RES GRID INTEGRATION

Regulated Expansion of Electricity Transmission Networks: the Effects of Fluctuating Demand and RES Generation

 Partecipanti

Mappa

 Word cloud

Esplora la "nuvola delle parole (Word Cloud) per avere un'idea di massima del progetto.

 Obiettivo del progetto (Objective)

'Various electricity systems around the world are currently facing a major challenge on the way to sustainable energy systems: the integration of large amounts of renewable energy sources (RES) into the electricity network. In particular, the European Union (EU) is currently undergoing a transformation of its energy system towards a sustainable and highly renewable-based system. Together with an improvement of energy efficiency, a promising strategy for decarbonizing the electricity sector is the large-scale expansion of RES electricity systems (such as wind, solar, hydro, geothermal, biomass). A range of different regulatory mechanisms have been proposed and applied so far in order to reach this goal. The proposed project is thus aimed to enhance the understanding on how to optimally regulate and expand transmission networks in the light of large-scale RES integration. The researcher will analyze how the unique variability and unpredictability characteristics of RES have an effect on transmission expansion decisions within an analytical framework, and will also derive policy implications to help decision makers identify appropriate policies. More specifically, this project will propose a combined merchant-regulatory incentive mechanism and compare it with traditional cost-plus regulation, a pure merchant approach and a welfare optimizing benchmark so as to promote the expansion of transmission grids under optimal dispatch of intermittent renewable energy sources (characterized by variable demand and supply dynamic functions). Moreover, these different approaches will be quantitatively simulated for different international systems, such as the European large-scale RES scenario of the Mediterranean Solar Ring (“Transgreen” or “Desertec”), the North-Sea Supergrid, as well as various regions in the American continent.'

Introduzione (Teaser)

Renewable energy resources (RES) such as wind, solar, hydro, geothermal and biomass can significantly offset the world's demand for fossil fuel-derived electricity. A new EU study points the way to expansion of current networks to efficiently integrate RES.

Descrizione progetto (Article)

Increasing the contribution of RES-derived electricity would provide greater energy security by removing geographical and political barriers to fossil fuels. It would also significantly enhance sustainability and reduce environmental impact. However, integrating RES electricity systems into the existing electricity grid poses a formidable challenge.

Scientists evaluated a promising integration model with work on the EU-funded project RES GRID INTEGRATION. The team conducted comprehensive studies and analyses regarding regulation and expansion of transmission networks in the context of large-scale RES-system integration.

RES-specific issues require special consideration and impact on decisions to invest. For example, dispatch in RES systems is more frequent and fluctuating than in conventional electricity systems. In addition, substituting conventional energy with RES has an effect on the rents from congestion in the network.

Scientists evaluated the recently developed Hogan-Rosellon-Vogelsang (HRV) incentive mechanism for transmission expansion which has been gaining support. It combines merchant and regulatory structure via price caps and exploits point-to-point transactions or financial transmission rights (FTRs). An FTR is a market incentive, essentially the right to collect the price difference arising from not using physical transmission rights or property in order for the entire distribution network to run more efficiently.

RES GRID INTEGRATION combined theoretical studies of regulation considerations with evaluation of practical applications to different energy systems. Researchers evaluated whether or not the variability and unpredictability associated with RES affected transmission expansion decisions within the HRV framework or any other regulatory system. They then derived policy recommendations to facilitate efficient and effective integration of RES for the benefit of all concerned.

As the world turns toward RES as an important route to energy security and sustainability, complicated technical and financial challenges arise from the unique characteristics of related electricity production technologies. The RES GRID INTEGRATION project has provided an important foundation for policy makers for the most expedient ways to expand transmission networks of the future.