The PV GRID Project Integration of PV into German DSO networks Regulatory and legal issues Dr. Oliver Franz, RWE D AG Munich 20th June 2013 1
Outline A few remarks on what RWE does to ensure the integration of RES and especially PV into its grids The potential of smart grids Regulatory and legal issues of RES and PV integration Legal situation in Germany: DSOs have the (almost unconditioned) legal duty to expand networks The idea of curtailment in general Curtailment with respect to PV especially 6 (2) Nr. 2 EEG 11 EEG (Einspeisemanagement) Metering issues with respect to RES and in general 2 17/06/2013 2
A few remarks on what RWE does to ensure the integration of RES and especially PV into its grids 3
In the German country side exporting grids are no longer an exemption but are becoming the norm Quelle: RWE D AG, Smart country 4
Massive integration of PV into the DSO grids Numbers for Westfalen Weser Ems Verteilnetz (now part of Westnetz) EEG feed-in tariff 1) : 46,75 ct/kwh 43,01 ct/kwh 39,14 ct/kwh 34,05 ct/kwh 24,43 ct/kwh 33,03 ct/kwh 28,74 ct/kwh 20,76 ct/kwh 1) Feed-in tariff for installations up to 30 kw on buildings 5
New technologies to improve RES integration are already being implemented by RWE DSO Network Improvement of active power transport Curtailment of RES peaks Usage of decentralised storage Demand Side Management Supra conduction Improvement of voltage control (U-Reg) Cos( )-regulation for RES Curtailment of RES peaks Intelligent and controllable substations "voltage-controller (power electronics)" Examples for RWE s research activities/projects: Table shows options that are usable from a technical point of view without any economic analysis 6
PV Grids s portfolio of technical solutions shows good correlation to RWE s technology projects Low voltage Medium voltage 17/06/2013 7
The potential of smart grids 8
New challenges for the grids smart grids offer new design elements for distribution grids > Smart grids offer efficient and economical design of modern grids New technologies enable more flexible operation of the grids (e.g. controllable transformer stations) Improved grid observation helps to reduce security margins ICT will improve both, market and grid operation > BUT: exclusive usage of new flexibilities by markets will cause additional costs in grid infrastructure 40 bn. 30 20 10 0 Cost effects of Smart Technologies (aggregated values 2030) Cost reduction for grid expansion Conventional technologies Innovative Technologies Adjustment technical guidance Limitation of RES peaks Storage (grid based ) forward looking grid planning DSM (grid based) Reference scenario (NDP 2012) reduction of load DSM (market based) Storage (market based ) Source: dena distribution grid study, 2012 Investment costs only, no additional operational costs considered No aggregation of individual benefits! 9
Regulatory and legal issues of RES and PV integration 10
Legal situation in Germany DSOs have the (almost unconditioned) legal duty to expand networks 17 (1) EnWG (network connection [on all levels]) Denial of connection is possible accord. to 17 (2) 1 st sentence EnWG only, if the connection is impossible or unreasonable to provide due to operational or other economical or technical reasons already having considered the aims of 1 EnWG > Exemption! 18 (1) EnWG (general duty to connect in LV) 11 (1) EnWG (general duty of the DSOs to extend/enhance) 5 EEG (1) and (2) (immediate and preferential connection for RES including choice of network level by RES proprietor) 9 (1) EEG (duty to enhance network capacity) 11 (1) sentence 1 and 2 EEG (Einspeisemanagement) cf. below 17/06/2013 11
Connecting RES to the grid 100% feed in or curtailment? Standardised annual duration curves of RES feed-in P/P max 1) 120% 100% 80% 60% 40% 20% 0% offshore WEA PV onshore WEA hours Max. load from RES Lost energy [W cut /W ges ] onshore Wind offshore PV 100% P max 0 % 0 % 0 % 90% P max <0,1 % 0,2 % <0,1 % 80% P max 0,4 % 1,2 % 0,6 % 70% P max 1,3 % 3,1 % 2,1 % Source: publication by TenneT TSO RES feed-in for March 2012- February 2013 > A reduction of the maximum RES peak power /feed in into the grid results in minor energy losses only as peak power is reached only seldom by wind farms and PVs alike > The current German RES law (EEG) already allows curtailment of small PVs (i.e. smaller than 30 kw) as an alternative to a direct control by the DSO under 11 EEG (if curtailed the PV has to provide P feed in,max =70% of P installed ) 1) It should be noticed that in general the following holds: P max < P inst 12
Reduction of admissible RES peak power limits necessity of grid extension considerably > Relevant for grid utilisation/capacity is the installed power [MW], not the injected energy [MWh] > Limiting maximum admissible feed in from RES = reduced grid extension needs > Rather big effect on grid investments corresponding to a small impact on injected energy quantities (which are of no or even neg. value in times of overproduction) Approximated cost benefit analysis for Typical PV infeed curves curtailment of PV and Wind in DE (2030) 4 [kw] 3 Temperatur effect: Hot PV modules less efficient Cloudy day (August) P inst P max P limit Typical gap Energy lost by RES limitation savings Reduced grid expansion costs 2 Sunny day (May) Energy lost: 2% 1 0 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 21 [h] Positive effects may only be harvested if all intermittent RES are subject to curtailment! lost value Reduced extension in distribution grid Costs of energy not injected 13
Reducing curtailment losses by aligning PV in easterly and/or westerly direction Source: IBC solar PV installation aligned in easterly and westerly direction real monthly production and theoretical production if inverter was cut at 70% of P max 14
Intermediate result from a DSO s point of view Curtailment is a powerful and almost no regret option as it either stops or at least delays investments (almost no sunk costs ) For curtailment to work towards a more cost effective network expansion, all intermittent installations have to participate In future smart grids curtailment might also become more intelligent ( flexible curtailment) For the RES installations this policy has the disadvantage of income losses (if no reimbursement is to be offered by law) but the possible losses might be reduced by self consumption/storage, aligning PVs into easterly and/or westerly direction, different set ups of inverter size and P max 15 17/06/2013 15
11 EEG Feed in management by DSOs (Einspeisemanagement) is only a work around Feed in management accord. to EEG is only an auxiliary measure used by the DSO to cover the time until it is possible to optimize, strengthen or enhance the grid cf. e.g. EEG 2009 preambleb consolidated version, p. 38. Nach einer Übergangszeit dürfte der Fall des Überschreitens der Netzkapazität praktisch nicht mehr vorkommen, da die Verpflichtung der Netzbetreiber zur Kapazitätserweiterung nach 9 gerade derartige Engpässe verhindern soll. Wird dennoch die Netzkapazität überschritten, deutet dies darauf hin, dass der jeweilige Netzbetreiber seiner Verpflichtung zur Kapazitätserweiterung nicht oder nicht vollständig nachgekommen ist. 16
Feed in management accord. to 11 EEG State of play and DSO view State of play: All RES >30 kw (old and new) are subject to feed in management i.e. have to bear the installation of equipment that (technically) enables the DSO to steer the installation DSO must make sure that maximum of RES kwh is still absorbed and inform proprietors If RES output is cut accord. to 11 EEG by DSOs RES is paid the lost energy at its feed in tariff Some scholars/scientists argue that steering equipment should only be installed if there is currently a bottleneck in the DSO network DSO view: It is hard to estimate where bottlenecks might occur (decision to install RES is decentral ), therefore steering equipment is to be understood as a form of insurance IT systems etc. for feed in management are not for free, why build them, if it is only a temporary work around? Positive effects on network capacity and network costs will only be attainable if feed in management becomes permanent (within boundaries) and is applicable to all installations Traffic light system as proposed by inter alia BDEW and EURELECTRIC shows way into the future 17/06/2013 17
Metering issues with respect to RES and in general 18
(Smart) metering for RES/PV installations? An example of what regulation is and does The issue of metering the output of RES/PV installations is now almost to complicated to explain in Germany 1. Accord. to 7(1) EEG the RES proprietor might either choose the DSO or another qualified party as its meter operator (and some use this 2 nd option), but 2. accord. to 7(1) sentence 2 EEG the 21b i EnWG do also apply to RES metering, so that 3. when intelligent metering systems accord. to 21 c and 21 d EnWG become available ( are technically feasible ) all new RES installations >7 kw will be equipped with such a metering system (why only new ones???) duty is relevant for all meter operators! 4. also if any normal metering point is equipped with an intelligent metering system in the roll out any RES on the same site will have to connect to that metering system (i.e. needs a comm. device and an electronic meter no more Ferraris meters!) 17/06/2013 19
(Smart) metering for RES/PV installations? An example of what regulation is and does The issue of metering the output of RES/PV installations is now almost to complicated to explain in Germany continued 5. The RWE DSOs know and accept at least five different ways of installing meters at different RES installations depending on the actual RES business model (kaubiwei, Überschußeinspeiser, Eigenverbrauch etc.) 6. In addition accord. to 6(1) and (2) EEG all installations >30kW are subject to feed in management (cf. above) and must thus be equipped with a device that allows the DSO to read its meter and to reduce its production 7. Finally the German metering market is liberalised, so that it is absolutely possible (but maybe not too probable) that up to three meter operators will have to coordinate themselves around one but possible two gateways in one installation and we have yet to talk about gas!? 17/06/2013 20
Back up 21
Traffic light system guarantees system stability, maximum market operation but minimum grid extension Principle of traffic light system (by BDEW): > The highest premise is system availability (responsible: Grid operator) > Traffic lights inform the market participants of the grid load factor and capacities. > Price signals as incentives are possible during non critical periods. > Assured available flexibilities are essential for the interaction among Market and Grid. Traffic light system allows: > Optimal utilisation of grid infrastructure and most flexible market operation linked with most economic market and grid design > Precise allocation of grid investments by identification of most cost relevant bottlenecks Market Market out of operation Market operators and actions coordinated by grid operator Market operation in compliance with the declared time tables and the tolerable control deviation Grid Grid control to prevent a total or partial black out Voltage or thermal problems in the grid No limitations Downstream Smart Markets 22 Page 22
Getting the Traffic light system into operation Red traffic light: What happens? > Grid operator has total control (cf. 13, 14 EnWG today -> hazard control) and uses all technical means to prevent a (partial) black-out Yellow traffic light: > Grid operator uses voluntary agreements including some (financial) compensation with some network users to overcome temporary network bottlenecks (i.e. mostly local) > Some network users and their supply companies are unable to fulfil their contracts as planned but most users are unaffected (i.e. face a green light de facto). Green traffic light: > 100% market-led operation possible > No bottlenecks become binding Getting traffic light system into operation further legislation is needed inter alia concerning: > Volume of network capacity that is considered to be consistent with a green light > Volume of possible bottlenecks that may be dealt with via a yellow light > Exact responsibilities, duties and rights of parties under the red light (cf. network codes) Downstream Smart Markets 23 Page 23
Thank you for your attention Dr. Oliver Franz oliver.franz(at)rwe.com Disclaimer: The sole responsibility for the content of this presentation lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein.