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Recommendation of policy and regulatory options - for facilitating large shares of intermittent RES into the power supply system

F.M. Andersen , P.E. Grohnheit , P. Mancarella , P. Pudjianto , G. Strbac , L. Olmos , T. Gómez , E. Lobato

Integration of a large share of intermittent RES&DG power generation, in particular wind, creates a number of problems for the electricity system in a country. These are mainly related to the unpredictability and variability of the power production. Reducing the impacts causes extra system costs for the system, if tackled in a traditional power system setting. But, if a number of technical rules and regulations are changed, market-based efficient integration of variable renewable energy technologies for electricity generation is possible. This report (D7) is analysing all measures and response options for changes in regulation and institutional setting per country. Furthermore, it formulates recommendations for improving the policy and regulatory framework in order to implement the response options, barriers for implementing them and the in five countries, required changes in regulatory, institutional and policy framework as identified in the earlier reports (D5 & D6). Distributed and renewable generation With larger penetration of intermittent type generation, in particular wind, also the impacts and, thus, the design of support schemes for promoting RES&DG becomes more important. Some of the DG/RES technologies – in particular CHP for larger heat distribution networks – are able to contribute significantly to handle intermittency, e.g. by adding heat storages, heat pumps, or electric boilers for down-regulation. Replacing feed-in tariffs with premiums on market prices is an important measure to expose DG/RES technologies to market prices which reflect the system wide supply and demand for electricity. Consequently, DG/RES will adjust their production schedules and produce only when it has added value for the electricity system and society as a whole. Commercial aggregators with a portfolio of small generating units will play a more and more important role on the market, e.g. in the form of ‘virtual power plants’. Also, the design of markets is important. Market splitting – following the principles from the Nordic electricity exchange, Nord Pool – into geographical areas with transmission constraints to neighbouring areas and large penetration of intermittent generation will create market prices that will encourage generators to contribute to system stability. Finally, technical requirements set up in the national grid codes such as fault-ride through capability should also be applied to small generators. […]


IIT Project: RESPOND (RESPOND)

Funding entity: Comisión Europea. Intelligent Energy-Europe (IEE)

01/07/2009

IIT-09-093I

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