How To Integrate Renewable Energy With Smart Grids

Transcription

1 Challenges for the Market Integration of Renewables with Smart Grids IEEE PES ISGT 2012 Europe Conference Session: Economics of Smart Grids With Renewables Anke Weidlich 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT Agenda New challenges from renewables How to tap and use flexibility? Who should be responsible for balancing fluctuations? Conclusion 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT 2

2 Motivation Increasing share of decentralized power generation, especially from fluctuating renewable sources (RES) New coordination challenges Take into account regional effects Allow for short-term adjustments Market integration of renewables requires to better commercialize flexibility Demand response Flexible generation Under unbundling, it is not clearly defined who should provide and use the flexibility [CSIRO 2011] 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT 3 How to Tap Flexibility? Variable tariffs Incentives for load shifting Combined with smart meters Automated reaction from smart homes and manual load shifting Direct control Frequently (like night storage heating) In critical situations only Market-based control Applying market mechanisms as a coordination instrument Supported by automated optimization (e.g. software agents) 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT 4

3 How to Use Flexibility? Flexibility can only be used once, e.g. for 1. Minimization of procurement costs 2. Minimization of balancing power procurement for a balance responsible party 3. Support of congestion management for distribution system operators 4. Pooling for participation in wholesale trading 5. Pooling for participation in balancing power markets BRP Power Exchange Balancing Power Market Trading / contract Power delivery Flexibility 3 Decentralized Generator Consumer TSO Large Generator DSO 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT 5 Who Should be Responsible for Balancing the Fluctuations? Technical balancing Transmission system operator (TSO) Commercial responsibility for imbalances Generator Could directly even out fluctuations High effort and risk for small generators Supplier / Load Serving Entity Is in direct contact to the loads and could, e.g., send price signals New objectives for trading Distribution system operator (DSO) Knows the local conditions and aggregates over many plants No expert in trading 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT 6

4 What Changes are Possible and What is Needed? New players can establish Aggregators: aggregates flexibility of load clusters to sell it to generators, DSOs or suppliers ICT platform operators can offer the required information and services Trading will be more flexible and more short-term Trading intervals should come closer to balancing intervals (e.g. 15 minutes) Regional / local perspective could be reflected through respective products Support schemes for renewables can be adjusted Feed-in premium could replace fixed feed-in tariffs Modified feed-in priority 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT 7 Summary and Outlook Market-based coordination should be preferred for integrating RES Flexibility and location play are new aspects to take into account Smart grid / smart market concepts can help to manage fluctuations and increase efficiency in a market with high share of RES Roles and responsibilities are still unsettled in unbundled power sectors Several options are possible decisions are important Electricity trading must become more flexible and account for regional and temporal aspects 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT 8

5 Thank you for your attention. Contact Prof. Dr. Anke Weidlich Energy Economics and Energy System Technology for Decentralized Energy Systems and Smart Grids Offenburg University of Applied Sciences T +49 (0) E [email protected] 16 Oktober 2012 Economics of Smart Grids With Renewables IEEE PES ISGT