Integration of renewable energy in China lessons learnt from Europe. Kaare Sandholt Chief expert China National Renewable Energy Centre

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1 Integration of renewable energy in China lessons learnt from Europe Kaare Sandholt Chief expert China National Renewable Energy Centre

2 China National Renewable Energy Centre Assist China s energy authorities in RE policy research, industrial management and coordination Located in Energy Research Institute of NDRC

3 ! Policy Research Industry Development Demonstration Projects management International cooperation RE Information Centre Testing centre!

4 Top 5 focus areas 1. Incentives for a flexible energy system Flexible thermal power plants Flexible use of district heating Better use of interconnectors 2. Planning for new transmission grids 3. Good wind power forecasts integrated in the system dispatch 4. Reliable wind turbines Grid code Testing and certification 5. Smart grids

5 FLEXIBLE POWER PLANTS

6 Super flexibility Danish power coal fired CHP plant Able to produce power and heat at 10% of max. capacity

7 Flexible power plants Denmark Grid code 30% of max capacity Economic incentives Marginal pricing Negative prices if production > demand CHP Heat accumulators High heat prices China Grid code 50% of max capacity Economic incentives None CHP Low flexibility Low heat prices

8 Priority dispatch in principle 1. Renewable energy wind and solar should in general have first priority Low marginal cost of power production No fuel cost No or low pollution 2. Hydro power should be used for balancing and for efficient use of the water resources 3. Thermal power plants with high investments, high efficiency and low operational cost should have second priority 4. Thermal power plants with low efficiency, high operational cost and/or high pollution should have third priority NDRC Trial dispatch rules from 2007 have these principles embedded but it has been difficult to use in practice because of the economic consequences for the thermal power plants

9 Priority dispatch in principle 1. Renewable energy wind and solar should in general have first priority Low marginal cost of power production No fuel cost No or low pollution 2. Hydro power should be used for balancing and for efficient use of the water resources 3. Thermal power plants with high investments, high efficiency and low operational cost should have second priority 4. Thermal power plants with low efficiency, high operational cost and/or high pollution should have third priority NDRC Trial dispatch rules from 2007 have these principles embedded but it has been difficult to use in practice because of the economic consequences for the thermal power plants

10 Example: One winter week Demand Estonian Power Balance Winter: week MW Hours Genera1on Demand Demand- Wind Demand- Wind- Import(net)

11 Example: One winter week Demand Demand minus wind production Estonian Power Balance Winter: week MW Hours Genera1on Demand Demand- Wind Demand- Wind- Import(net)

12 Example: One winter week Demand 1400 Demand minus wind production Estonian Power Balance Winter: week 3 Thermal production MW Hours Genera1on Demand Demand- Wind Demand- Wind- Import(net)

13 Example: One winter week Demand 1400 Demand minus wind production Estonian Power Balance Winter: week 3 Thermal production MW Hours Export out of the area Genera1on Demand Demand- Wind Demand- Wind- Import(net) Import from other areas

14 Production on each thermal power unit Electricity generation Winter: week 3 Peakload unit 1, Medium-load unit 600 MW T001 T004 T007 T010 T013 T016 T019 T022 T025 T028 T031 T034 T037 T040 T043 T046 T049 T052 T055 T058 T061 T064 T067 T070 T073 T076 T079 T082 T085 T088 T091 T094 T097 T100 T103 T106 T109 T112 T115 T118 T121 T124 T127 T130 T133 T136 T139 T142 T145 T148 T151 T154 T157 T160 T163 T S03 Baseload units 30% of max load Eesti unit 8 Balti unit 11 Eesti unit 1 Eesti unit 2 Eesti unit 5 Ahtme Plant Iru waste Parnu Plant Iru unit 2 Vao Plant Tartu Plant Gas turbine Eesti unit 4

15 Consequences for thermal power plants More wind Less fullload hours Lower income Solutions: One-time compensation Payment for other services for the power system More income from heat production Others?

16 FLEXIBLE HEAT- AND POWER PRODUCTION

17 Current system Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

18 Much wind and need for heat Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

19 Much wind and need for heat Curtailment of wind - or Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

20 Much wind and need for heat Curtailment of CHP-plant Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

21 Need for power less need for heat Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

22 Need for heat less need for power Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

23 Much wind less need for power Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

24 No wind Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat

25 A flexible power and heat system Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat BUT -

26 A flexible power and heat system Wind Fuel Wind turbine CHP Electric boiler Power Heat pump Heat storage Fuel Heat boiler Heat The current incentives do not support such flexibility

27 CNREC project under preparation Analysis of the impact of more flexible power system Economic optimisation of the whole system involved Who will benefit and who will lose with a more flexible system? Which policy measures could ensure a viable solution for all? Area: One province with interconnectors to other provinces

28 GRID PLANNING

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30 Methodology

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33 Europe power development to 2020 Capacity grows from 963 GW to 1214 GW Fossil fuels and nuclear same level High growth in RE

34 Reasons for grid expansion

35 Storage?

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37 2050 fluctuation control

38 Stakeholder involved in the Ten Year Net Development Plan

39 Conclusions on grid planning Cooperation between TSO necessary and has developed quickly based on EU legal requirements Grid planning is based on scenarios for development of load and production All stakeholders involved in the planning process through hearings etc. Location of RE crucial for the need for grid expansion

40 Challenges Difficult to predict the development of the future generation mix Long time from planning to decision and implementation Financing and public acceptance the most difficult issues to deal with How to make robust grid plans in time

41 CNREC activities Catalogue of generation technologies with future development trends - easy to compare Cost-of-Energy analyses for RE technologies compared with conventional technologies Scenario analyses to 2050 Large RE share in the Chinese energy system A large number of stakeholders involved

42 THANK YOU FOR YOUR ATTENTION