EU 2020 Targets: Managing integration of wind in the Hungarian grid. Tari Gábor CEO. Wind Energy the Facts Tari G. 12 June 2009 Workshop,
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1 EU 2020 Targets: Managing integration of wind in the Hungarian grid Tari Gábor CEO Wind Energy the Facts Workshop,
2 Contents 2 Hungarian Electric Power System the facts Generation mix Consumption trends Lack of flexibility EU 2020 Targets challenges Feed in tariff for RES & CHP Changes from 2010 Role of wind generation Conditions for further wind integration Conclusion
3 Electricity resources Gross consumption, GWh import big plants (>50 MW) small plants
4 Share of import 4 30 %
5 Hungarian generation mix 5 Composition of Generation Capacity* 15% 21% 7% 57% *on nuclear regulated not regulated small pp
6 Age of generation units 6 nominal capacity, MW ,1% < >41 >50 MW <50 MW Average of big units: 16,2% 4,4% 1,6% 16,7% age group, year 23.9 years Average of small units: 10.3 years 19,2% 12,3% 10,7% 8,7% Overall average: 22.1 years
7 Generation mix 7 Growing share of small (<50 MW) generators mainly supported RES and CHP not flexible Volatile import share matter of economy Large share of nuclear not flexible No hydro, no storage Controllable units are old inefficient, so losing market share Reserve capacity is limited and expensive
8 Development of net consumption 8 TWh 50 1,5 %/a ,5 %/a
9 Development of net consumption 9 GWh 4500,0 4000,0 3500,0 3000,0 2500,0 2000,0 1500,0 1000,0 500,0 0,0 I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. month
10 Winter and summer peaks 10 MW Year Winter Summer
11 Weekly maximum and minimum loads 11 MW MW/a 7000 y = 1,8803x , y = 0,9524x , MW/a dr. Stróbl Alajos week
12 Consumption trends 12 Economic crisis sudden decrease of demand (5 10%) much slower increase in the future larger share of domestic consumption, i.e. more volatility within the day Equalizing summer and winter peak less freedom in maintenance scheduling Need for more flexibility market products ancillary services (reserves)
13 Lack of flexible reserve power 13 MW :00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Time Nuclear <50 MW Non regulated Regulated Import Min Max Load Schedule
14 Lack of downward regulation on holiday 14
15 Insufficient secondary reserve offers 15 Year Regulation UP Regulation DOWN Total % 25 % 39 % % 17 % 43 % % 14 % 45 % % 28 % 34 % 2009/I V 22 % 88 % 92 %
16 Lack of flexibility 16 Growing number of supported generators feed in tariff is counter incentivizing for AS provision CHP is determined by heat demand, too High import share less controllable units are on line Large share of nuclear reduction of production is limited, and uneconomic anyway Conventional lignite and gas fired units are slow Pump storage, fast hydro, and such are missing
17 EU 2020 Target end use energy 17 Sweden Latvia Finland Austria Portugal Estonia Romania Denmark Slovenia Lithuania France Bulgaria Spain 34% 23,3% 31% 20,5% 25% 18,0% 24% 17,8% 30% 17,0% 25% 16,0% 23% 15,0% 23% 10,3% 9,4% 8,7% 16% 20% 49% 39,8% 42% 34,9% 38% 28,5% 20% Greece Slovakia Czech Germany Italy Hungary Ireland Cyprus Holland Belgium UK Luxemburg 6,9% 6,7% 6,1% 5,8% 5,2% 4,3% 3,1% 2,9% 2,4% 2,2% 1,3% 0,9% 18% 14% 13% 18% 17% 13% 16% 13% 14% 13% 15% 11% Poland 7,2% 15% Malta 0,0% 10%
18 Renewable electricity 18 biogas wind waste hydro from gross electricity consumption biomass Total 5,4% 4,1% 3,4% 4,1% 2,4% 0,9% 0,6% net electricity generation, GWh/a
19 Feed in tariff 19 Growing number of supported generators feed in tariff is counter incentive for AS provision CHP is determined by heat demand, too even large CHPs and biomass co firing large generators are included High import share less controllable units are on line Large share of nuclear reduction of production is limited, and uneconomic anyway Conventional lignite and gas fired units are slow Pump storage, fast hydro, and such are missing
20 Changes from Termination of licences for feed in tariff small CHPs (gas engines) old RES units Re evaluation, possible prolongation by HEO Planned tender for new wind generation licences Other types of RES Goal is approximately 3 times more generation compared to current share (13 %)
21 Role of wind generation 21 Reduction of need for fossil fuel decreasing import dependence decreasing greenhouse gas emission employment, tax payment in rural places If well managed and technically up to date, then may help its integration in the grid and in the markets
22 Conditions for further wind integration 22 Wind generation is hard to forecast large amount of data to be exchanged between generator and TSO shorter time cycles are needed for managing wind production most up to date technology must serve stability and quality for the networks, to which wind is connected Network connection requires additional investment external costs requirements set in grid codes must be fulfilled provision of ancillary services, virtual power plants Right for TSO to limit/terminate generation, if necessary
23 Conditions for further wind integration 23 Much more flexibility is needed in the power system new, efficient, controllable large units should replace old ones electricity storage would be of great importance (e.g. pump storage) more developed regional reserve markets Liquid day ahead and intra day market (PX) Harmonization between markets energy ancillary services national markets Harmonization between markets and support systems
24 Conclusion 24 The Hungarian electric power system is far from ideal for wind integration MAVIR is positive on supporting RES already nearly 200 MW of wind generation is on line new modification to the Grid Code intends to ensure further development under clear conditions evaluation of the experiences, and preparation for new procedures is running we are in continuous discussion with HEO, ministry and investors Energy policy must set up clear priorities, and guarantee the necessary conditions (financial, technical and legal)
25 25 Thank you for the good cooperation in the past, and MAVIR is open for further mutual exchange and discussion of ideas with HWEA! Thank you for your attention!
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