Introduction to the IMPROGRES project. Martin Scheepers (Coordinator)

Transcription

1 Introduction to the IMPROGRES project Martin Scheepers (Coordinator) 1

2 2 3 energy network companies and 4 research institutes from 5 EU member states will work together..

3 in the IMPROGRES project to improve the social optimal outcome of market integration of distributed generation (DG) and electricity from renewable energy sources (RES-E) in European electricity markets during 2,5 years (September 2007-March 2010) spending 879,000 receiving 439,500 from the EU Intelligent Energy Europe program 3

4 What is the problem? Increase in DG/RES-E electricity production leads to: Increase in power generation costs electricity from RES is relatively more expensive than conventional power production Increase in network integration costs e.g. reinforcement costs Increase in system integration costs e.g. increasing balancing costs due to intermittent power production 4

5 How will the IMPROGRES project address this problem? 1. Quantifying the cost impact of DG/RES-E for: generation (reflected in support mechanisms) network integration system integration 2. Identifying options that minimize the overall cost impact 3. Recommending policy and regulatory improvements that minimize overall cost impact that maximize benefits of growing DG/RES-E supply 5

6 Small amount of DG/RES-E has only limited effects on electricity system costs money flow Support Support Mechanism Mechanism Funding through TSO or tax system production subsidy or feedin tariff Consumers Consumers Power Power Market Market DG/RES-E DG/RES-E electricity end-user price electricity market price TSO TSO Balancing Balancing TSO TSO Ancillary Ancillary services services network tariffs network tariffs Grid Grid 6

7 increasingly large amount DG/RES-E will have large impact on electricity system costs money flow Support Support Mechanism Mechanism Funding through TSO or tax system production subsidy or feedin tariff Consumers Consumers Power Power Market Market electricity end-user price electricity market price TSO TSO Balancing Balancing TSO TSO Ancillary Ancillary services services network tariffs network tariffs Impact on balancing costs Grid Grid Large budget increase DG/RES-E DG/RES-E Impact on market prices Impact on grid costs 7

8 Impact of increase DG/RES-E on generation costs Generation costs, incl. balancing Costs Social benefits: No direct CO 2 -emissions Reduce fossil fuel independency Generation costs incl. external benefits 0 RES-E/DG penetration over time (%) 8

9 Impact of increase DG/RES-E on network integration costs Generation costs, incl. balancing Costs Initially DG/RES-E has positive impact Generation costs incl. external benefits Network integration costs 0 Innovative network integration RES-E/DG penetration over time (%) 9

10 Impact of increase DG/RES-E on overall costs Generation costs, incl. balancing Overall costs incl. externalities Overall costs incl. innovations Costs Generation costs incl. external benefits Is there a minimum cost level? Network integration costs 0 Innovative network integration RES-E/DG penetration over time (%) 10

11 Regional case studies Union Fenosa (Spain): the 45 kv ring in Aranjuez (Madrid region) will include the LV and MV network with PV development mainly on the MV network MVV Energy (Germany): the Wallstadt Nord case DG/RES developments will take place on the LV network (micro CHP and PV). Continuon (The Netherlands): the Kop van Noord Holland case focus on the MV network with further increase of wind and CHP production and consequences for the HV network 11

12 Regional case studies Scenario on DG/RES-E development up to 2020/2030 Calculation of network integration costs: without DG/RES-E development with DG/RES-E development and conventional network planning with DG/RES-E development and alternative options for DG/RES-E integration (e.g. active network management) Determination of extra generation costs costs related to support mechanisms extra electricity system costs (e.g. balancing costs) business as usual (reference) with alternative policies, regulation and market responses 12

13 The project structure (1) WP4 WP3 WP5 Cases DSO DSO Regulatory framework Balancing mechanism Support scheme DG-RES scenarios DG-RES scenarios DG-RES scenarios Scenario assumptions Electricity demand Increase number of of connections Reference scenarios Response scenarios Response scenarios Response scenarios 13

14 What will we learn from the regional case studies? The regional case studies enable us to: Identify the driving factors that cause an increase in overall system costs when DG-RES-E increases Identify which alternative options are available to minimize overall cost impact maximize benefits of growing DG/RES-E supply Analyse the role of policy and regulation in improving optimal social outcome of large amount of DG/RES-E 14

15 The project structure (2) WP1 WP1 Project management WP2 WP2 Assessment of of DG/RES DSO DSO market market interactions WP3 WP3 Scenarios for for EU EU energy energy futures WP4 WP4 Case Case studies WP5 WP5 Response alternatives WP6 WP6 Policy Policy analysis WP7/WP8 Dissemination 15

16 16 Project planning 10/07 12/07 02/08 04/08 06/08 08/08 10/08 12/08 02/09 04/09 06/09 08/09 10/09 12/09 02/10 04/10 06/10 Kick Off Project meeting Mid-Term Conference Final Conference Project meeting Project meeting Amsterdam Madrid Copenhagen Vienna Kassel Amsterdam WP3 WP2 Project meeting Project meeting WP6 WP5 WP4 WP1 / WP7 / WP8 Progress report Interim report Final report

17 17 For more information and project results: