RES integration into energy system

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1 RES integration into energy system Konstantin Staschus ENTSO-E, Secretary-General SET-Plan Conference, Bratislava, 2 December

2 WHO IS ENTSO-E? 2

3 THE POWER SYSTEM IS CHANGING, SO ARE WE Where we were in the past Where we are now Where we might go in the future Large & centralised generation One-way flow to consumers small, variable & decentralised generation bidirectional flows Reduced thermal generation Increasing smart technologies Mixed portfolio of distributed, gas & low carbon technologies New technology assets & services Engaged, active, prosumers Further electrification of transport Smart, data-centric system

4 RENEWABLES COSTS ARE DECREASING Renewables Conventional Source IEA, Projected Costs of Generating Electricity 2015 Edition 4

5 AND SHARE IN GENERATION IS RISING Demand varies from 530 to 574 GW Source: ENTSO-E 5

6 NEW FACTORS INDUCE NEW CHALLENGES millions Smart meters 200 millions 20 GW Demand response GW 16% of consumption Renewables 20% of consumption 6

7 AND A NEW ROLE FOR OUR NETWORKS From asset to smart optimization of generation and load September 2016 in Denmark, one week (source Energinet.dk) 7

8 WHAT WE NEED TO DO NOW? Implement the EU codes Strengthen the grid Enhance existing cooperation EU Stakeholders National COOPERATION Distribution Regulators & ACER TSOs & ENTSO-E

9 WHY STRENGTHEN THE GRID? WHAT TO DO WITH EXCESS RENEWABLES? Controllable vs. variable generation Base vs. peak load 2020 Generation = 1180 GW Wind+solar: GW 2025 Generation = 1270 GW CURTAIL STORE Thermal+biomass+hydro: GW TRANSPORT => cheapest alternative so far Peak load: GW Base load: GW 0 Source: ENTSO-E Midterm adequacy forecast

10 WHAT WE NEED TO PREPARE THE FUTURE?

11 SECURITY FLEXIBILITY TRANSMISSION: FLEXIBILITY + MARKETS + RELIABILITY 2020 Few TSOs rely on DSO information Storage: short term and reserve markets Demand response: 5% of the electricity demand 2025 All TSOs grid & market tools rely on data hubs information (perhaps based on new legislation ( distributed flexibility )) Storage and DR: Europe wide for capacity & flexibility services New tools for regional security assessment (ex: itesla, Umbrella) INNOVATION Interaction TSO security assessment & data hubs Modular planning methodology: ehighway2050 EU wide coordinated planning based on overall energy system view Interaction with other energy networks

12 DISTRIBUTION: MARKET FACILITATOR + QUALITY OF SUPPLY Datahubs manage prosumers data Flexible connection Visibility & control over distributed energy Preventing congestions Procuring system services EV charging points TECHNOLOGY ex: Grid4EU Pre-qualifying balancing & other service providers Checking & certifying delivery of services Enabling demand response by keeping network stability, both peak and off-peak Enhanced network management

13 STORAGE TSOS DSOs PROSUMERS Increasing i-res Modulation of conventional generation Short time balancing Incremental capacity/ investment deferral Increasing deployment of variable generation Improve power quality Storing surplus of selfgenerated electricity Defer self-consumption Enable demand response

14 CUSTOMER AT CENTER OF POWER SYSTEM 2020 Dynamic prices in some countries Europe wide market coupling & balancing guideline basis for demand response Data: privacy & security 2025 Dynamic retail pricing in EU legislation Demand side and distributed generation used for balancing & other markets Smart apps, data hubs, integrated with DSOs/TSOs software / Compliance with data protection regulation

15 GOVERNANCE

16 Thank

17 BACK UP SLIDES 17

18 WHAT TRANSMISSION SYSTEM OPERATORS DO FOR YOU

19 THE EU POWER SYSTEM IN TRANSITION KEY INFLUENCERS KEY REMEDIES ENTSO-E IN ACTION Politics & Regulation Predictable & coordinated policies Price signals to customer Technology & Operations Markets & Economics Implement market design & new technology 19

20 PERCENTAGES OF ELECTRICITY GENERATION FROM RENEWABLE ENERGY, NUCLEAR AND FOSSIL FUELS (2013 data from IEA WEO 2015 background map: COP21 climate protection commitment signatories)

21 SMART METERS Source: Telefonica

22 EU CODES: HARMONISATION OF OUR PROCESSES MARKET CODES Wider market integration CONNECTION CODES Allow more competition, new entrants, and enhance resources optimisation OPERATIONAL CODES Greener power, smarter consumption Connect new actors to the grid and enable them to play an efficient role Reinforced security of supply Plan, operate & monitor a grid with new challenges and new technologies 22

23 BUILD GRIDS FOR THE FUTURE Barriers identified in TYNDP 2016 Grid investments by b Exchange of flexibility Geopolitical Loop-flows Physical congestions Market integration Connect new entrants Allow energy transition 23

24 BUILDING GRIDS AND CREATING VALUE (TYNDP 2016) Consumers Society/Climate Higher grid cost: 1,5 2 /MWh but Emissions down by: 50 80% Emissions reduction only due to grid: 8% Lower wholesale prices: 1,5 5 /MWh Reduced spillage of renewable energy by: TWh 24

25 LOOKING AHEAD WHAT RESEARCH CAN DO The European Technology and Innovation Platform of Smart Networks for the Energy Transition is centered on networks, cooperation and system flexibility

26 Structure of the new roadmap: transmission and distribution - challenge oriented Transmision Distribution Challenge 1: Modernisation of the network Challenge2: Security & system stability Challenge 3: Flexibility Challenge 4: Economic & efficient power system Challenge 5: ICT & digitalization Challenge 1: Upgrading of the network Challenge 2: Reliability Challenge 3: Flexibility Challenge 4: ICT & Digitalization Challenge 5: Market design Challenge 6: DSO regulatory environment

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