Regulatory Challenges for PV Grid Integration The German Experience

Transcription

1 Regulatory Challenges for PV Grid Integration The German Experience PV Grid Forum Poland June 6 th 2013 Rainer Brohm, Director Policy and International Affairs Ger man Sol ar Indust r y Associ at i on ( BSW- Sol ar )

2 Agenda 2 1. The German experience Photovoltaics as a major source of energy 2. Regulatory barriers and solutions 3. PV-Storage the market introduction programme

3 3 The German Solar Industry Association 3 TASK To represent the German solar industry in the solar thermal and photovoltaic sector VISION A global sustainable energy supply provided by solar (renewable) energy ACTIVITIES Lobbying, political advice, public relations, market observation, standardization EXPERIENCE Active in the solar energy sector for over 30 years MEMBERS More than 850 solar producers, suppliers, wholesalers, installers and other companies active in the solar business HEADQUARTERS Berlin

4 PV Penet r at i on 911 Framework: Solar PV Market Phases in Germany 4 Incept i on Takeof f Mai nst r eam Domi nant Novel t y Ni che Compet i t i ve St andar d 50%r enewabl e el ect r i ci t y 20%+ sol ar el ect r i ci t y Renewabl e Ener gy S our ces Act ( EG) Wi despr ead r et ai l par i t y under base case 10%of gener at i on Gener at i on par i t y El ect r i ci t y Feed- in Act 024 EG and 1 GW cumul at i ve capaci t y 4%of gener at i on

5 Development of the German PV market 5 MWp Market data PV Germany 2012 Entwicklung der PV-Installationen Jährlich neu installierte Leistung in MWp seit 2000 Marktdaten Photovoltaik in Deutschland 2012 Newly Neu installierte installed PV-Leistung* capacity GW MWp Gesamt installierte PV-Leistung* MWp Total Solarstromerzeugung** installed capacity GWp GWh Anzahl installierter Anlagen** Solar electricity production GWh No. of systems, cum Mio Share rooftop / ground-mounted: 40%/60% (kw) * gerundete Werte von Januar bis Dezember 2012 ** vorläufige Schätzung Quellen: BSW-Solar, BNetzA, EEX, Stand 01/2013

6 in million kwh 6 PV power production grows 45% yoy, achieving ca. 5% of demand 30,000 Development of PV power generation in million kwh ,060 25,000 20,000 19,340 15,000 11,683 10,000 5, ,578 4,420 3,075 2,220 1, Source: BMU, ÜNB, EEX, 2012 preliminary estimation BSW-Solar 1/ TWh have been produced in 2012, avoiding 18.6 million tonnes CO 2 in 2012

7 7 PV system prices decrease steadily Overall price reduction approx. 66 percent since Q2/2006 /kwp PV system prices decrease steadily Overall price reduction approx. 66 percent since Q2/2006 5,500 5,000 4,500 4,000 Average end-customer prices (system prices) for installed roofmounted systems of up to 10 Kilowatt peak per kilowatt peak without tax 3,500 3,000 2,500 2,000 1,684 1,500 1,000 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: BSW-Solar PV Price Index 2/2013

8 Further installation of PV will not drive the cost up much more in Cent / kwh 0, 14 in GWp 0, 12 0, 1 0, 08 0, 12 0, 1 0, 1 0, 1 0, 09 7, 4 7, 5 7, 4 0, 08 0, 08 6, 5 6, 5 8, 3 0, 06 3, 8 0, 05 0, 04 0, 02 0, 6 0, 93 0, 85 1, 27 1, 94 0, 031 0, 019 0, 012 0, Quelle: Prognos AG, BNetzA, Mittelfristprognose ÜNB, St and 1/ 2012 Erhöhung der EG- Uml age pr o 1 GW Zubau PV-Addition Neuzubau in PV-systems according to utility network prognosis Cost i ncr ease per GWp PV

9 PV brings down electricity prices peak load prices at midday fall by up to 40 percent 9

10 Network integration of PV is technically feasible and financially viable 10 Germany is planning to have at least 50 GW of PV power (10% of demand) in 2020, supported by the FIT. Optimization measures for PV system technology (in particular reactive power supply) and in the network (in particular on load tap changers) can reduce costs of distribution network enforcement by 60%. The integration of substantial amounts of solar power to 2020 is viable and feasible, both in terms of technology and cost!

11 1 Germany 2012: 5% of annual demand but up to 50% power to demand ratio on weekends Source: Fraunhofer ISE

12 12 23 GW PV at mid day on May 5 (50% of demand) It works! Source: SMA Techology AG

13 13 Regulatory barriers

14 Current regulation for facilitating PV grid integration 14 PV systems > 30 kwp must be equipped with a means to curtail power by remote control, systems > 100 kwp have to implement additional communication interfaces to send live data on power fed into the grid to DSO ( 6 EEG) Network operator may curtail power in case of too much power in the grid Mainly ripple control receivers are used Trend towards GSM based remote control systems Typically 4 power steps: 100%, 60%, 30% and 0% PV plant operator gets losses compensated PV systems > 30 kwp and < 100 kwp must comply as of grid connection 2009 or later (Retrofit of ~ systems)

15 Basic requirements for enabling further efficient grid enforcement in Germany 15 Active, coordinated and long-term planning of destribution grids reduces the costs for grid enforcement, e.g.: Considering replacement investments Comprehensive planning over all voltage levels Voltage stabilization by reactive power integration Regulatory framework: Existing revenue streams for DSOs are not sufficient: Revenue caps /expansion factor should be redesigned flexibly to consider long-term investments of innovative technology (e.g. onload tap changer) Smart meter deployment may foster/help to allow a quicker implementation of some of the technical solutions identified in the project

16 16 Preferred technical solutions in LV grids according to PV Grid Technical solution CZ DE ES IT Curtailment of power feed-in at PCC Network Reinforcement Reactive power control by PV inverter Q(U) Q(P) Active power control by PV inverter P(U) Prosumer storage On Load Tap Changer for MV/LV transformer Urgency to adapt regulations Should be applied where problems occur

17 Barrier and Solution for Germany: Limited RES-Curtailment 17 Problem: curtailment is only accepted for system security reasons in emergency situations Challenge: advanced, but limited curtailment reduces grid expansion (EWE: 5% controllable curtailment of power production doubles grid integration capacity of RES) Possible conflict: 1. curtailment implies investment insecurity and puts RES growth under risk (if losses are not fully compensated) 2. shift towards less efficient but grid compatible plant locations Discussed recommendation: Advanced curtailment of RES by DSO might help to reduce network investments.

18 Barrier and Solution for Germany: Access to advanced inverter capabilities 18 State of the Art inverters are able to provide a lot of functionalities to support network stability. Problem: Even if DSOs are allowed to contract these functionalities, there is no general use of these measures yet due to the lack of experience and unclear rules and standards. Regulation must be adapted.

19 Barrier and Solution for Germany: Storage Use (by DSO) 19 Due to the concept of unbundling, DSOs are not allowed to sell energy to final customers. Problem: DSOs are not allowed to own, operate or use storage to fulfill their future grid stabilization tasks Recommendation: Due to the capabilities of storages to optimize the rate of grid utilization, voltage controlle etc there should be a reflection on how to activate these potential for DSO use.

20 20 PV Storage Experiences from Germany

21 Potential for direct on-site consumption in Germany: >43 TWh (2012: 2-3 TWh) 21 On-site consumption potential highly dependent on the relationship between electricity generation, consumption, and load profile Demand-side-management and storage can improve direct consumption ratio

22 2 PV storage systems as driver for investments and reaching competitiveness for photovoltaics Investor perspective: High self-consumption ratio increases profitability of PV systems and reduces electricity bills of prosumers -> Incentive for future investments From Roland Berger, PV-Roadmap 2.0: Self-consumption ratio crucial for time of reaching competitiveness of PV systems (residential 5 kwp)

23 Small-scale PV storage systems can relieve the grid 23

24 Support program for battery storage systems to took effect on May 1 st Status: Content-related requirements and technical prerequisites,: - PV system cap of 30 kwp - Effective power reduction to 60% - Fair value replacement guarantee (7 years) - Disclosure of various interface points Total volume of the program reduced to 25m (around systems in 2013, increase to 50m as of 2014 planned. Support: up to 660 Euro per installed kwp PV. For a 5 kwp system: around Euro Grid benefits (study of BSW / Fraunhofer): Power peaks can be reduced by 40% without power losses by curtailment Increase of up to 66% of integration capacity in the local grid BSW-Solar

25 Conclusions 25 Grid integration of large scale photovoltaics is possible! Main technical solutions are identified and have to be implemented, regulatory barriers have to be tackled. PV industry, DSOs and regulators/government should work together. Self-consumption of PV energy will be a main driver of rentability of PV systems and will help photovoltaics to reach competitiveness. Energy markets have to be adjusted for energy transition towards higher shares of renewable energy. Decentralised PV storage strenghtens self-consumption and can be beneficial for distribution grid in multiple ways. At the end: All can benefit!

26 26 Thank you for your attention Rainer Brohm Director Policy and International Affairs German Solar Industry Association Source: Solarmarkt