment Status of the industrial ground-mounted systems segment Most notable: Steep decline in the industrial ground-mounted systems segment, as it appears to only remain active in three of the sixteen analysed countries: Germany, Greece and UK. Source: PV GRID Database, last updated in June /09/2014 6

7 Project workflow WP1: Management Advisory Committee Project Meetings WP3: PV GRID Discussion Working Groups & Recommendations WG 1 WG 2 Solutions WG 3 Barriers WP2: Research & PV GRID database Barriers WP4: EU & national Dissemination EU events Proposals National workshops National forums Publications 7 29/09/2014 7

8 WP3 The European Advisory Paper Situation Analysis Broad assessment of academic publications available at the beginning of the project (roughly 160 studies were evaluated and incorporated into the groundwork and foundation of PV GRID) Identification of the most promising technical solutions addressing voltage issues and local congestions in distribution networks (MV and LV) 29/09/2014 8

9 WP3 Technical solutions for grid integration (MV and LV) 9

10 WP3 The European Advisory Paper Situation Analysis Broad assessment of academic publications available at the beginning of the project (roughly 160 studies were evaluated and incorporated into the groundwork and foundation of PV GRID) Identification of the most promising technical solutions addressing voltage issues and local congestions in distribution networks (MV and LV) Evaluation& Prioritisation Qualitative analysis of technical solutions carried out by project partners (particularly DSOs & national PV Associations) & other national experts based on the following criteria: investment costs, impact on voltage & congestion, technology availability, applicability within existing regulations Prioritising technical solutions based on analysis and evaluation results (effectiveness and regulatory priority of technical solutions) 29/09/

11 WP3 Sample of most effective solutions at MV level Technical solution CZ DE ES IT Network Reinforcement Reactive power control by PV inverter Q(U) Q(P) Curtailment of power feed-in at PCC Active power control by PV inverter P(U) Network Reconfiguration SCADA + PV inverter control (Q and P) Advanced voltage control for HV/MV transformer Adoption of solution requires regulatory changes Can be applied where problems occur Note: As curtailment is legally possible under the EEG in Germany, though is considered to be an exemption from the DSO s general duty to provide capacity and to enhance the grid infrastructure, German members of the PV Grid consortium opted for a green/red indication, i.e. curtailment can be applied if problems occur, though a more general adoption of the solution requires regulatory development. 11

12 WP3 Sample of most effective solutions at LV level Technical solution CZ DE ES IT Curtailment of power feed-in at PCC Network Reinforcement Reactive power control by PV inverter Q(U) Q(P) Active power control by PV inverter P(U) Prosumer storage On Load Tap Changer for MV/LV transformer Adoption of solution requires regulatory changes Can be applied where problems occur Note: As curtailment is legally possible under the EEG in Germany, though is considered to be an exemption from the DSO s general duty to provide capacity and to enhance the grid infrastructure, German members of the PV Grid consortium opted for a green/red indication, i.e. curtailment can be applied if problems occur, though a more general adoption of the solution requires regulatory development. 12

13 WP3 The European Advisory Paper Situation Analysis Broad assessment of academic publications available at the beginning of the project (roughly 160 studies were evaluated and incorporated into the groundwork and foundation of PV GRID) Identification of the most promising technical solutions addressing voltage issues and local congestions in distribution networks (MV and LV) Evaluation& Prioritisation Qualitative analysis of technical solutions carried out by project partners (particularly DSOs & national PV Associations) & other national experts based on the following criteria: investments costs, impact on voltage & congestion, technology availability, applicability within existing regulations Prioritising technical solutions based on analysis and evaluation results (effectiveness and regulatory priority of technical solutions) Identification of normative and regulatory barriers hampering the application of technical solutions Barrier Analysis 29/09/

14 WP3 Overview of identified challenges and barriers in the European Union Insufficient Framework for Prosumer Storage Solutions Insufficient Framework for DSO Storage Solutions Insufficient Self- Consumption Framework Insufficient Framework for Demand Response Insufficient DSO Access to Advanced PV Inverter Capabilities Incoherent Metering Framework Rules forbidding RES Energy Curtailment except for security issues Application of technical solutions is either strongly restrained or not possible at all Regulatory Frameworks that do not Incentivise Smart Grids Development 29/09/

15 WP3 The European Advisory Paper Situation Analysis Broad assessment of academic publications available at the beginning of the project (roughly 160 studies were evaluated and incorporated into the groundwork and foundation of PV GRID) Identification of the most promising technical solutions addressing voltage issues and local congestions in distribution networks (MV and LV) Evaluation& Prioritisation Qualitative analysis of technical solutions carried out by project partners (particularly DSOs & national PV Associations) & other national experts based on the following criteria: investments costs, impact on voltage & congestion, technology availability, applicability within existing regulations Prioritising technical solutions based on analysis and evaluation results (effectiveness and regulatory priority of technical solutions) Identification of normative and regulatory barriers hampering the application of technical solutions Barrier Analysis Results Development of regulatory and normative recommendations aimed at reducing and removing the current barriers to technical solutions Seeking feedback on project results from relevant national stakeholders PV GRID Roadmap Disseminating project results and recommendations 29/09/

16 IDENTIFIED BARRIERS Rules forbidding RES energy curtailment except for security issues SITUATION RES curtailment is only allowed for transmission system security reasons, not in case of local voltage or load constraints (priority dispatching) No conditioned PV/DG connection is allowed connection solutions become more complicated RECOMMENDATIONS Curtailment of RES should be allowed to DSOs in National Regulations (for new RES installations) Boundary conditions must be defined in technical standards (providing transparency and no discrimination) Adequate compensations should be foreseen for curtailed RES operators 29/09/

17 IDENTIFIED BARRIERS Insufficient self-consumption frameworks SITUATION In certain European countries, self-consumption of PV produced electricity is not allowed Proper incentives and/or self-consumption obligations are not set RECOMMENDATIONS Rapidly introduce, for those countries that do not have it in place yet, self-consumption of produced PV electricity Introduce proper economic incentives, stimulating PV electricity self-consumption to contribute to network operation (reducing peaks) Define (reasonable) self-consumption obligations for newly-connected RES, in order to ensure transparent and non-discriminatory planning criteria 29/09/

18 IDENTIFIED BARRIERS Insufficient DSO access to advanced PV capabilities SITUATION Existing national regulations do not allow DSOs to make use of available capabilities of inverters, even though these are available and in certain cases have already been included among mandatory requirements Lack of experience and clear rules for exploiting such functionalities RECOMMENDATIONS DSOs should be provided with access to advanced PV inverter capabilities: the applicability of relevant technical solutions and their specifications should be defined by the competent national regulatory authorities An economic compensation for DG operators providing these services should be discussed, defined and put in place Mechanisms to avoid conflict of interests with the TSOs and energy providers shall be put in place 29/09/

19 IDENTIFIED BARRIERS Insufficient Framework for Prosumer Storage Solutions DESCRIPTION Prosumer storage allows for peak reduction and predictability of PV production profile In general, prosumer storage is allowed in most European countries Not allowed in Czech Republic and Spain In many countries, the connection and operation requirements of storage devices suffer from lack of clarity Open debate on whether/how prosumer storage equipment should be incentivised e.g. KfW subsidy scheme in Germany RECOMMENDATIONS Prosumer storage solutions should be allowed by national regulatory frameworks. The connection and operation requirements currently under discussion should ensure that prosumer storage does not pose a security problem to the system or interfere with the metering of DG production. 29/09/

20 IDENTIFIED BARRIERS Insufficient Framework for DSO Storage SITUATION Current national regulations do not foresee DSOs making use of storage systems (due to unbundling rules) and do not provide clarity about how storage energy must be treated within the electrical market structure RECOMMENDATIONS Roles, rights and limitations of DSOs in the use of storage must be clearly defined by national regulatory authorities It can be reasonably expected that local securityrelated capabilities should be made available to DSOs 29/09/

21 IDENTIFIED BARRIERS Insufficient Framework for Demand Response DESCRIPTION Basic ToU tariffs-based demand response and load curtailment services are available in many countries Addressing the intermittency of PV requires more interactive and advanced demand response services operated by DSOs DSOs are not expected to exchange information about energyrelated economics with final customers Distribution network-related services, and their economical treatment, are not defined by regulation for passive customers RECOMMENDATIONS Technical features and market models for Demand Response should be assessed taking into account that they are related to wider objectives than the mere integration of DG. Market model-neutral enabling factors, such as the communication between DSO and final customers, can and should be defined as soon as possible. DSOs should be allowed to manage load reduction and activation services in order to fully utilise any DSM potential. 29/09/

22 IDENTIFIED BARRIERS Incoherent metering frameworks DESCRIPTION Smart meters are promoted by European legislation 80% target for 2020 National members shall run a CBA analysis to set their own targets Several countries have not published CBA results nor set their targets Deployment is often limited to consumers and not DG Smart meters per se are not sufficient: they need to be complemented with other equipment and business models/applications RECOMMENDATIONS For smart meters deployed on DG, it should be ensured that their potential is used for implementing telemetry and other applications increasing the hosting capacity of the distribution network Mandatory introduction of intelligent metering systems should be assessed carefully. It may be the case that installing the required intelligent infrastructure is only viable with large-scale PV installations. 29/09/

23 IDENTIFIED BARRIERS Regulatory frameworks that do not incentivize Smart Grid development SITUATION The aim to develop a Smart grid at European level is in conflict with national regulations, establishing the conditions for DSOs recovering their investments. These regulations promote efficiency and may not favour risky long term investments such as those involved with Smart Grid The Regulatory environment in Italy is theoretically favorable towards Smart Grid, as since 2007 an incentive for Smart Grid installations was foreseen. However, until now the NRA has not yet stated what can be considered as a Smart Grid, and incentives only apply to specific innovation projects individually selected by NRA RECOMMENDATIONS Ensure that the regulatory framework promotes Smart Grid investments If necessary, establish explicit incentives: an exhaustive definition of equipment considered as Smart Grid and a systemic incentive mechanism for it should be defined. 29/09/

24 Key Results Debate on Curtailment Curtailment as a technical solution can make sense from a global economic point of view if the compensation to the PV agent for curtailment is lower than the cost of the reinforcements required for preventing it. Otherwise the network should be expanded or reinforced. For this solution to be applied, it is necessary to open a fair debate on the use of curtailment of PV electricity. This debate should cover the determination of 1) a national cost-benefit analysis methodology, 2) boundary conditions and 3) adequate compensation rules for the PV agent. 29/09/

25 Key Results Control over PV inverters Some of the prosumer and interactive solutions require controlling the PV installation. In the case of interactive solutions, the necessity of allowing the DSO some kind of control over the PV inverter appears essential. If advanced technical solutions are available in the PV inverter, the DSO shall have access to them, so that they can be really used for solving congestions or voltage issues in the distribution grids. The boundary conditions for using these solutions must be clearly defined by the competent national authority. 29/09/

26 Key Results DSO investment recovery and further development of regulatory frameworks A common topic to be addressed for all the technical solutions is that the DSO has to be remunerated for their investments in implementing these technical solutions. National regulators should adjust DSOs investment and cost recovery schemes so as to encourage the investments needed for the decentralisation of the energy system and the roll-out of technical solutions enhancing grid integration of PV and other smart grid investments A consistent and detailed regulatory and economic framework for using Demand Response, storage solutions, smart metering and smart grids needs to be further developed. 29/09/

27 Key Results: PV GRID Roadmap and its Perspective Generic illustration allows for broad application in different countries Basic assumptions of PV GRID and guiding principles for applying the Roadmap: A (large-scale) increase in the penetration of PV is a given political goal; PV is granted priority access to the grids and priority dispatching; Generic analysis doesn t consider any specifics of support schemes, as this allows for application in all EU-member states; Nonetheless, certain correlations can be assumed and certain support schemes will support peculiar types of installations better or more than others, o e.g. tender schemes likely lead to rather large PV systems; The type and size (i.e. maximum capacity) of any RES installation will to a large extent determine the network level it will be connected to; And the network level of connection determines the applicability and relative advantage of the technical solutions identified by PV GRID. 29/09/

28 Roadmap for Increasing PV Penetration on the Distribution Grid NO YES Is PV hosting capacity available? NO YES, but only in certain regions Shall grid hosting Capacity only be used in these regions? YES Out of the scope of PV GRID What is the technical issue? Other issues Voltage or Congestion issues Refer to Chapter 3 to identify relevant technical solutions for LV and MV distribution networks. Are identified technical solutions applicable? From here onwards flowchart is to be applied for each technical solution NO For what reasons are technical solutions not applicable? Technology is not mature Solution not applicable YES Normative framework conditions Regulatory framework conditions Is financing for technical solutions covered by regulatory framework? YES NO Adjustments to normative framework needed Adjustments to regulatory framework needed Apply solution Adjustments to regulatory framework economic conditions needed 28 29/09/

29 European Advisory Paper Final European Advisory Paper, including all Annexes, is available from: Annex 1: offers a deeper analysis for the four PV GRID focus countries : Germany, Italy, Czech Republic and Spain Annex 2: offers a deeper analysis of four additional countries : France, United Kingdom, Greece and the Netherlands Annex 3: offers an overview of the national barriers assessment process and its results that was carried out in all 15 countries participating in PV GRID 29/09/

30 Thank you for your attention Jörg Mayer Please have a look at: Disclaimer: The sole responsibility for the content of this presentation lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein.

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