The Power of Transformation: Wind, Sun and the Economics of Flexible Power Systems

Wind power and solar photovoltaics (PV) are crucial to meeting future energy needs while decarbonising the power sector. Deployment of both technologies has expanded rapidly in recent years, one of the few bright spots in an otherwise bleak picture of clean energy progress. However, the inherent variability of wind power and solar PV raises unique and pressing questions. Can power systems remain reliable and cost-effective while supporting high shares of variable renewable energy (VRE)? And if so, how?

Based on a thorough review of the integration challenge, this publication gauges the economic significance of VRE integration impacts, highlights the need for a system-wide approach to integrating high shares of VRE and recommends how to achieve a cost-effective transformation of the power system.

This book summarises the results of the third phase of the Grid Integration of VRE (GIVAR) project, undertaken by the IEA over the past two years. It is rooted in a set of seven case studies, comprising 15 countries on four continents. It deepens the technical analysis of previous IEA work and lays out an analytical framework for understanding the economics of VRE integration impacts. Based on detailed modelling, the impact of high shares of VRE on total system costs is analysed. In addition, the four flexible resources which are available to facilitate VRE integration – generation, grid infrastructure, storage and demand side integration – are assessed in terms of their technical performance and cost-effectiveness.

Contents;

+ Foreword

+ Acknowledgements

+ Executive summary

+ 1. Introduction
-Background
-Context
-The variability challenge
-Flexibility
-Case study areas
-This publication
-References

+ 2. System impacts of VRE deployment
-Properties of VRE generators
-Power system properties
-Integration effects and system adaptation
-References

+ 3. Technical flexibility assessment of case study regions
-Overview of case study regions and system attributes
-Current and projected VRE deployment levels
-Generation levels and short-term forecast
-Long-term projections
-FAST2 assessment
-References

+ 4. Costs and benefits: the value of variable renewable energy
-Social versus private perspective
-Going beyond generation costs
-Integration costs and the value of VRE
-Comparing the value of VRE to generation costs
-Other benefits
-Summary
-References

+ 5. System-friendly VRE deployment
-Timing and location of deployment
-VRE system service capabilities
-Size of infrastructure and VRE curtailment
-Economic design criteria
-Technology mix
-Policy and market considerations
-References

+ 6. Operational measures for VRE integration
-Power plant operations
-Transmission and interconnector operation
-Balancing area co-operation and integration
-Definition and deployment of operating reserves
-Visibility and controllability of VRE generation
-Forecasting of VRE generation
-Market design for operational measures
-Policy and market considerations
-References

+ 7. Flexibility investment options
-Measuring costs and benefits of flexible resources
-Grid infrastructure
-Dispatchable generation
-Storage
-Demande-side integration
-References

+ 8. System transformation and market design
-VRE growth and system evolution
-Strategies for flexibility investments
-VRE integration and total system costs
-Market design
-Discussion
-References

+ 9. Conclusions and recommendations
-Current experience and technical challenges
-Economics of VRE integration
-System transformation strategies
-Catalysing the transformation
-Future work

+ Annexes
-A. LCOF methodology
-B. Key modelling assumptions
-C. FAST2 assumptions and case study attributes
-D. Market design scoring
-E. Acronyms and abbreviations

Website: OECD iLibrary http://www.oecd-ilibrary.org/

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