1 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Effects of volatile RES on Power Systems Alessandro Clerici Chairman WEC Study Group “Energy Resources and Technologies” ABB Italy

2 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012  With the aim of reducing CO 2 emissions and dependency from fossil fuels, in various countries the sharp increase of electrical RES (Renewable Energy Sources) as a result of substantial subsidies, is creating problems to an efficient and reliable operation of the electrical power system.  Both transmission and distribution systems have to face an increasingly variable production of intermittent renewable energy sources with special reference to wind and photovoltaic; the problem is not however limited to T&D but involves also the thermal fleet of a country which is required of a “flexible operation” (start-up time, ramps of power increase / decrease, reduced hours of operation) by far beyond technical and economic limits of the great majority of the present plants in service. And bottlenecks in transmission and distribution aggravate the problems.

3 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012

4 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012

5 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 In the last decade the Italian generation mix dramatically changed

6 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 The change was driven by a “dash for gas” which built an efficient thermal generation fleet with no peers in Europe

7 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 But the change was also driven by Italian RES incentives, greater than rest of Europe, which spurred a “dash for RES”

8 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 …as a results of over-remuneration the installed PV capacity is facing a boom

9 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 …but…grid bottlenecks are still under resolution

10 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 …causing power market fragmentation

11 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 A widening reserve margin, based on RES growth

12 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Post-crisis demand’s decrease together with rapid RES growth have squeezed thermo generation, especially the new CCGTs

13 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 As a consequence, creating a “distorted” new price curve which disrupts old “conventions”

14 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Greater RES penetration, together with low demand and with expensive and relatively unflexible CCGT induce greater price volatility in the market

15 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 RES penetration can affect the power system behavior

16 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Wind has a lower predictable generation pattern than sun

17 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Need for additional reserve to cope with the intermittency of non- programmable RES generation

18 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Excess of non-programmable RES generation in periods with low demand can lead to over-generation

19 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Coping with sharp variations of RES generation

20 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Over-generation and quick “ramp-ups” create a new need: Energy Storage facilities

21 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Sun and wind are location dependent and often remote locations from the demand centers

22 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 A sudden risk of black-out due to RES disconnection when frequency is outside the grid code limits

23 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Options for Increasing Power System Flexibility to Accommodate Renewables

24 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012