SOLARPOWER EUROP WEBINAR

Fact vs Myth: solar power and grid stability

October 2017 © Copyright First Solar, Inc.

Sonia Dunlop
26 October 2017

1
FACT VS MYTH:
PV SOLAR AND
GRID STABILITY
Mahesh Morjaria. Ph. D.
VP, PV Systems

Enabling a world powered

by reliable, affordable
solar electricity.
KEY MESSAGES

• Cost of Utility-scale PV Solar energy has rapidly dropped

and is already lower than new conventional generation
cost in many places
— Factor of 2-3 cheaper than rooftop PV solar energy

• Utility-scale PV Plant with Grid Services Capability can be

dispatched when it is operating like conventional generation
— Incorporates Grid Friendly Features critical for grid stability
& reliability

October 2017 © Copyright First Solar, Inc.

• Rapidly dropping storage costs, PV + Storage (PVS) plants are
becoming more cost-effective than conventional generation
— Low cost clean energy plant that is fully dispatched

3
Brief Introduction to First Solar
FIRST SOLAR AT A GLANCE

Over 17GW sold worldwide and

over $14.5B in project financing facilitated

Partner of choice for leading utilities

and global power buyers since 1999

Solar energy that is economically

competitive with fossil fuel

October 2017 © Copyright First Solar, Inc.

Strongest financial stability &
bankability in the industry

5
FIRST SOLAR AT A GLANCE

History of solar innovation with world

record efficiency

High-efficiency technology with a proven

energy advantage

Lowest environmental impacts

generating clean electricity with
NO carbon emissions or air pollutants

October 2017 © Copyright First Solar, Inc.

6
RESEARCH CELL EFFICIENCY: FASTEST INNOVATION RATE IN THE INDUSTRY

30%

SINGLE CRYSTAL SILICON (Non-Concentrator) FEB 2016

25%
22.1%
MULTICRYSTALLINE SILICON
20%
First Solar CdTe RESEARCH Efficiency
15%

2016
16.9%

October 2017 © Copyright First Solar, Inc.

10%
First Solar CdTe PRODUCTION Efficiency

5%
'95 '96 '97 '98 '99 '00 '01 '02 '04 '04 '05 '06 '07 '09 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18
7
ENERGY DENSITY ADVANTAGE | 2016 5%+ Advantage
• First Solar’s energy density advantage, relative to multi-crystalline silicon globally

October 2017 © Copyright First Solar, Inc.

Represents lead line efficiency for both First Solar and multi-crystalline silicon. Multi-crystalline silicon based on 2016 forecast from ITRPV roadmap dated July 2015.
8
Introducing Larger Format Series 6 Module … reduces BOS Cost

Physical Dimensions for Equal Efficiency

Large Format
MORE WATTS PER INSTALL
OPERATION

c-Si S6
2m

2m

350 W 430 W
Framed
SIMPLIFIED MOUNTING TO
COMMON INDUSTRY STRUCTURES

October 2017 © Copyright First Solar, Inc.

1m 1.2m

9
Evolution of Utility-Scale Solar
Technology Strategy | Increase Value of Solar

Solar 1.0: Traditional Solar 2.0: Controllable Solar 3.0: Fully Dispatchable
• Solar is part of • Controlling solar makes it • Storage time-shifts solar to
day-time load offsetting more flexible & increases its make it fully dispatchable
peak or near-peak loads value

Load Load
Load
Net Load = Reduced Ramp
(Load – Solar) Net Rate by Net Storage
Load Targeted Load
Solar
Solar Curtailment

Flexible & Dispatchable Solar … Key to Value Retention

11
Solar Supports Grid Reliability & Stability

Perception

Solar causes Utility scale solar provides

reliability concerns essential reliability
services like conventional
plants – even outperforms
on frequency regulation

October 2017 © Copyright First Solar, Inc.

Reality
12
Solar PV Impact on Power Grid — Key Topics

Grid Stability & Reliability Two Key ConditionsPower

Voltage/Frequency
Milliseconds to Minutes
Load Balancing for Grid Stability
Systems Planning & Design
• Voltage is maintained within Normal Range
• Frequency is maintained within Normal Range
i.e., Generated Power = Loads ( + Grid Losses)
at every instant
Hours to Days Years

Typical PV Plant Output

Irradiance

October 2017 © Copyright First Solar, Inc.

Irradiance

Power Power
13
Utility-Scale PV Plants Support Grid Stability & Reliability
Utility-Scale PV Plants Provide Grid Friendly Features
Required by NERC:

 Voltage regulation
 Real power control,
ramping, and curtailment
 Primary frequency regulation
 Frequency droop response
 Short circuit duty control
 Fault ride through

Utility-Scale PV Plants Contribute to Grid Stability & Reliability Like Conventional Generation
Source: NERC: 2012 Special Assessment Interconnection Requirements for Variable Generation 14
PV Plant Schematic
Sunlight to DC Power DC Power to AC Power AC Power to Grid

DC
AC

POWER CONVERSION SWITCHGEAR

STATION
SUBSTATION POWER GRID
SOLAR ARRAYS COMBINER
BOX
•
69 to 765kV
• (AC)
•

DC

October 2017 © Copyright First Solar, Inc.

Typical DC Voltage 1kV or Typical AC Collection Voltage
1.5kV 34.5kV
(Alternatives 4.16kV to 27.6kV)
15
 Plant Control System Enables Grid Friendly Features
Sunlight to DC Power DC Power to AC Power AC Power to Grid

DC 69 to 765kV
AC (AC)

POWER CONVERSION SWITCHGEAR

STATION
SUBSTATION POWER GRID
SOLAR ARRAYS COMBINER
BOX
•
•
•

DC • Checks grid’s actual

conditions and required set
points
• Sends individual instructions
to each inverter based on

October 2017 © Copyright First Solar, Inc.

location, losses, and
performance
Typical DC Voltage 1kV or 1.5kV Typical AC Collection Voltage 34.5kV
(Alternatives 4.16kV to 27.6kV) • Controls quality of power
coming out of the PV plant
Closed-loop controls at
100 milliseconds!
Patent No. 8,774,974. Real-time photovoltaic power plant control system 16
Passage of Clouds at a 290 MW PV Plant

~20 minutes

October 2017 © Copyright First Solar, Inc.

Large Plant Size Attenuates Impact of Cloud Passages on Power Output 17
AGUA CALIENTE 290MW AC | CONNECTING ON 500 KV TRANSMISSION LINE

Palo Verde Nuclear

Generating Station
Hassayampa
Agua Caliente Substation

California

Hoodoo Wash
Arizona Substation

October 2017 © Copyright First Solar, Inc.

North Gila 500kV Palo Verde-Hassayampa
Substation Transmission Line

18
TYPICAL PLANT OPERATION (UNITY POWER FACTOR)
1.2 110%
Normalization Values Typical Operating Day
Active Power: 300MW
0.9 Power (PU)
Power (PU) and Reactive Power (PU)

Reactive Power: 20MVAR

Voltage (PU) and Power Factor

Voltage: 530kV
105%
0.6
Voltage (PU)

0.3 100%
Power Factor

0.0
Reactive Power (PU) 95%

October 2017 © Copyright First Solar, Inc.

-0.3

-0.6 90%
4:00 8:00 12:00 16:00 20:00
Time of Day

Plant Is Maintained At Constant Power Factor as Required 19

MARCH 21ST 2014 EVENT

Palo Verde Nuclear

Agua Caliente
Hassayampa
Substation
O
Generating Station Line Taken
Out of
Service

Hoodoo Wash
Substation

October 2017 © Copyright First Solar, Inc.

North Gila 500kV Palo Verde-Hassayampa
Substation Transmission Line

20
VOLTAGE SUPPORT FROM PV PLANT

Grid Operator
Seeks Voltage
Support
 Power (PU)
Voltage (PU) 

Voltage (PU) 

Voltage (PU) 
Night
Shutdown

 Power (PU)
Voltage Control
Started
 Reactive Power (PU)

Maintain Voltage Even Under Changing Power Conditions 21

Demonstration of Essential Reliability
Services by a 300-MW Solar PV Power Plant
Can variable energy resources provide essential reliability services
to operate the grid?
• NERC identified three essential reliability services (ERS) to integrate higher levels of
renewable resources
1. Frequency Control
2. Voltage Control
3. Ramping capability or Flexible Capacity

• Test results demonstrated utility-scale PV plant has the capability to provide these
essential reliability services

• Advancement in smart controls technology allows these plants to provide services similar
to conventional resources

• VERs (Variable Energy Resources) with the right operating characteristics are necessary
to decarbonize the grid

Page 24
 AGC Participation Tests – 300 MW Utility-Scale PV Plant
MORNING
Available MW Min allowed MW Commanded MW Measured MW
230

220
Available MW
210
Commanded MW
POWER (MW)

30MW Headroom
200 Measured MW

190

Minimum
180
Allowed MW
170
0 200 400 600 800 1000 1200 1400
RELATIVE TIME (sec)

MIDDAY
• 30MW headroom
285
Avaliable MW Min Allowed MW Commanded MW Measured (MW)
• 4-sec AGC signal provided to
280 Plant Controller

October 2017 © Copyright First Solar, Inc.

275 30MW Headroom Available MW
270
Commanded MW • Tests were conducted for
POWER (MW)

265
260 Measured MW — Sunrise
255
250 — Middle of the day
245
240
Minimum
Allowed MW
— Sunset
0 200 400 600 800 1000 1200 1400
RELATIVE TIME (sec) 25
PV Plants Outperform Conventional Resources in Frequency Regulation
100% Regulation accuracy by PV Plant is
90% about 24-30% points better than 87-93%
fast gas turbines
80%

70%
63%
60%

50%
40%
40%

30%

20%

October 2017 © Copyright First Solar, Inc.

10%

0%
Steam Pump Hydro Combined Limited Gas Solar PV Solar PV Solar PV
Turbine Turbine Cycle Energy Turbine (Middle of (Sunset) (Sunrise
Storage the Day)
Blue bars taken from the ISO’s informational submittal to FERC on the performance of
resources providing regulation services between January 1, 2015 and March 31, 2016
http://www.caiso.com/Documents/TestsShowRenewablePlantsCanBalanceLow-CarbonGrid.pdf 26
Frequency Droop Tests
Example of 3% droop
test (under-frequency)

∆𝑃/𝑃𝑟𝑎𝑡𝑒𝑑
𝐷𝑟𝑜𝑜𝑝 =
∆𝑓/60𝐻𝑧
• 3% and 5% under and over-frequency Power
tests Frequency

October 2017 © Copyright First Solar, Inc.

• 20% headroom
• ±36 mHz dead band
• Used actual frequency event time
series measured in the U.S. Western
Interconnection 27
Reality: Utility-scale PV Solar is a Flexible Resource that can enhance grid reliability

Dispatchable PV Plant
• Solar can provide NERC-identified essential reliability
services to integrate higher levels of renewable resources,
including:
— Frequency Control
— Voltage Control
— Ramping capability or flexible capacity
• Automated Generation Control regulation accuracy of 24-
30% points better than fast gas turbines
• Reduces need for services from conventional generation
— Goes beyond simple PV energy value
— Enables additional solar
— Reduces need for expensive storage
“Grid Friendly Utility-Scale PV Plants are Essential for Large-Scale PV Integration”
— CAISO
http://www.caiso.com/Documents/TestsShowRenewablePlantsCanBalanceLow-CarbonGrid.pdf 28
Solar Curtailment is to be Expected with Higher Penetration

Perception

Perception of solar
saturation/over- To get to the lowest
generation cost/best fit option,
some saturation is to
be expected

October 2017 © Copyright First Solar, Inc.

Reality
29
The Perception of Solar Saturation
TYPICAL SPRING DAY • The “duck” chart
elegantly captures
Actual 3-hour ramp Steeper oversupply misperception
of 13GW on December Ramps
18, 2016
• Two Concerns:
— Low Net Load: flexibility to
reduce must-run
2012 generation resources is
(actual)
limited
2013 ramp need
(actual) ~13GW — High Ramp Rates in
in three hours
2014 Evening: flexibility of other
2015
2016 generation to ramp up is
2018 2017 limited

October 2017 © Copyright First Solar, Inc.

2019

over generation risk 2020

Deeper
Not a Reliability Issue!
Net Load of 8.5GW on
Belly May 14, 2017

30
Looking at Duck Chart in Detail …

TYPICAL SPRING DAY LOW LOAD DAY

Production By Resource Type

May 14, 2017 Minimum Must
Run Generation
50 8.5 GW
Nuclear, Imports
Thermal & Hydro
40 Imports
Curtailment

Production (GW)
30
BTM Solar Nuclear
Load
20 Other Renewables Hydro
Thermal
10 Solar
Imports

October 2017 © Copyright First Solar, Inc.

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Grid Solar Time of Day
BTM (Behind the Meter) Solar

“Solar Overgen” is an Economics Issue Not Reliability

Source: CAISO Data. BTM Solar: Behind the Meter Solar: Estimated Based on CEC Data 31
 Comparing Generation High Load and Low Load Day

HIGH LOAD DAY LOW LOAD DAY

Production By Resource Type Production By Resource Type

August 29, 2017 May 14, 2017 Minimum Must
50
Run Generation
50 8.5 GW
Nuclear, Imports
40
BTM Solar Thermal & Hydro
Hydro 40 Imports
Curtailment
Production (GW)

Production (GW)
30 Load BTM Solar
30 Nuclear
Load
20 Thermal 20 Other Renewables Hydro
Nuclear Thermal
10 10 Solar
Imports Imports

October 2017 © Copyright First Solar, Inc.

0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Time of Day Grid Solar Time of Day
BTM (Behind the Meter) Solar

Solar Generation During High Load Days (Summer) is More Valuable

Source: CAISO Data. BTM Solar: Behind the Meter Solar: Estimated Based on CEC Data 32
 Increasing Solar While Maintaining Minimum Must Run Constraint (Hypothetical!)
HIGH LOAD DAY LOW LOAD DAY

Production By Resource Type Production By Resource Type

Summer Day Spring Day
Add 10GW New Grid Solar Add 10GW New Grid Solar
Minimum Must
50
50 Run Generation
BTM Solar 8.5 GW
Imports
Nuclear, Imports
40 BTM Solar
Hydro 40 & Thermal
Production (GW)

Production (GW)
30 Load
30

Thermal
Load
20 20 Curtailment Hydro
Thermal
10 Nuclear 10 Nuclear Solar
Imports Imports

October 2017 © Copyright First Solar, Inc.

0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Grid Solar
Time of Day Time of Day
BTM (Behind the Meter) Solar

It May Be Economical to Add Flexible & Controllable Solar

… Even If It Leads To More Curtailment During Low Load Days
33
Source: CAISO Data. BTM Solar: Behind the Meter Solar: Estimated Based on CEC Data
 Increasing BTM Solar Under Minimum Net Load Constraint (Hypothetical!)

HIGH LOAD DAY LOW LOAD DAY

Production By Resource Type Production By Resource Type

Summer Day Spring Day
Add 10GW New BTM Solar Add 10GW New BTM Solar
50 50 Minimum Must
Run Generation
Imports
10GW More BTM Solar 8.5 GW
40 BTM Solar 40 Curtailment of nearly Nuclear, Imports
Production (GW)

100% grid solar

Production (GW)
& Thermal
30 Load 30

Load
20 20 Other Renewables Hydro
Thermal
10 Nuclear 10 Nuclear Solar Thermal
Imports

October 2017 © Copyright First Solar, Inc.

Imports
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Time of Day Time of Day
Grid Solar
BTM (Behind the Meter) Solar However Adding Behind The Meter (BTM) Solar Without Controls
…. Will Lead to Curtailment of Lower Cost Grid Solar
Source: CAISO Data. BTM Solar: Behind the Meter Solar: Estimated Based on CEC Data 34
 Optimal portfolio balances solutions with
overbuild (conceptual!)

Some
curtailment
is necessary
to achieve
the least
cost/ best
fit solution

All Overbuild Mix of Overbuild and Storage All “Storage”

High Curtailment Some Curtailment Zero Curtailment

35
“Solar is the New Hydro”

Solar is the New Hydro!

✓ Renewable
✓ Clean
✓ Affordable
✓ Abundant
▪ Occasional Spill is Routine

October 2017 © Copyright First Solar, Inc.

Source: E3 – Solar is the New Hydro 38
Here Comes Solar … “ Every One Else Make Way For It?”, Not a Sustainable Approach

October 2017 © Copyright First Solar, Inc.

• Solar today is like a privileged vehicle without • As solar penetration goes up … congestion
any controls that all other vehicles have to increase, solar must be controllable and
make room for on the highway flexible to achieve sustainable growth
39
DOE Report… Need for Operational Flexibility

Markets need further study

and reform to address future
services essential to grid
reliability and resilience.
System operators are working
toward recognizing, defining,
and compensating for
resource attributes that
enhance reliability and

October 2017 © Copyright First Solar, Inc.

resilience.
— DOE Report
August 2017
40
Storage Will Increase Grid Flexibility & Opportunity for Solar Growth
Perception
Expensive storage is
essential to integrate
more solar and grid-
scale deployment is
far off
High penetration is possible
with flexible solar without
storage, though low-cost
storage will enable even
more solar
October 2017 © Copyright First Solar, Inc.
Reality
41
PV + Storage (PVS): Fully Dispatchable Clean Energy Plant

Interconnection limit

Charging

• Increase the PV array size

• Store excess energy in Energy Storage
• ESS provides flexibility to generate desired profile
• Amount of battery capacity is set by desired dispatch
profile and solar irradiance
• Shared Infrastructure costs (interconnect,
development, O&M)
Game Changer: Clean Energy Plant
MORE cost-effective than conventional generation 42
Low Storage Costs Make PVS Cost-Competitive today

Rack-level battery price history and

projections ($/kWh of storage)

October 2017 © Copyright First Solar, Inc.

Typical indoor battery rack from BYD

43
Shifting Energy to Increase Output During Target Period (~10 MWdc PV)

4
1
2 Hr
hr Storage
Without Will
Storage
Get
Will98%
Get 68%
87% Firm
Get 48%
Capacity During
Firm Capacity
Target Period
During Target
(TPCF)
Period (TPCF)

October 2017 © Copyright First Solar, Inc.

Storage (hrs) TPCF
0 48%
Game Changer: Clean Energy Plant
1 68%
2 87% Less Costly than New Conventional Generation
4 98% 44
Increasing Grid Flexibility to Meet Challenges of High Renewable Penetration

GENERATION STORAGE
Dispatchable Solar/Wind Fast Ramping

Fast & Flexible

Generation Regulation
Transmission Over
Frequency OPERATIONAL & MARKET
Dispatchable Generation
Response FLEXIBILITY
Mitigation
Quick Start • Faster electricity markets
Load Shift
• Larger balancing areas

October 2017 © Copyright First Solar, Inc.

Peak Load Reduction • Control center decision
support tools
Off-Peak Load consumption
• Probabilistic & scenario
methods
DEMAND RESPONSE • Look-ahead simulation

Sources: M. Ahlstrom, “Operations and Integrating Variable Generation”, UVIG A Short Course on the Integration and Interconnection of Variable Generation into Electric Power Systems, June 2014.
And Clyde Loutan, CAISO, “Demonstration of Essential Reliability Services by a 300-MW Photovoltaic Power Plant” 46
Evolution of Solar

Solar 1.0: Traditional
• Solar is part of
day-time load
• Offsets peak or near-peak
loads
Solar 2.0: Controllable
• Controllable solar makes it
flexible & increases its value
• Operational Flexibility &
Demand Response supports
more solar
Solar 3.0: Fully Dispatchable
• Storage time-shifts solar to
make it fully dispatchable
• Increased grid flexibility
enables higher penetration

Load Load Load

Net Load Reduced Ramp

Net Rate by Net Storage
Solar Load Targeted Load
Solar Curtailment

Flexible & Dispatchable Solar … Key to Low Carbon Future

47
KEY MESSAGES

• Cost of Utility-scale PV Solar energy has rapidly dropped

and is already lower than new conventional generation
cost in many places
— Factor of 2-3 cheaper than rooftop PV solar energy

• Utility-scale PV Plant with Grid Services Capability can be

dispatched when it is operating like conventional generation
— Incorporates Grid Friendly Features critical for grid stability
& reliability

October 2017 © Copyright First Solar, Inc.

• Rapidly dropping storage costs, PV + Storage (PVS) plants are
becoming more cost-effective than conventional generation
— Low cost clean energy plant that is fully dispatched

48
THANK YOU

Questions? Get in touch by emailing Sonia Dunlop at

s.dunlop@solarpowereurope.org

October 2017 © Copyright First Solar, Inc.

SolarPower Europe (European Photovoltaic Industry Association)
Rue d’Arlon 69-71, 1040 Brussels, Belgium
T +32 2 709 55 20 / F +32 2 725 32 50
info@solarpowereurope.org /www.solarpowereurope.org 56