RES support in Russia: Impact on capacity and electricity market prices

Russian renewable energy policy has undergone changes following an establishment of targets for installed capacity and power production using renewable energy sources and the introduction of new capacity based support scheme for renewable energy. The forecasted amount of future renewable power will not provide enough power production to meet growing demand for renewable energy; although, it will help with modernization of the energy sector and development of renewable technology and innovation. At the same time, the capacity support scheme for renewable energy may adversely affect capacity prices and become an additional burden for industrial consumers, who are already paying the cost of capacity support for conventional power plants, so-called Capacity Delivery Agreements (CDAs). This work assesses the impact of the new capacity based support scheme on capacity and electricity price formation. Modeling results show that the impact of capacity support for renewable energy is small compared to that of capacity support for conventional energy, suggesting that the Russian energy production mix will continue to be dominated by fossil fuel based generation.     

Cooperation mechanisms to achieve EU renewable targets

There are considerable benefits from cooperating among member states on meeting the 2020 renewable energy sources (RES) targets. Today countries are supporting investments in renewable energy by many different types of support schemes and with different levels of support. The EU has opened for cooperation mechanisms such as joint support schemes for promoting renewable energy to meet the 2020 targets. The potential coordination benefits, with more efficient localisation and composition of renewable investment, can be achieved by creating new areas/sub-segments of renewable technologies where support costs are shared and credits are transferred between countries.Countries that are not coordinating support for renewable energy might induce inefficient investment in new capacity that would have been more beneficial elsewhere and still have provided the same contribution to meeting the 2020 RES targets. Furthermore, countries might find themselves competing for investment in a market with limited capital available. In both cases, the cost-efficiency of the renewable support policies is reduced compared to a coordinated solution.Barriers for joint support such as network regulation regarding connection of new capacity to the electricity grid and cost sharing rules for electricity transmission expansion are examined and examples given. The influence of additional renewable capacity on domestic/regional power market prices can be a barrier. The market will be influenced by for example an expansion of the wind capacity resulting in lower prices, which will affect existing conventional producers. This development will be opposed by conventional producers, whereas consumers will support such a strategy.A major barrier is the timing of RES targets and the uncertainty regarding future targets. We illustrate the importance of different assumptions on future targets and the implied value of RES credits. The effect on the credit price for 2020 is presented in an exemplary case study of 200 MW wind capacity.     

A strategic review of electricity systems models

Electricity systems models are software tools used to manage electricity demand and the electricity systems, to trade electricity and for generation expansion planning purposes. Various portfolios and scenarios are modelled in order to compare the effects of decision making in policy and on business development plans in electricity systems so as to best advise governments and industry on the least cost economic and environmental approach to electricity supply, while maintaining a secure supply of sufficient quality electricity. The modelling techniques developed to study vertically integrated state monopolies are now applied in liberalised markets where the issues and constraints are more complex. This paper reviews the changing role of electricity systems modelling in a strategic manner, focussing on the modelling response to key developments, the move away from monopoly towards liberalised market regimes and the increasing complexity brought about by policy targets for renewable energy and emissions. The paper provides an overview of electricity systems modelling techniques, discusses a number of key proprietary electricity systems models used in the USA and Europe and provides an information resource to the electricity analyst not currently readily available in the literature on the choice of model to investigate different aspects of the electricity system.     

德国《可再生能源法》2014年最新改革解析及启示

德国政府计划于2014年对可再生能源支持政策进行全面改革,此次改革仍保留了《可再生能源法2012》的整体架构,重点是要控制非水电可再生能源的补贴成本。采取的主要措施包括控制风电、光伏和生物质发电年度装机容量增长目标,补贴重点侧重更加经济有效的可再生能源类型(即陆上风电和光伏),上网电价递减率与年度新增装机容量挂钩的灵活限额机制,调整上网电价递减周期等。同时通过直接营销和拍卖等市场机制,让可再生能源更加融入市场。这标志着德国可再生能源的发展进入到引导投资和重点扶持的新阶段。建议借鉴德国《可再生能源法》完善我国可再生能源支持政策,包括针对不同可再生能源的技术特点制定完善的、自适应的上网电价模型,顺应技术发展规律实行"老机老电价、新机新电价"的电价调整机制,不断提高补贴手段的市场化和有效性等。     

Situations and problems of renewable energy in the Region of Murcia,Spain

Renewable energies in Spain have been promoted since 2002, proof of this lies in the fact that in 2007 renewable energy accounted for 6.9% of the consumption of primary energy. The renewable energies market is one of the sectors with the greatest growth in recent years in Spain and is key to the energy policies at national level.Both at national and regional level diverse targets have been set for the production of renewable energies, this article seeks to analyse the potential, current state, and perspectives of renewable energies in the Region of Murcia, investigating the possibilities of fulfilling the objectives established.The solar energy potential should be highlighted, where most of the territory has more than 5.0 kWh/m²; also the wind power potential, where in certain areas there are winds of more than 6 m/s; and the biogas potential due to the extensive livestock herds. With reference to the targets for photovoltaic and wind power, these have been reached; but in the rest of the energy sources the fulfilment of the objectives depends on favourable management and administration policies.Likewise, a comparative study of the state of the Region of Murcia has also been carried out, taking the national situation as the reference.     

Joint electricity and carbon market for Northeast Asia energy interconnection

Decarbonization of the electricity sector is crucial to mitigate the impacts of climate change and global warming over the coming decades. The key challenges for achieving this goal are carbon emission trading and electricity sector regulation, which are also the major components of the carbon and electricity markets, respectively. In this paper, a joint electricity and carbon market model is proposed to investigate the relationships between electricity price, carbon price, and electricity generation capacity, thereby identifying pathways toward a renewable energy transition under the transactional energy interconnection framework. The proposed model is a dynamically iterative optimization model consisting of upper- level and lower-level models. The upper-level model optimizes power generation and obtains the electricity price, which drives the lower-level model to update the carbon price and electricity generation capacity. The proposed model is verified using the Northeast Asia power grid. The results show that increasing carbon price will result in increased electricity price, along with further increases in renewable energy generation capacity in the following period. This increase in renewable energy generation will reduce reliance on carbon-emitting energy sources, and hence the carbon price will decline. Moreover, the interconnection among zones in the Northeast Asia power grid will enable reasonable allocation of zonal power generation. Carbon capture and storage (CCS) will be an effective technology to reduce the carbon emissions and further realize the emission reduction targets in 2030-2050. It eases the stress of realizing the energy transition because of the less urgency to install additional renewable energy capacity.     

The renewable energy targets of the Maghreb countries: Impact on electricity supply and conventional power markets

Morocco, Algeria and Tunisia, the three countries of the North African Maghreb region, are showing increased efforts to integrate renewable electricity into their power markets. Like many other countries, they have pronounced renewable energy targets, defining future shares of “green” electricity in their national generation mixes. The individual national targets are relatively varied, reflecting the different availability of renewable resources in each country, but also the different political ambitions for renewable electricity in the Maghreb states. Open questions remain regarding the targets’ economic impact on the power markets. Our article addresses this issue by applying a linear electricity market optimization model to the North African countries. Assuming a competitive, regional electricity market in the Maghreb, the model minimizes dispatch and investment costs and simulates the impact of the renewable energy targets on the conventional generation system until 2025. Special emphasis is put on investment decisions and overall system costs.     

The impact of European balancing rules on wind power economics and on short-term bidding strategies

Wind power represents a significant percentage of the European generation mix and this will increase to fulfill the renewable energy targets. Different balancing rules are applied to wind power among the countries; for instance, to what extent wind power producers (WPPs) are responsible for the energy imbalances and how those imbalances are penalized. This paper discusses those different rules and evaluates their effects on WPP bidding strategies. To do so, a quantitative analysis is presented for an offshore wind farm, considering the differences in the balancing rules and prices of Belgium, Denmark, Germany and the Netherlands. The quantitative approach consists of a stochastic optimization model that maximizes the profits of a WPP by trading in different markets (day-ahead and intraday) and computes the final energy delivered. The model considers uncertainties of most important parameters such as wind energy forecasts and prices at different time frames. The results show that the imbalance pricing design and the allocation of balance responsibility significantly affect WPP’ revenues. Additionally, WPPs deviate differently from the expected energy depending on the balancing rules, which can impact the system. Furthermore, these balancing rules should be considered with other market regulations, such as the design of support schemes.     

The role of public policy in emerging green power markets: an analysis of marketer preferences

Green power marketing has been heralded by some as a means to create a private market for renewable energy that is driven by customer demand for green products. This article challenges the premise — sometimes proffered in debates over green markets — that profitable, sizable, credible markets for green products will evolve naturally without supportive public policies. Relying primarily on surveys and interviews of US green power marketers, the article examines the role of specific regulatory and legislative policies in ‘enabling’ the green market, and searches for those policies that are believed by marketers to be the most conducive or detrimental to the expansion of the green market. We find that marketers: (1) believe that profitable green power markets will only develop if a solid foundation of supportive policies exists; (2) believe that establishing overall price competition and encouraging customer switching are the top priorities; (3) are somewhat leery of government-sponsored or mandated public information programs; and (4) oppose three specific renewable energy policies that are frequently advocated by renewable energy enthusiasts, but that may have negative impacts on the green marketers’ profitability. The stated preferences of green marketers shed light on ways to foster renewables by means of the green market. Because the interests of marketers do not coincide perfectly with those of society, however, this study also recognizes other normative perspectives and highlights policy tensions at the heart of current debates related to green markets. By examining these conflicts, we identify three key policy questions that should direct future research: To what extent should price competition and customer switching be encouraged at the expense of cost shifting? What requirements should be imposed to ensure credibility in green products and marketing? How should the green power market and broader renewable energy policies interact?     

中国可再生能源发展状况、展望及政策措施建议

2010年我国可再生能源步入全面规模化开发利用阶段,水电装机总量突破2亿kW,风电并网运营容量突破3000万kW,太阳能发电市场开始启动,生物质能多元化快速发展。但实现中长期战略发展目标的任务仍然艰巨。2011年,新可再生能源发展规划目标将出台,应着力完善可再生能源市场、价格、财税等政策,重点出台新能源配额制、落实可再生能源发电全额保障性收购制度,促进可再生能源电力尤其是风电的上网和消纳。     

Engineering practices for the integration of large-scale renewable energy VSC-HVDC systems

With the continuous development of power electronic devices, intelligent control systems, and other technologies, the voltage level and transmission capacity of voltage source converter (VSC)-high-voltage direct current (HVDC) technology will continue to increase, while the system losses and costs will gradually decrease. Therefore, it can be foreseen that VSC-HVDC transmission technology will be more widely applied in future large-scale renewable energy development projects. Adopting VSC-HVDC transmission technology can be used to overcome issues encountered by large-scale renewable energy transmission and integration projects, such as a weak local power grid, lack of support for synchronous power supply, and insufficient accommodation capacity. However, this solution also faces many technical challenges because of the differences between renewable energy and traditional synchronous power generation systems. Based on actual engineering practices that are used worldwide, this article analyzes the technical challenges encountered by integrating large-scale renewable energy systems that adopt the use of VSC-HVDC technology, while aiming to provide support for future research and engineering projects related to VSC-HVDC-based large-scale renewable energy integration projects.     

Spanish energy roadmap to 2020: Socioeconomic implications of renewable targets

The European Union has established challenging targets for the share of renewable energies to be achieved by 2020; for Spain, 20% of the final energy consumption must be from renewable sources at such time. The aim of this paper is the analysis of the consequences for the electricity sector (in terms of excess cost of electricity, investment requirements, land occupation, CO₂ emissions and overcapacity of conventional power) of several possibilities to comply with the desired targets. Scenarios are created from different hypotheses for energy demand, biofuel share in final energy in transport, contribution of renewables for heating and cooling, renewable electricity generation (generation mix, deployment rate, learning curves, land availability) and conventional power generation (lifetime of current installations, committed deployment, fossil fuel costs and CO₂ emissions cost). A key input in the estimations presented is the technical potential and the cost of electricity from renewable sources, which have been estimated in previous, detailed studies by the present authors using a methodology based on a GIS (Geographical Information System) and high resolution meteorological data. Depending on the scenario, the attainment of the targets will lead to an increase in the cost of electricity from 19% to 37% with respect to 2007.     

History of electricity network control and distributed generation in the UK and Western Denmark

Achieving the ambitious targets for renewable electricity generation in Europe will require harnessing a diverse range of energy sources, many of which are decentralised, small scale, and will be connected directly to the distribution networks. To control the two-way flows of electricity, the current passive network configurations will need to be replaced by active network management. This will require, in particular, innovations in intelligent IT-based network control. This paper draws on research on Large Technical Systems (LTS) and control systems in other sectors to analyse the evolution of electricity network control in western Denmark and the UK, since the Second World War. It concludes that lack of progress in network control has only recently—largely because of the combined needs to provide greater reliability and ‘green’ electricity within liberalised markets—emerged as a ‘reverse salient’ that will prevent the further development of the LTS of electricity supply industry towards desired direction. Breaking the inertia in the LTS and its control systems will require determined government action to promote learning and collaborative search for solutions. The UK might well draw lessons from the Danish pragmatism in fostering innovation through targeted support to collaborative R&D efforts towards sustainability objectives.     

Integrated energy in Germany–A critical look at the development and state of integrated energies in Germany

In the face of global warming and a scarcity of resources, future energy systems are urged to undergo a major and radical transformation. The recognition of the need to embrace renewable energy technologies and to move toward decarbonization has led to significant changes in the German energy generation, consumption and infrastructure. Ambitious German national plans to decrease carbon dioxide emissions on one side, and the unpredictable and volatile nature of renewable energy sources on the other side have elevated the importance of integrated energies in recent years. The deployment of integrated technologies as a solution to interlink various infrastructures creates opportunities for increasing the reliability of energy systems, minimizing environmental impacts and maximizing the share of renewable resources. This paper discusses the role of integrated energy systems in supporting of sustainable solutions for future energy transitions. Moreover, the reinforcement of this movement with the help of different technologies will be discussed and the development of integrated energy systems in Germany will be reviewed.     

Analysing the effectiveness of renewable energy supporting policies in the European Union

With several mid-term policies in place to support the development of renewables, the European Union (EU) seems on its way to increasing the share of renewable energy to the targeted 12% by the year 2010. It is however, yet unclear how effective these policies are, which technologies will see the largest growth and which countries will indeed be able to meet their targets. This article discusses a monitoring protocol that was developed to monitor this effectiveness and judge whether targets will be met. In a step-wise approach policy instruments are characterised and analysed, leading to a quantitative assessment of the likely growth in renewable energy production for each individual technology and country in case no policy changes occur. Applying this monitoring protocol at the EU-level we show that with the current policies in place renewable energy production will reach a share of 8–10% in 2010, and the share of electricity production will reach a level of 15–18% of total electricity consumption, whereas the target is 22.5%. Additional policies are clearly needed to achieve the ambitious targets set.     

The Smart Grid – A saucerful of secrets?

To many, a lot of secrets are at the bottom of the often-cited catchphrase “Smart Grid”. This article gives an overview of the options that information and communication technology (ICT) offers for the restructuring and modernisation of the German power system, in particular with a view towards its development into a Smart Grid and thus tries to reveal these secrets. After a short outline on the development of ICT in terms of technology types and their availability, the further analysis highlights upcoming challenges in all parts of the power value chain and possible solutions for these challenges through the intensified usage of ICT applications. They are examined with regard to their effectiveness and efficiency in the fields of generation, transmission, distribution and supply. Finally, potential obstacles that may defer the introduction of ICT into the power system are shown. The analysis suggests that if certain hurdles are taken, the huge potential of ICT can create additional value in various fields of the whole power value chain. This ranges from increased energy efficiency and the more sophisticated integration of decentralised (renewable) energy plants to a higher security of supply and more efficient organisation of market processes. The results are true for the German power market but can in many areas also be transferred to other industrialised nations with liberalised power markets.     

Renewable energy policy in Turkey with the new legal regulations

Since the energy crises in the 1970’s, public and private decision makers are considering how to achieve a sustainable transition from fossil fuel based energy to sustainable and clean energies - namely renewable energies. Combined with the improvement of energy efficiency and the rational use of energy, renewable energy can provide everything fossil fuels currently offer in terms of heating and cooling, electricity generation and transportation. Renewable energy technologies posses many long term benefits including energy security, job creation, business opportunities, sustainable development and prevention of global warming.Turkey’s population is growing at an annual rate of 1.04%. If Turkey uses only traditional energy sources, it simply will not have enough energy capacity for its population. Renewable energy sources have the potential to make a large contribution to Turkey’s sustainable and independent energy future.Turkey aims to utilize its energy potential, including from renewable sources in a cost-effective manner. Turkey targets the share of renewable resources in electricity generation to be at least 30% by 2023 has in its 2009 Electricity Market and Security of Supply Strategy. Positive achievements have been obtained in renewable energy development and manufacturing in Turkey over the past decade. The renewable energy related legislation has been intensified. To meet its 30% target, the current promotion mechanism for renewable sources of electricity relies on feed-in tariffs for different renewable energy sources. Large hydropower is already competitive to conventional fossil-based electricity, so feed-in tariffs in the new RE Law are set to facilitate expanding the deployment of other, less mature renewable energy technologies.     

Opportunities and challenges for renewable energy policy in China

Renewable energy is the inevitable choice for sustainable economic growth, for the harmonious coexistence of human and environment as well as for the sustainable development. Government support is the key and initial power for developing renewable energy. In this article, an overall review has been conducted on renewable energy development policy (including laws and regulations, economic encouragement, technical research and development, industrialized support and government model projects, etc.) in China. On this basis, a systematic analysis has been conducted on the disadvantages of renewable energy development policy. On the point of long-term effective system for renewable energy development, a series of policy advice has been offered, such as strengthening the policy coordination, enhancing regional policy innovation, echoing with clean development mechanism, implementing process management, constructing market investment and financing system. It is expected that the above advices could be helpful to ever-improvement of renewable energy development policy.     

Humankind’s detour toward sustainability: past,present, and future of renewable energies and electric power generation

Renewable energies have been the primary energy source in the history of the human race. During the last 200 years, industrialized countries have shifted their energy consumption toward fossil fuels. Contemporary electric power generation is based on non-renewable resources such as oil, coal, and nuclear power. New efficient and cost-effective small-scale renewable energy generation options are commercially available today. Market distortions are to be overcome in order to make renewable energies cost-competitive in today’s economic environment. Social, environmental and also economic reasons will reverse the worldwide primary energy use back to renewables and thus reapproach a sustainable economic system based on traditional and new high-tech technologies.     

Power TAC: A competitive economic simulation of the smart grid

Sustainable energy systems of the future will need more than efficient, clean, low-cost, renewable energy sources; they will also need efficient price signals that motivate sustainable energy consumption as well as a better real-time alignment of energy demand and supply. The Power Trading Agent Competition (Power TAC) is a rich competitive simulation of future retail power markets. This simulation will help us to understand the dynamics of customer and retailer decision-making and the robustness of market designs, by stimulating researchers to develop broker agents and benchmark them against each other. This will provide compelling, actionable information for policymakers and industry leaders. We describe the competition scenario in detail, and we demonstrate behaviors that arise from the interaction of customer and broker models.