European Wind Integration Study (EWIS) Towards a Successful Integration of Wind Power into European Electricity Grids

Transcription

1 European Wind Integration Study (EWIS) Towards a Successful Integration of Wind Power into European Electricity Grids EWIS Concluding Discussion 13th April 2010, Brussels Quantification of Costs and Benefits Mr. Thomas Meister

2 Overview Main Findings Benefits of adding wind power to the system Integration Costs Adding 29 cross-border grid reinforcements Enhanced Network Support Costs Storage as efficient mitigation measure?

3 Main findings 1 Benefits due to reduced CO 2 -emission and fossil fuel usage are significant reduction in operational costs ~ 20B /yr Integration Costs are relatively small compared to benefits ~ 770M Imminent and continuing need for grid reinforcements as these levy congestions and introduce welfare gains! indicative cost for necessary internal grid reinforcements 29 cross-border grid reinforcements : indicative cost ~ 10,5B ~12,3B : indicative benefit ~1,95B /yr (cfr. ENTSO-E 10YNWDP estimating 28B grid investments needed over next 5 years) Significant support to wind energy in order to achieve 2020 target 1: assuming high fuel and CO2 prices and ca. 185GW wind capacity installed in 2015

4 Benefits of adding wind power to the system 5,000 CO2 cost CO2 startup cost Fuel cost Fuel startup cost OMV cost Total energy cost 0 mio EUR 5,000 10,000 15,000 significant savings resulting from reduced fuel usage and CO2 emissions. The reductions are increasing with more wind added onto the system and with higher fuel and CO 2 prices BE LC BE HC OPT LC OPT HC 20,000 Cost types

5 Integration Costs The main drivers of these system related costs are the uncertainty and unpredictability of wind. Uncertainty drives the need for more starts and stops of conventional power stations, and unpredictability drives the need for more flexible dispatch mio EUR BE LC BE HC OPT LC OPT HC Case

6 Adding 29 cross-border reinforcements total cost savings effect of the investigated enhancement of the 29 interconnectors compared to a situation without the enhancement amounts to 1,925B. total exchanged electricity in the European grid raises from 613 TWh to 844 TWh!

7 Support costs applied on 2015 capacities 20,000 Comparison of overall support cost for new installations ( ) for different support, deployment and boundary condition scenarios 18,000 Onshore Offshore 16,000 14,000 12,000 10,000 8, ,000 4,000 2,000 0 Actual Low Optimal Low Actual High Optimal High Actual Low Optimal Low Actual High Optimal High Best estimate Wind optimistic Annuity of support cost in M '08/yr

8 Storage as efficient mitigation measure? Range of annual fixed cost per GW (investment and fixed O&M) for different storage options and for increasing interconnection capacity to Nordic region Range of operational cost savings (fuel, CO2, var O&M) per GW installed storage capacity in Reference scenario (mln /year) Range of operational cost savings (fuel, CO2, var O&M) per GW installed storage capacity in scenario Wind Optimistic (mln /year) large scale pumped hydro storage appears not economic in the Netherlands, due to high capital cost. To a lesser extent this is also true for the CAES in Germany. mln low capital cost to increase storage capacity in the Alp region and Spain installation of extra storage capacity could be beneficial Hydro Alps Hydro Netherlands variable operation cost of the electricity system are reduced: expensive peak generation can be replaced by generation from storage, which was filled with cheaper off-peak generation CAES Germany Hydro Spain variable cost reduction by storage decreases at higher levels of installed wind capacity. This is caused by the fact that the difference in peak and of peak cost decreases in general if more wind is brought into the system Nordic Interconnection