Integrating Renewable Energy to the Grid

Optimising and securing the network

Facilitating cost effective integration of

renewable energy in GB grid

Goran Strbac
Imperial College London
 UK Response to Climate Change
Challenge
2008/09 TRANSMISSION SYSTEM

- 2020: 25-30% of all electricity

AS AT 31st DECEMBER 2007

400kV Substations
275kV Substations
132kV Substations
400kV Circuits
275kV Circuits
132kV Circuits

demand to be met by renewable

Major Generating Sites Including Pumped Storage
Pentland Firth
Connected at 400kV
THE SHETLAND ISLANDS
6 Connected at 275kV
Hydro Generation

generation
- 2030+: 5

- Largely decarbonised electricity

8
9
2
10
4

generation, while……
3

Tongland
3
2

2 14

- Electrifying segments of
3
1
4
2
3
17

9 4
16
15

transport and heat sectors

5
7 6
14 11

13 13
12
12 10

11

…in order to reduce CO2

9

10
7 8
6

9
5

emissions by 80% by 2050 6

7
2
2
 UK Low carbon system: degradation in asset
utilization and role of flexible balancing technologies

2020: Wind generation will  
 

displace energy produced by
conventional plant but its ability
displace capacity will be limited 
)),

2030+: Electrification of
segments of transport and heat 
(),

sectors: increase in peak
demand disproportionally higher 
-'),

than increase in energy

3
 Balancing and Need for Flexibility
Number of hours with zero or
negative prices


 

 




'%%
.&)%%

Unprecedented price
volatility
. value of energy
frequently lower than value of
flexibility

leading to increased base-load & peak generation investment risks...

...while providing significant opportunities for flexible generation,
demand side response, storage, interconnection 

 UK Low carbon system: degradation in asset
utilization and need for whole system approach

Asset
Utilisation
g
Flexible Balancing 






 

55% Technologies 

  
 






 



 


 

35%
 

BaU

25% Volume of the market

for flexible balancing
technologies >£60b

System integration costs of low

2010 2020 2030+ carbon European system >€500b
5 5
 Valuing Flexible Balancing Technologies
Whole Systems Approach


 
 


!








!
 
 
  















 

 





 
















 

   
!


Whole-system modelling
critical for capturing Time and 









 

 
Location interactions  






 



 


 

Capturing the impact of  
various flexibility options
simultaneously 6
 From the Grid to Consumers
Integrating distributed energy resources:
From Consumers to the Grid

Generation Transmission Distribution Demand

Flexible Prosumers

Energy Flexibility

Is this compatible with conventional utility business model?

 Demand response in action: demand to follow
wind

Smart Dishwasher Washing Machine & Refrigerator Air Conditioner Water Heater
Tumble Drier

 









$!

("&%
.&%%

 '


!
! 
-)%
&%%"')%

8
Impact on consumer bills

Consumers, by making
choices would finally drive
development of electricity
industry - ?
• Growing value of flexibility
in future => energy bills of
flexible consumers may be
only 30% of these for
inflexible consumers!
9
 Flexibility of generation, not only capacity
and energy provision, will be critical
Low nuclear High nuclear

Enhanced flexibility
& efficiency
Enhanced flexibility
Low nuclear High nuclear



Impact of flexibility on plant portfolio
energy production

Low nuclear High nuclear

Will future market design

adequately reward flexibility? 

Significant increase in frequency regulation
requirements driven by reduced Inertia

12
 Can smart refrigerators
displace a power station?

?
+
=
...but the beer is getting warm!
Load per fridge (p.f) Demand 60Gw 100% Refigerators, step 1.320GW ramp 0
55
DDC 600

Cost savings per fridge (£/appl)

No DDC
50 500
RES2050
45 400 NUC2050
Load p.f. (W)

RES2030
40 300 NUC2030
RES2050W
35 200
NUC2050W
30 100 RES2030W
NUC2030W
25
0 20 40 60 80 100 120 140 160 180 0
Time (min)
CUR2011
25% 50% 75% 100%
fridges are supporting the system DD penetration
13
Renewables scenario 2030:
Annual savings facilitated by storage
Cost of storage £/kw
5000 2500 2000 1500 1250 1000

Capital cost of storage cost (£/kW) 14

 Cumulative investment in distribution network
reinforcement across pathways (2020-2050)

Counterfactuals Low-cost balancing options

15
 GB transmission : unprecedented
scale of future investment
•  Unprecedented scale of expected
investment in on- and offshore
transmission and interconnection
•  Significant uncertainty in level, location
and timing of new generation
Current value Additional
(£bn) Investment (£bn)
Onshore 8.4 6.2 – 12.4
Offshore 2.5 8 - 20
Interconnection 2 8 - 20
Absence of coordinated, whole-systems
approach may be very costly 

Member State-centric or
EU wide approach?

1. Energy
sufficiency?
2. RES
deployment?
3. Adequacy?
4. Balancing?




17
 EU-wide capacity mechanism can
save 100-160 GW of peaking plant!
206
NO-N SE-N

FI

Additional peaking capacity (GW)

NO-S

EE
UK-N
SE-S

LV
DK-W
IR
DK-E
LT
92
UK-S PL-N
NL DE-NW

BE
DE-NE
PL-S
48
DE-W
LU
FR-NW CZ-W CZ-E
DE-S
FR-NE
SK

CH
AT-E 103 0
AT-W

SI
HU 11 17
FR-SE IT-N RO
ES-N FR-SW
BiH +
HR
PT ES-CE ES-NE
65
YU BG

IT-S
AL
ES-SE
ES-S

GR

Can you really trust ……..

Baseline Integrated Int Low TX Int Self-secure Int EU reserve Int DSR

when it comes to security

of supply? 18 

Benefits of whole systems approach at the
EU level Relative to the cost in national energy neutral baseline
In €bn/year (rounded) By 2030
Integrated 12.5 to 40.0
Reduction for self- -3.0 to -7.5
security
Extra for shared 0.5 to 2
balancing
Extra for Demand Side 3.0 – 5.0
Response
Extra for Coordinated 15.6 - 30
RES investment
Can we afford member state-centric
approach to electricity supply?
19
 Complexity of storage and demand
response: Split benefits

Balancing Network
services services

Can the market facilitate this?

How about DSR & industry business model?
 Observations
•  The scale of the renewable integration
challenge is very considerable
•  All technologies potentially significant
role to play
•  Whole systems approach likely to deliver
significant savings – can we afford silo
mentality?
•  Innovation – turning the problem into
opportunity? Hedging our bets?
Integrating Renewable Energy to the Grid
Optimising and securing the network

Facilitating cost effective integration of

renewable energy in GB grid

Goran Strbac
Imperial College London