Pilot projects for storage: the Italian experience

Transcription

1 Pilot projects for storage: the Italian experience Andrea Caizzi AEEGSI, Italian Regulatory Authority for Electricity, Gas and Water system Infrastructure Division of the Regulation Department ICER, Bruxelles, 24 November 2014 This is not an official AEEGSI document

2 Outline The Italian energy scenario and RES penetration The legislative and regulatory framework Demonstration projects on energy-driven storage systems (ESS) operated by TSO (Energy intensive and Power intensive) Conclusions

3 The ITALIAN ENERGY SCENARIO AND RES PENETRATION

4 Gross capacity of renewables in Italy P (MW) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Biomass PV Wind Geothermal Hydro

5 Gross production from renewables in Italy GP (GWh) Biomass and waste 95,000 90,000 Photovoltaics 85,000 80,000 Wind 75,000 Geotermal 70,000 65,000 Hydro 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,

6 RENEWABLES HIGH PENETRATION: The challenge for the Italian power system RES connected rated power [GW] PhV Wind Italian Power System: 51 GW (peak), 22 GW Autorità (valley), per l'energia elettrica 35 e il gas Mill.users, 330 TWh/y 6 6

7 THE ENERGY TRANSITION: ITALY Effect of RES penetration on security Photovoltaic Load Load PV other RESs Thermal (safety min.) Import min. Non-dispatchable units D1 D2 D3 Risk of RES curtailment in Sunny Summer Sundays! Defending the system to avoid further risk on load 7

8 CRITICAL ISSUES (1) Some criticalities Modification of the residual load profile for hourly zonal loads Higher ramps during the day, to be covered by thermo and big hydro power plants Aleatory and partial invisibility of wind and PV power plants Increasing need for reserve margins because the TSO doesn t know the profile of injection from PV and wind to the grid 8

9 CRITICAL ISSUES (2): NP-RES INTEGRATION IN THE GRID In some areas (as Southern Italy) the grid is not able to accept all the NP-RES generation (470 GWh of curtailed energy from wind in 2010, progressively decreased until 2012, again increasing in 2013) The curtailed energy from wind must be replaced by conventional production (and paid to the curtailed generators too) Grid reinforcement: medium-long time scale In the short-time: well scaled and located ESS could be a choice 9

10 THE LEGISLATIVE AND REGULATORY FRAMEWORK

11 MAIN REGULATORY PROVISIONS AEEG decision ARG/elt 199/11, Annex A art. 13 (Distrib.) & 25 (Trans.): Long-term incentives: extra- WACC +2% for 12 years for selected demonstration projects. AEEG decision 288/12/R/eel: minimum requirements for ESS demonstration projects (Trans.) 11

12 THE GENERAL REGULATORY FRAMEWORK FOR NETWORK INVESTMENTS 12

13 REMUNERATION FRAMEWORK 4-year regulatory period for both quality and tariff regulation (adjusting objectives and mechanism over regulatory periods) Long-term incentives for specific investments among which investment promoting innovation: (8 to 12 years) Starting from 2012, remuneration for new selected investment is set up to 10,6%, in real terms, before taxes Electricity WACC Incentive Distribution 8,6 % +1,5% - 2% Transmission 8,4 % +1,5% 2% 13

14 DEMONSTRATION PROJECTS OF ESS OPERATED BY TSO (Energy intensive and Power intensive)

15 ESS FUNCTIONAL CHARACTERISTICS Energy intensive: great capacity - long time (hours) Power intensive: great power - short period (minutes - seconds)

16 ESS ENERGY INTENSIVE DEMO PROJECTS (6 projects) Conditions to gain extra remuneration ( WACC) Extra remuneration (+ 2% for 12 years) IF after 2 years, proponent is able to demonstrate at least 50% of RES production curtailment compared to predicted value (i.e. Project output is >50% of RES production curtailed) 16

17 ESS POWER INTENSIVE DEMO PROJECTS Power Intensive storage pilot projects are two (2) projects of 8 MW each (about 1 h of complete charge/discharge time, compared with about 7 h for the energy intensive case) specifically located in Sardinia and Sicily The two ESS must ensure ultra-rapid performance (in terms of time of discharge of energy: < 1 sec.) and at least two different technological solutions in each site Extra-remuneration IF the TSO is compliant with the duties of monitoring and disclosure as defined by the Regulatory Authority AEEG decision 43/2013/R/eel 17

18 CONCLUSIONS The Italian electricity system is changing rapidly, with increasing incidence of NP- RES and distributed generation; in this context, it is important to increase the integration of NP-RES in the grid, the predictability of the production from all power plants, the provision of network services; ESS can provide an important role but they are not necessarily the only possible solution. The Italian Regulator is actually engaged in supervising pilot projects led by the TSO for both energy-intensive and power-intensive storage systems 18