Increasing penetration of renewable and distributed electricity generation and the need for different network regulation

The amount of decentralised electricity generation (DG) connected to distribution networks increases across EU member states. This increasing penetration of DG units poses potential costs and benefits for distribution system operators (DSOs). These DSOs are regulated since the business of electricity distribution is considered to be a natural monopoly. This paper identifies the impact of increasing DG penetration on the DSO business under varying parameters (network characteristics, DG technologies, network management type) and argues that current distribution network regulation needs to be improved in order for DSOs to continue to facilitate the integration of DG in the network. Several possible adaptations are analysed.     

Towards a future with large penetration of distributed generation: Is the current regulation of electricity distribution ready? Regulatory recommendations under a European perspective

The European Energy Policy promotes renewable energy sources and energy efficiency as means to mitigate environmental impact, increase security of supply and ensure economic competitiveness. As a result, the penetration levels of distributed generation (DG) in electricity networks are bound to increase. Distribution networks and distribution system operators (DSOs) will be especially affected by growing levels of DG. This paper reviews the current regulation of distribution in the European Union Member States, focusing on those aspects that might hinder the future integration of DG. Several regulatory issues that may hinder a successful integration of DG have been identified. Recommendations to improve the current situation are proposed. Regarding economic signals sent to DG, connection charges and cost-reflective use-of-system charges together with incentives to provide ancillary services are the key aspects. Concerning DSOs regulation, unbundling from generation and supply according to the European Electricity Directive, incentives for optimal planning and network operation considering DG, including energy losses and quality of service, and innovation schemes to migrate to active networks are the most relevant topics.     

Grid integrated renewable DG systems: A review of power quality challenges and state-of-the-art mitigation techniques

Increased energy demands due to rapid industrialization, environmental concerns with fossil fuel–based generation, diminishing fossil energy resources, transmission network congestion, and technical performance deterioration are the motivations behind the integration of small renewable distributed generation (DG) units and turning the existing power systems into a restructured one. Optimizing the technical benefits offered by DG placement is a well-known challenge for distribution network operators (DNOs) for both fossil and renewable energy resource–based DGs, but renewable DG systems have several power quality (PQ) challenges associated additionally. Power quality is a very significant characteristic of renewable DG systems because today's loads are more sensitive to PQ disturbances and penetration of renewable energy as well as nonlinear loads is proliferating in distribution power networks. So the need for innovative power quality improvement (PQI) techniques becomes inevitable due to ongoing reformation in traditional distribution networks by the integration of renewable energy. This article presents a comprehensive analysis of power quality challenges with grid integration of renewable DG systems and current research status of associated mitigation techniques. Firstly, this paper puts emphasis on theoretically illustrating all the crucial power quality challenges associated with grid integration of renewable energy, and secondly, a thorough survey, of all PQI techniques introduced till date, is elaborated along with highlighting the opportunities for future research. Furthermore, all the crucial power quality issues, the impact of high penetration of renewable energy and mitigation techniques on power quality, are demonstrated also by simulating a grid integrated PV-based DG system in MATLAB/Simulink. This article is believed to be very beneficial for academics as well as industry professionals to understand existing PQ challenges, PQI techniques, and future research directions for renewable energy technologies.     

Wind electricity in Greece: recent developments, problems and prospects

Electricity generation from renewable energy sources (RES) in Greece is regulated by the energy law 2244/94 which provides incentives to attract private investments in the RES sector. The wind energy sector is highly attractive due to the verified large wind potential in many regions of the country. This paper presents the current situation concerning wind energy exploitation, analyses the technical problems following the penetration of wind power into electricity grids, and the consequent technical solutions proposed by the Public Power Corporation (PPC). It also describes the perspectives for high wind power penetration into Greek power system.     

Revisiting long-run relations in power markets with high RES penetration

Electricity generation from renewable energy resources (RES) has become increasingly significant to reach EU and emissions reduction targets. At the same time, one of the main EU policy goals has been the creation of a common internal energy market for Europe. In this paper, we focus on these two issues previously studied separately, considering their possible interactions. We first analyze the long-run relationship between day-ahead electricity prices and fuel prices (natural gas and coal) looking at two samples of years characterized by low and high RES penetration, then we explore the integration of EU markets.We show that the electricity–fuel nexus found over 2006–2008 changed dramatically over 2010–2014 for the majority of countries considered. In particular, the long-run dependence of electricity from gas and coal prices is much lower in recent years. Furthermore, our results confirm that the considered EU countries are becoming less integrated as RES-E increases. Our findings suggest that nationally implemented policies to support renewables are successful in increasing RES penetration, but they have lessened the linkage among EU markets, then making integration more difficult to obtain.     

Assessing the economic value of renewable distributed generation in the Northeastern American market

Incentive programs and tax rebates are commonly offered to offset the high initial costs of small-scale renewable energy systems (RES) and foster their implementation. However, the economic costs of RES grid integration must be fully known in order to determine whether such subsidies are justified. The objective of this paper is to assess the economic value of RES, including their environmental benefits, using hourly generation information in conjunction with hourly wholesale price data. Reaching the paper′s objective will provide a better estimate of the bias that could result from neglecting 1) the time pattern of the hourly wholesale price, 2) the impacts of carbon taxes on the hourly wholesale price and 3) the value of the marginal hourly GHG emissions. Selected RES include two types of grid-connected photovoltaic panels (3 kWp mono- and poly-crystalline) and three types of micro-wind turbines (1, 10 and 30 kW) modeled for different climatic conditions in the province of Quebec (Canada). The cost of electricity is based on the technical performance of these RES using a life cycle costing methodology. The economic value of RES electricity is estimated using the hourly wholesale electricity price in Northeastern American markets in 2006–2008. Results show that distributed generation (DG) has no economic benefits using the selected RES, even with a US$100/tonne of CO₂-equivalent carbon tax. This finding remains the same when the value of the avoided GHG emissions is fully internalized, except for one scenario (micro-wind 30 kW). Our results are key to understanding the extent to which subsidies for distributed RES can be economically sustainable when the latter are integrated into regional networks driven by centralized electricity production.     

Electricity market models and RES integration: The Greek case

This paper presents an extensive analysis of the Greek electricity market for the next 7-year period (2014–2020) based on an hour-by-hour simulation considering five different RES technologies, namely wind, PV, small hydro, biomass and CHP with emphasis on PV integration. The impact of RES penetration on the electricity market operation is evaluated under two different models regarding the organization of the Greek wholesale day-ahead electricity market: a mandatory power pool for year 2014 (current market design) and a power exchange for the period 2015–2020 (Target Model). An integrated software tool is used for the simulation of the current and the future day-ahead market clearing algorithm of the Greek wholesale electricity market. Simulation results indicate the impact of the anticipated large-scale RES integration, in conjunction with each market model, on specific indicators of the Greek electricity market in the long-term.     

Sustainable electricity generation fuel mix analysis using an integration of multicriteria decision-making and system dynamic approach

To achieve a national energy access target of 90% urban and 51% rural by 2035, combat climate change, and diversify the energy sector in the country, the Zambian government is planning to integrate other renewable energy resources (RESs) such as wind, solar, biomass, and geothermal into the existing hydro generation–based power system. However, to achieve such targets, it is essential for the government to identify suitable combination of the RESs (electricity generation fuel mix) that can provide the greatest sustainability benefit to the country. In this paper, a multicriteria decision-making framework based on analytic hierarchy process and system dynamics techniques is proposed to evaluate and identify the best electricity generation fuel mix for Zambia. The renewable energy generation technologies considered include wind, solar photovoltaic, biomass, and hydropower. The criteria used are categorized as technical, economic, environmental, social, and political. The proposed approach was applied to rank the electricity generation fuel mix based on nine sustainability aspects: land use, CO₂ emissions, job creation, policy promotion affordability, subsidy cost, air pollution reduction, RES electricity production, RES cumulative capacity, and RES initial capital cost. The results indicate that based on availability of RESs and sustainability aspects, in overall, the best future electricity generation mix option for Zambia is scenario with higher hydropower (40%) penetration, wind (30%), solar (20%), and lower biomass (10%) penetration in the overall electricity generation fuel mix, which is mainly due to environmental issues and availability of primary energy resources. The results further indicate that solar ranks first in most of the scenarios even after the penetration weights of RES are adjusted in the sensitivity analysis. The wind was ranked second in most of the scenarios followed by hydropower and last was biomass. These developed electricity generation fuel mix pathways would enable the country meeting the future electricity generation needs target at minimized environmental and social impacts by 2035. Therefore, this study is essential to assist in policy and decision making including planning at strategic level for sustainable energy diversification.     

Distributed Generation in an isolated grid: Methodology of case study for Lesvos – Greece

The purpose of this article is to evaluate the economic effects of Distributed Generation (DG) in isolated grids and in particular Lesvos island in Greece. DG penetration is expected to rise in the following years since the island’s wind potential is still not exploited at a satisfying level. The necessity to replace the existing oil-fired power plant together with the need to cut down on greenhouse gases makes DG, and in particular wind turbines quite a promising technology. The present study with the use of specific software simulates the current electricity production for a whole year looking at its technical and economic performance. The sensitivity analysis that is carried out shows the effects of a potential increase in renewable energy sources (RES) capacity. Different sensitivity factors are investigated such as diesel price and hub height. The results show the environmental benefits of increased RES capacity and the variation of the cost of electricity production which remains high compared to other interconnected areas in Greece.     

A hybrid model for the optimum integration of renewable technologies in power generation systems

The main purpose of this work is to assess the unavoidable increase in the cost of electricity of a generation system by the integration of the necessary renewable energy sources for power generation (RES-E) technologies in order for the European Union Member States to achieve their national RES energy target. The optimization model developed uses a genetic algorithm (GA) technique for the calculation of both the additional cost of electricity due to the penetration of RES-E technologies as well as the required RES-E levy in the electricity bills in order to fund this RES-E penetration. Also, the procedure enables the estimation of the optimum feed-in-tariff to be offered to future RES-E systems. Also, the overall cost increase in the electricity sector for the promotion of RES-E technologies, for the period 2010–2020, is analyzed taking into account factors, such as, the fuel avoidance cost, the carbon dioxide emissions avoidance cost, the conventional power system increased operation cost, etc. The overall results indicate that in the case of RES-E investments with internal rate of return (IRR) of 10% the cost of integration is higher, compared to RES-E investments with no profit, (i.e., IRR at 0%) by 0.3–0.5 €c/kWh (in real prices), depending on the RES-E penetration level.     

Optimal planning of distributed generation systems in distribution system: A review

This paper attempts to present the state of art of research work carried out on the optimal planning of distributed generation (DG) systems under different aspects. There are number of important issues to be considered while carrying out studies related to the planning and operational aspects of DG. The planning of the electric system with the presence of DG requires the definition of several factors, such as: the best technology to be used, the number and the capacity of the units, the best location, the type of network connection, etc. The impact of DG in system operating characteristics, such as electric losses, voltage profile, stability and reliability needs to be appropriately evaluated. For that reason, the use of an optimization method capable of indicating the best solution for a given distribution network can be very useful for the system planning engineer, when dealing with the increase of DG penetration that is happening nowadays. The selection of the best places for installation and the preferable size of the DG units in large distribution systems is a complex combinatorial optimization problem.This paper aims at providing a review of the relevant aspects related to DG and its impact that DG might have on the operation of distributed networks. This paper covers the review of basics of DG, DG definition, current status of DG technologies, potential advantages and disadvantages, review for optimal placement of DG systems, optimizations techniques/methodologies used in optimal planning of DG in distribution systems. An attempt has been made to judge that which methodologies/techniques are suitable for optimal placement of DG systems based on the available literature and detail comparison(s) of each one.     

Assessing the performance and benefits of customer distributed generation developers under uncertainties

In this paper, the performance of customer-owned distributed generation (DG) units is quantified from different perspectives through an uncertainty study. A Monte Carlo-based method is applied to assess the stochastic operation of the customer-owned DG units in the power distribution system. Several cases are studied to analyze the impact on system performance of using such generators, with the emphasis on benefits. The results of the studied cases show that proper operation of customer-owned DG units placed close to significant consumption centers offers several benefits which lead to significant energy savings and improvement in the performance indices while maintaining the cost-effectiveness. Furthermore, based on the energy demand, different electricity price scenarios considering a cost sensitivity analysis are performed to indicate how the variations in electricity price influence each scenario’s feasibility. It is concluded that implementation of a proper energy purchase policy, and allocating the benefits of DG units to the owners, improves the economic performance of their investments and encourages customer DG developers to connect DG to the distribution network.     

Optimal management of hydrogen storage in stochastic smart microgrid operation

This paper presents an energy management and reserve scheduling scheme in order to optimally operate a 17-bus Low Voltage (LV) grid-tied microgrid, powered by photovoltaics, a wind turbine and a Fuel Cell (FC) utilizing on site hydrogen production and storage. Since high Renewable Energy Resources (RES) penetration is assumed, the expected deviations due to their intermittency are accounted for by the reserve provision by the FC system, in order to deviate as little as possible from the scheduled energy demand injected by the upstream grid. All these are incorporated into the operating cost of the microgrid assuming penalization of unscheduled power injections from the grid. The intermittency of RES and load are incorporated in the model by assuming known probability density functions for the forecasting errors. Then, energy and reserve scheduling is performed utilizing the Harmony Search algorithm in order to minimize the expected operating costs of the examined system by optimal reserve and energy provision from the stored/generated hydrogen. For that purpose, hourly optimizations are performed for a given year to assess the value on-site hydrogen generation and FC technologies add to microgrid operation and Distributed Generation (DG) in general. The purpose is to prove the use of hydrogen storage systems in effective uncertainty balancing. The hydrogen storage system appears to effectively counter the intermittency of renewables in moderate penetration, reducing the uncertainty costs. In higher renewable penetrations, due to uncertainty being already accounted for by the storage, the benefits of the RES penetration are even greater.     

Grid integration of intermittent renewable energy sources using price-responsive plug-in electric vehicles

Plug-in electric vehicles (PEVs) are expected to balance the fluctuation of renewable energy sources (RES). To investigate the contribution of PEVs, the availability of mobile battery storage and the control mechanism for load management are crucial. This study therefore combined the following: a stochastic model to determine mobility behavior, an optimization model to minimize vehicle charging costs and an agent-based electricity market equilibrium model to estimate variable electricity prices. The variable electricity prices are calculated based on marginal generation costs. Hence, because of the merit order effect, the electricity prices provide incentives to consume electricity when the supply of renewable generation is high. Depending on the price signals and mobility behavior, PEVs calculate a cost minimizing charging schedule and therefore balance the fluctuation of RES. The analysis shows that it is possible to limit the peak load using the applied control mechanism. The contribution of PEVs to improving the integration of intermittent renewable power generation into the grid depends on the characteristic of the RES generation profile. For the German 2030 scenario used here, the negative residual load was reduced by 15–22% and the additional consumption of negative residual load was between 34 and 52%.     

Distributed generation and distribution market diversity in Europe

The unbundling of the electricity power system will play a key role on the deployment of distributed generation (DG) in European distribution systems evolving towards Smart Grids. The present paper firstly reviews the relevant European Union (EU) regulatory framework: specific attention is paid to the concept of unbundling of power distribution sector in Europe. Afterwards, the focus is on the current state of penetration of DG technologies in the EU Member States and the corresponding interrelations with distribution features. A comparison between the unbundling of the distribution and supply markets using econometric indicators such as the Herfindahl–Hirschmann (I_HH) and the Shannon–Wiener (I_SW) indices is then presented. Finally, a comparative analysis between these indices and the current level of penetration of distributed generation in most EU is shown; policy recommendations conclude the paper.     

Convergence of rule-of-thumb sizing and allocating rules of distributed generation in meshed power networks

This paper presents different approaches to find out and address some rules for distributed generation (DG) integrated mesh type networks, which can be used in the management of future power systems. There are so many influencing factors of efficiency in the integration of DG that we need to analyze these influencing factors obviously. Hence, carefully planning plays a key role in tackling these challenges in the future power systems. In contrast to the majority of existing observations, we focus on the case where the underlying states are multiple and single DG allocations with changing conditions. In several previous studies, the best single bus has been investigated under the specified conditions. However, it follows from the results of this study that all issues concerning DG strongly depend on power network structure and DG locations, and it is worth to note that the best location changes with penetration levels. Also, it is observed that the all buses show different characteristics in terms of DG integrations under the different cases, moreover their optimum size and power factor are different. It means that optimum bus in a network changes with the conditions. On the other hand, the problematic buses can be occurred in voltage profile after the DG integration. As a result, an investigation of rule of thumb approach is performed for evaluation of performance enhancement of DG integrated meshed networks. The results are also used to discuss the integration of DG management strategies under various operating conditions.     

Design of a robust and efficient power electronic interface for the grid integration of solar photovoltaic generation systems

Nowadays, the penetration of photovoltaic (PV) solar power generation in distributed generation (DG) systems is growing rapidly. This condition imposes new requirements to the operation and management of the distribution grid, especially when high integration levels are achieved. Under this scenario, the power electronics technology plays a vital role in ensuring an effective grid integration of the PV system, since it is subject to requirements related not only to the variable source itself but also to its effects on the stability and operation of the electric grid. This paper proposes an enhanced interface for the grid connection of solar PV generation systems. The topology employed consists of a three-level cascaded Z-source inverter that allows the flexible, efficient and reliable generation of high quality electric power from the PV plant. A full detailed model is described and its control scheme is designed. The dynamic performance of the designed architecture is verified by computer simulations.     

Business opportunities and dynamic competition through distributed generation in primary electricity distribution networks

In this paper, for a real electricity distribution network, an assessment of business opportunities to invest in distributed generation (DG) is performed through a simulation based on a full representation of three medium voltage (12 kV) feeders. The three feeders representation includes 1062 sections of conductors with 13 different sizes. The economic assessment focuses on both, the incentives of the incumbent distribution company and those of a new entrant. The technical and economic impact on losses, reliability and voltage regulation in the network area are verified. The DG solution analyzed determines a business opportunity for new investors where end users are also benefited. This work calls in the debate on the need to reformulate the current regulation model on electricity distribution, by defining clear rules to incorporate DG to the existing network, and to enable any agent to develop the proposed business. DG success depends on the location of adequate sites to strategically establish few DG units being a substitute to network expansion.     

Distributed generation and demand response dispatch for a virtual power player energy and reserve provision

Recent changes in the operation and planning of power systems have been motivated by the introduction of Distributed Generation (DG) and Demand Response (DR) in the competitive electricity markets' environment, with deep concerns at the efficiency level. In this context, grid operators, market operators, utilities and consumers must adopt strategies and methods to take full advantage of demand response and distributed generation. This requires that all the involved players consider all the market opportunities, as the case of energy and reserve components of electricity markets.The present paper proposes a methodology which considers the joint dispatch of demand response and distributed generation in the context of a distribution network operated by a virtual power player. The resources' participation can be performed in both energy and reserve contexts. This methodology contemplates the probability of actually using the reserve and the distribution network constraints. Its application is illustrated in this paper using a 32-bus distribution network with 66 DG units and 218 consumers classified into 6 types of consumers.     

An energy management approach for renewable energy integration with power generation and water desalination

The share of the renewable energy sources (RES) in the global electricity market is substantially increasing as a result of the commitment of many countries to increase the contribution of the RES to their energy mix. However, the integration of RES in the electricity grid increases the complexity of the grid management due to the variability and the intermittent nature of these energy sources. Energy storage solutions such as batteries offer either short-term storage that is not sufficient or longer period storage that is significantly expensive. This paper introduces an energy management approach which can be applied in the case of power and desalinated water generation. The approach is based on mathematical optimization model which accounts for random variations in demands and energy supply. The approach allows using desalination plants as a deferrable load to mitigate for the variability of the renewable energy supply and water and/or electricity demands. A mathematical linear programming model is developed to show the applicability of this idea and its effectiveness in reducing the impact of the uncertainty in the environment. The model is solved for the real world case of Saudi Arabia. The optimal solution accounts for random variations in the renewable energy supply and water and/or electricity demands while minimizing the total costs for generating water and power.