Pilot projects for storage: the Italian experience

Similar documents
RES Revolution! How the Sun and the Wind changed the Italian Electricity Market

Renewable sources of energy, dispatching priority and balancing the system, facts and options: Part I

Lesson learned about the integration of large amount of volatile Renewable Energy Resources

Moving Ontario to a 100% renewable electricity grid: system operation for renewable integration

Three Years of Italian Green Certificates: a First Assessment

Levelized Cost of New Generation Resources in the Annual Energy Outlook 2012

TECHNICAL AND ECONOMIC ANALYSIS OF THE EUROPEAN ELECTRICITY SYSTEM WITH 60% RES

Capacity reserves until 2025: declining, but sufficient

Prof. Hans Müller-Steinhagen, D.Eng., Dr.-Ing. (habil), FREng, FIChemE

PJM Renewable Integration Study. Ken Schuyler Renewable Energy in West Virginia June 5, 2014

Table of contents. 1 Introduction System impacts of VRE deployment Technical flexibility assessment of case study regions...

The SOLID DER Project Outputs, Distributed generation development in Lithuania

World Small Hydropower Development Report 2013

TECHNICAL AND ECONOMIC ANALYSIS OF THE EUROPEAN ELECTRICITY SYSTEM WITH 60% RES EDF R&D

CHALLENGES OF INTEGRATING RENEWABLE ELECTRICITY GENERATION INTO MARKETS AND GRIDS - THE CASE OF GERMANY FEEM SEMINAR, 02 FEBRUARY 2012, MILAN

Decarbonization pathways and the new role of DSOs

Study of Using Energy Storage to Mitigate the Impact of High Renewable Energy Penetration to the Grid

Agenda Short and medium term impact of the German moratorium Longer term challanges: maintaining supply security during decarbonization

Statistical Data on Electricity in Italy Summary note DEMAND FOR ELECTRICITY UP IN 2015: +2.0%

THERMAL ENERGY STORAGE AS AN ENABLING TECHNOLOGY FOR RENEWABLE ENERGY

Envisioning a Renewable Electricity Future for the United States

Energy Management and Planning in Greek Non Interconnected Islands

I contributi tecnologici per la trasmissione delle energie rinnovabili. Luigi Ferraris CEO

Flexible power generation and interconnection capacity needs of the Italian power system using PLEXOS LT plan.

Below is a brief description of the main regulatory measures that affected the Company in 2010.

INTEGRATION OF RENEWABLE BASED GENERATION INTO SRI LANKAN GRID

The role of the NRA in the Energiewende

Low Carbon Grid Study: Analysis of a 50% Emission Reduction in California

Network Code on Electricity Balancing DSO Associations views on the final version of 23 December 2013

The role of emerging end-use and microgeneration technologies in smart grids some findings from Task XVII

Pathways to Integrate 175 Gigawatts of Renewable Energy into India s Electric Grid

Energy Storage in a Grid with Fluctuating Sources : the German Perspective

Oahu Wind Integration Study

CURRENT STATUS AND PERSPECTIVES OF RES DEVELOPMENT IN THE REPUBLIC OF MOLDOVA.

Energy Storage Integration in Alberta s Energy Only Market. Kevin Dawson Director, Market Design Alberta Electric System Operator

DS3: System Services Review TSO Recommendations

Renewable Energy Development in Sri Lanka Opportunities and Challenges. Ministry of Power and Energy Sri Lanka 01/12/2014 1

California Electricity Sector GHG Planning: Making early investments in CCS to lower the long-term cost of achieving a GHG reduction target

USEA/USAID. Planning Initiative. May 5, Patrick D. Miller

Pathways to Integrate 175 Gigawatts of Renewable Energy into India s Electric Grid

ECONOMIC TRENDS OF ITALIAN ELECTRICITY SECTOR SHORT TERMS STATISTICS

Pumped Storage Hydroelectric Power Plants: Issues and Applications

ITALY provisional data

Transmission Infrastructure Investment Requirements in the Future European Low-Carbon Electricity System

FOSSIL FUEL POWER PLANTS: SOLUTIONS TO IMPROVE FLEXIBILITY

Supporting and integrating RE-Electricity in Italy The GSE experience IEA DSM Task XVII Seoul, Korea, September 2008

Electricity Grid Evolution in EU pre-access Countries: the Turkish case. Gaia Moretti

Kor OZAY. Ankara, 27 th March 2013

Università degli studi di Napoli Federico II

POWER-SYSTEM-WIDE ANALYSIS OF THE BENEFITS OF RESERVE PROVISION FROM SOLAR PHOTOVOLTAICS IN SOUTH AFRICA

The Role of AMI and DR in Enabling Island Renewable Integration

INTEGRATION OF DEMAND SIDE MANAGEMENT WITH VARIABLE OUTPUT DG

RES forecasting from a TSO perspective

Clean Energy Development in Sri Lanka

Energy in Kenya. Energy Scenarios Workshop July 24, 2013 Stanley Hotel

Competitive energy landscape in Europe

Increasing renewables share in Turkey s power system

Current status and perspectives of RES in Lithuania

Integration of Renewable Energy Sources in the Electricity System - Grid Issues -

Overview of EPA s Platform v6 using IPM and Scenario Suite

Update on EPRI s Energy and Economy Modeling

The Role of Energy Storage with Renewable Electricity Generation

Making Renewable Energy Integration Compatible with the Security of the System

Integrating Renewable Energy into the Electrical Grid, a TSO Perspective

Consulting Services for Development of the Renewable Energy Sector Training on Sustainable Development

Energy Market. Insights. Solar Thermal Generation: The Answer To Australia s Renewable Energy Needs? by Adrian Kemp

Market design for large shares of renewables: time and space

NYISO s Integrating Public Policy Project

Pathways to Integrate 175 Gigawatts of Renewable Energy into India s Electric Grid

Community Choice and Renewable Energy

Dynamic reserve requirement in real time operation

The Development of Distributed Generation

Anjan Kumar Sinha NTPC Ltd

PANAMA POWER SYSTEM FLEXIBILITY ASSESSMENT IRENA FLEXTOOL CASE STUDY

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

EU 2020 Targets: Managing integration of wind in the Hungarian grid. Tari Gábor CEO. Wind Energy the Facts Tari G. 12 June 2009 Workshop,

Overview of the financing framework for the German Energiewende

NW Hydro and California

Renewable Electricity Futures

Efficient RES-E Support in Europe and its Impact on the Conventional Power Market

ENERGY STORAGE INSTALLATION POTENTIAL - THE CASE OF FRANCE

DATA ASSUMPTIONS AND DESCRIPTION OF STUDIES TO BE PERFORMED 2014 EGSL & ELL Integrated Resource Plans

Hydro Pumped Storage Power Plants perspectives in SEERC Region

Solar Integration into the PJM Grid

RELIABILITY AND SECURITY ISSUES OF MODERN ELECTRIC POWER SYSTEMS WITH HIGH PENETRATION OF RENEWABLE ENERGY SOURCES

Renewable Electricity Futures

California Grid Operations: Current Conditions and Future Needs

La regulación del incierto futuro de los sistemas eléctricos

2016 Fall Reliability Conference MRO

Ashish Gulagi, Manish Ram and Christian Breyer Lappeenranta University of Technology, Finland

Beyond LCOE: The Value of CSP with Thermal Energy Storage

The German Electricity System

Renewable Integration Impact Assessment Finding integration inflection points of increasing renewable energy. NCEP Webinar Sept.

Flexibility in the Swiss Electricity Markets. Jan Abrell Energieforschungsgespräche Disentis 2019,

High Renewable Electricity Scenarios

PV in Italy: the results of ten years of experience Beyond FiT scheme

Pathways to Integrate 175 Gigawatts of Renewable Energy into India s Electric Grid

Wind Research for North Sea wind Energy. Secure sustainable electricity supply

The role of smart grids in integrating variable Renewable Energy sources

Efficienza energetica, smart grid e fonti rinnovabili: la strada maestra per un Europa elettrica

Transcription:

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

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

The ITALIAN ENERGY SCENARIO AND RES PENETRATION

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 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 4

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 5,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 5

RENEWABLES HIGH PENETRATION: The challenge for the Italian power system RES connected rated power [GW] 19.7 24.5 16.4 12.8 PhV Wind 9.3 6.0 3.5 1.6 1.9 1.6 1.9 2.8 2.7 4.0 0.4 3.5 1.1 4.9 5.8 7.0 8.1 2005 2006 2007 2008 2009 2010 2011 2012 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

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

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

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

THE LEGISLATIVE AND REGULATORY FRAMEWORK

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

THE GENERAL REGULATORY FRAMEWORK FOR NETWORK INVESTMENTS 12

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

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

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

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

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

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