Managing Temporary Oversupply from Renewables Efficiently: Electricity Storage Versus Energy Sector Coupling in Germany

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Technische Universität München Managing Temporary Oversupply from Renewables Efficiently: Electricity Storage Versus Energy Sector Coupling in Germany Katrin Schaber* (Technische Universität München) Florian Steinke (Siemens Corporate Technology, Munich) Thomas Hamacher (Technische Universität München) International Energy Workshop, Paris, 20 June 2013 Lehrstuhl für Energiewirtschaft und Anwendungstechnik Prof. Dr.-Ing. U. Wagner, Prof. Dr. rer. nat. Th. Hamacher *k.schaber@tum.de

Structure of this presentation 1. Introduction 2. Scenario definition and modeling approach 3. Results 4. Conclusion 2

Introduction (1): high shares variable renewable energies (VREs) lead to large temporary excess electricity Share of wind Electricity Storage (pumped hydro, CAES, batteries, but mainly hydrogen) Energy sector coupling (supply/replace other energy demand like heat, natural gas, hydrogen) 3

Introduction (2): Non-trivial interaction of different options to manage temporary oversupply Joint analysis of all options in a detailed energy system model 4

Scenario definition: Germany, 2020 and 2050 Reference technology Storage size Gas reformation unlimited Gas price 25 /MWh 2020 2050 Solar PV 60 GW 129 GW Wind Onshore 42 GW 75 GW Wind Offshore 16 GW 43 GW Reference technology Storage size Gas heating 1h Sensitivity analyses: conversion paths, gas price, electrolysis costs 5

Method (1): URBS model generator for detailed energy system model of German power, heat and H2 system Input parameter Techno-economic parameters (costs, fuel prices, efficiencies load and renewable supply profiles (per model region and timestep) existing infrastructure (per model region) Limits to intrastructure extension (potential, political circumstances) Energy system model generator URBS Linear Optimization (GAMS, CPLEX Solver) properties of generation processes Minimization of total costs under boundary condidtions: supply demand properties of storage processes properties of transport processes Results Power plant dispatch and additions Grid capacity usage and extension Storage dispatch and extension Energy price and total costs Emissions per region and source 6

Method (2): distributed generation implemented URBS model and regional resolution Distributed generation follows local demand (relevant for space heating technologies, after Richter (2004)) Detailed modeling of CHP technology Input commodity Secondary commodity Secondary commodity Output commodities chp plb f prod =0.4 hp pp lg=1 generic Gas Generic f prod =0.6 Local heat Heat Electricity Regional resolution according to dena II (2010), regions reflect well connected areas in electricity grid. 7

Results: System wide effects of coupling (1) Base scenario 2020

Results: System wide effects of coupling (2) Base scenario 2050

Results: System wide effects of coupling (3) Excess electricity and coupling 2020 2050 Excess electricity and coupling (TWh) Excess electricity and coupling (TWh) Heat sector acts as sink for excess electricity Hydrogen sector plays a minor role only Role of transmission grid extension changes

Results: Role of hydrogen sector is crowded out by large sink for excess electricity provided by the heat sector 2020 2050 Excess electricity and coupling (TWh) 300 250 200 150 100 Excess electricity and coupling (TWh) 300 250 200 150 100 50 50 - - -50 No Grid, Coupling Grid, Coupling (Base) Grid, No Heat Coupling 75 gas price -50 No Grid, Coupling Grid, Coupling (Base) Grid, No Heat Coupling Elec. Overproduction H2 to Elec. Elec Overproduction H2 to Gas H2 Elec. to to H2 Elec. H2 to to GasHeat 75 gas price 75 gas price, No Grid, No Heat Coupling Relative costs of technologies leads to dominant role of heat sector Methanation is only part of cost-optimal mix with high gas price and no other option

Results: Cost-optimal heating technologies are complementary to VRE sources Regional mix of heat supply (2050: Grid, Coupling) Share of heat supply from electricity Share of heat supply from CHP High variability of wind energy in the north fits well with electric heater Solar PV and CHP electricity generation are anticorrelated on a seasonal timescale

Results: Sector coupling gives value to excess electricity Histogram of electricity prices (marginal costs) 2050, No Grid, No Coupling 2050, Grid, Coupling cost of replaced fuel Electricity prices become lower bounded by cost of the replaced fuel, natural gas (plus emission allowances) 13

Conclusion Findings: power-to-heat coupling displaces long term electricity storage and the power-to-gas option. Heat sector acts as cost-efficient sink for excess electricity. Regional heating technologies are complementary to VRE technologies. Role of transmission grid changes. Zero price events are reduced thanks to energy sector coupling. Future Work 100% renewables scenario for all sectors Include transport sector More detailed modeling of heat and hydrogen sector 14