Effective integration of Distributed Solar PV Project summary - PowerPoint PPT Presentation

Effective integration of Distributed Solar PV Project summary November 2019

The team 2

The environment 3 86 % drop in the last 10 years  Reduction of solar PV 2 $/Wp German spot market prices for polycrystalline investment modules from Europe 1 Competitive LCOE 0 May 2009 Sept 2009 Jan 2010 May 2010 Sept 2010 Jan 2011 May 2011 Sep 2011 Jan 2012 May 2012 Sep 2012 Jan 2013 May 2013 Sep 2013 Jan 2014 May 2014 Sep 2014 Jan 2015 May 2015 Sep 2015 Jan 2016 May 2016 Sep 2016 January 2017 May 2017 September 2017 January 2018 May 2018 September 2018 January 2019 compared with other technologies  Improvement in monitoring solutions Nowadays, distributed  Enhancement of the generation and integrated local technology energy systems are an characteristics affordable solution 3

The environment  Investment: € 600-1,000/kW Cost of the electricity supply in the consumption location based  Production in on distributed solar PV Madrid area: € 600/kW 1,700 kWh/kW = c € 1.4/kWh  Useful life: 20- 1,700 x 25 30 years  Maintenance cost: no relevant 4

The scope: distributed solar PV  Integration approach: demand + solar PV + batteries Test in different EU  Optimal sizing of solar PV equipment environments: and storage devices according to consumption patterns and radiation  Greece profile: affordable business models  Poland  Impact on wholesale market price  Lithuania  Impact of the solution on the electricity system reliability: static and dynamic  Germany assessment  Spain  Recommendations: business, regulation and technical 5

The method for sizing the solution The solution is sized according to the consumption profile, the irradiation pattern (electricity production) and the energy storage devices characteristics, taking into consideration different regulatory frameworks: net metering, feed in tariff, the retail and wholesale electricity prices, etc. Electricity Electricity (import) (export) Electricity Electricity system (DSO) system (DSO) Distributed solar PV: Electricity Electricity wholesale retail market Prosumer € € market (pool) (retailer) 6

The case studies More than 80 case studies  Economic affordable solution, IRR higher than 7% (in some EU locations higher than 10%)  Relevant self-sufficiency. Depending on the consumption profile, up to 60%  The effectiveness of the solution is based on self- consumption rather export energy to the market  Currently, the storage reduces the return of the investment Example: Residential prosumer in Germany 7

The impact of the distributed solar PV on the wholesale market Germany 2016 Day_Ahead_Auction Model_Price NoPV_Model_Price Mean Price 28.98 28.98 33.96 Peak Price 31.93 31.83 41.14 None Peak Price 26.03 26.14 26.78 2017 Day_Ahead_Auction Model_Price NoPV_Model_Price Mean Price 34.20 34.19 40.47 Peak Price 37.99 37.90 49.67 None Peak Price 30.41 30.48 31.28 Supply and demand Simulating the Spanish pool with 1 200.00 Demand Supply 180.00 TWh of distributed solar PV, the price Self-consumption 160.00 had dropped: 140.00 Supply ’ Demand ’ 120.00 Price (€/MWh) 100.00  € 0.44/MWh in 2015 Price 80.00 60.00  € 0.37/MWh in 2016 Energy surplus 40.00 due to distributed 20.00 generation  € 0.35/MWh in 2017 0.00 0.00 1150.00 2300.00 3450.00 4600.00 5750.00 6900.00 8050.00 9200.00 10350.00 11500.00 12650.00 13800.00 14950.00 16100.00 17250.00 18400.00 19550.00 20700.00 21850.00 23000.00 24150.00 25300.00 26450.00 27600.00 28750.00 29900.00 31050.00 32200.00 33350.00 34500.00 35650.00 36800.00 37950.00 39100.00 40250.00 41400.00 42550.00 43700.00 44850.00 46000.00 47150.00 48300.00 49450.00 50600.00 51750.00 52900.00 54050.00 55200.00 56350.00 57500.00 58650.00 59800.00 8 Energy (MWh)

The impact of the distributed solar PV on reliability of the system  Voltage control: reduction of this Static and variable volatility with reference to dynamic the voltage reference assessment, simulating  Reduction of losses in the the impact of transmission and distribution grid different  Reduction of the load of circuits levels of distributed  Reduction of risk exposure with PV reference to incidents in the penetration system (contingencies) on the  Solar PV increases the impact of electricity frequency drops. Batteries mitigate flows this impact. 9

Recommendations In progress  The solar PV panels can cover most of the demand at sunlight hours while the rest of the time the electricity is purchased from the grid: self-consumption Relevant economic savings in the variable and fixed prices.  Clustering prosumers is an effective approach: optimization in the investment process and in the self-consumption (reduction of electricity excesses).  Net metering approach could promote the installation of distributed solar PV, but it is not an optimal method.  The effective integration of prosumers to provide energy/services to the market/system operators require to establish intermediaries (aggregator): optimizing. 10

Recommendations In progress  It is necessary to establish a regulatory framework for the aggregators activities (integration with the market and system operators).  In order to incentivise the distributors to collaborate in the large penetration of distributed generation, economic incentives has to be established based on the positive impact of this solution.  It is pending to decide the information flow of the distributed solar PV with the DSO and TSO, and the monitoring process.  The usage of batteries to enable the penetration of distributed solar PV requires the reduction of its costs to around € 120/kWh Batteries is an accurate solution to provide frequency control services.  The effective management of the electricity system requires to establish connection grid criteria for large distributed solar PV 11 penetration.