Power System Flexibility in the German and European Context

Transcription

1 Power System Flexibility in the German and European Context Katharina Grave BMWi Referat IIIB Referent 1

2 What is flexibility? 11/7/2017 2

3 The potential for flexibility lies within supply, demand and storage technologies supply side: x to power markets / grid demand side: power to X storage technologies: power to x to power 11/7/2017 3

4 Source: Ecofys 2014 On the supply side, power plants adjust their production to demand Merit order (stylised) Price in /MWh Demand: 60 GW 100 Price: 75 /MWh Price: 35 /MWh 50 RES nuclear lignite hard coal gas oil Power plant dispatch in GW 11/7/2017 4

5 Power demand (GW) On the demand side, electricity consumers might shift their demand in time Peak clipping Valley filling Time (h) 11/7/2017 5

6 Source: ENTSO-E Germany is one market zone within the meshed European transmission grid 11/7/2017 6

7 Source: Epex spot European markets have been coupled with each other there is one price mechanism 11/7/2017 7

8 Why is flexibility important? 11/7/2017 8

9 Gross electricity production in TWh Source: Ecofys 2017 based on BMWi 2016, AGEB 2017 Renewables have become Germany s No. 1 source of electricity Electricity mix in 2016 (648.4 TWh in total) nuclear: 13% hard coal: 17% mineral oil & others: 5 wind: 12% solar: 6% lignite: 23% gas: 12% RES: 29% biomass & waste: 8% hydro: 3% hard coal lignite natural gas mineral oil others nuclear renewables * preliminary data rounded figures 11/7/2017 9

10 Renewables challenge the system in times with low demand, but high RES-production Summer weekend: High wind production High PV production Low demand 11/7/

11 Renewables challenge the system in times with high demand, but low RES-production Winter evening: Low wind production No PV production High demand for electricity 11/7/

12 For both challenges, there are plenty of flexibility options High RES / low demand Reduced thermal production Additional demand Storage (demand) Export Low RES / high demand Flexible thermal production Reduced or shifted demand Storage (production) Import 11/7/

13 Source: Fraunhofer ISE 2016 Power generation (GW) The German power plants partly adapted to the additional demand for flexibility Winter 2016 week no. 50 (December) Summer 2016 week no. 20 (May) solar seasonal storage oil hard coal nuclear hydro wind pumped storage gas lignite biomass 11/7/

14 Source: Ecofys 2014 Renewables change the results in wholesale markets Merit order (stylised) Price in /MWh Demand: 60 GW 100 Price: 75 /MWh Price: 35 /MWh 50 RES nuclear lignite hard coal gas oil Power plant dispatch in GW 11/7/

15 Source: Fraunhofer ISE 2017 power (GW) price (Euro/MWh Prices in the wholesale markets react to the supply of renewables Summer 2016 week no. 19 (May) solar wind export import conventional plants load day ahead auction price average intraday price 11/7/

16 Source: Fraunhofer ISE 2017 power (GW) price (Euro/MWh Prices in the wholesale markets react to the supply of renewables Last week solar wind export import conventional plants load day ahead auction price average intraday price 11/7/

17 Source: Ecofys 2015 System Net Demand (GW) The structure of residual demand will change further with rising shares of renewables PEAK LOAD MIDLOAD BASELOAD Hours No RES 40% 80% 11/7/

18 BMWi: White Paper (2016) Germany recently reformed its electricity market system to facilitate flexibility Guaranteeing free price formation in wholesale markets (no price caps) Strengthening obligations to uphold schedules for demand and supply Shortening trade and balancing periods (to 15 minutes) Opening balancing markets for new providers Setting and clarifying rules for aggregators Gradually introducing smart meters Flexibilize power plants (especially combined heat and power production) 11/7/

19 BMWi: White Paper (2016) In an intensive discussion process, future trends have been identified The system is shaped by the intermittent generation of electricity from the wind and sun There is a significant decline in the use of fossil fuels in the power plant fleet The electricity markets are more European Security of supply is guaranteed within the framework of the European internal market Electricity is used far more efficiently The heating Mainly sector, fossil cars and industry use more renewable electricity instead of fossil fuels Modern CHP plants produce the residual electricity and contribute to the further energy transition Biomass is used increasingly for transport and industry Sector coupling Well developed grid infrastructures create flexibility at a low cost System stability is guaranteed even with a large share of renewables in the energy mix Grid financing is fair and meets the needs of the system The energy sector takes advantage of the opportunities offered by digitisation 11/7/

20 A concluding paper presents trends and discussions from working groups concluding-paper.pdf 11/7/

21 Thank you for your attention Contact details Bundesministerium für Wirtschaft und Energie Referat IIIB1 Scharnhorststr Berlin Katharina Grave Referent 21

22 Power System Flexibility in the German and European Context Katharina Grave BMWi Referat IIIB Referent 22