The Integration of Solar Generation on a Power System: Operational and Economic Evaluation

Total Page:16

File Type:pdf, Size:1020Kb

The Integration of Solar Generation on a Power System: Operational and Economic Evaluation THE INTEGRATION OF SOLAR GENERATION ON A POWER SYSTEM: OPERATIONAL AND ECONOMIC EVALUATION by Marco Absalón Velástegui Andrade A Dissertation Submitted to the Faculty of Purdue University In Partial Fulfillment of the Requirements for the degree of Doctor of Philosophy Department of Agricultural Economics West Lafayette, Indiana December 2018 ii THE PURDUE UNIVERSITY GRADUATE SCHOOL STATEMENT OF COMMITTEE APPROVAL Dr. Paul V. Preckel, Chair Department of Agricultural Economics Dr. Douglas J. Gotham State Utility Forecasting Group Dr. Andrew L. Liu School of Industrial Engineering Dr. Otto C. Doering Department of Agricultural Economics Approved by: Dr. Nicole O. Widmar Head of the Graduate Program iii A dedication to my dad in heaven and family. iv ACKNOWLEDGMENTS I would like to thank my advisor, Dr. Paul Preckel for supporting and guiding me through this research process over the years. His mentorship and constant encouragement made this dissertation possible. I feel so grateful to have had him as my mentor and advisor. I would like to give a special thanks to the rest of my committee members. Dr. Douglas Gotham for his patience and expert advice; Dr. Andrew Liu and Dr. Otto Doering for their time and feedback that helped to improve my research. I am also thankful for my colleagues at the State Utility Forecasting Group (SUFG): Dr. David Nderitu, Mr. Timothy Phillips, Dr. Liwei Lu, Mrs. Fang Wu and Mrs. Darla Mize. Thank you all for your understanding and support provided through busy times. I would also like to thank Dr. Willian Hutzel from Purdue University and Mr. Larry Conrad from the Indianapolis Power & Light Company (IPL) for providing valuable data for this study. I would like thank my amazing parents and family for their love and always being there for me through the good and bad times. Finally, this long journey would not have been possible without the help and unconditional support of all my friends, especially Ángel Aguiar and his family, Ricardo Arias and his family, Nathália La Salvia, Regilene Lima, Mario Munive, Rándol Rodríguez, and Ulianova Vidal. v TABLE OF CONTENTS LIST OF TABLES ........................................................................................................... viii LIST OF FIGURES ........................................................................................................... ix ABSTRACT ........................................................................................................................ x CHAPTER 1. INTRODUCTION .................................................................................... 1 1.1 Introduction ............................................................................................................... 1 CHAPTER 2. LITERATURE REVIEW ......................................................................... 6 2.1 PV Solar power: A general review ............................................................................ 6 2.2 Integration of Utility-Scale PV Solar Generation on a Power System...................... 7 2.2.1 PV Solar Power System Optimal Operational Designs ................................... 8 2.2.2 PV Solar Generation and Power Generation System Characteristics ............ 12 2.2.3 Impacts of PV Solar Integration on a Power System .................................... 16 2.2.4 Background: PV Solar Capacity Value Calculation ...................................... 19 CHAPTER 3. METODOLOGY .................................................................................... 25 3.1 Data Collection, Analysis and Simulation .............................................................. 25 3.1.1 Indiana’s Conventional Generation Assets Data ........................................... 25 3.1.2 Simulated PV Solar Generation Data ............................................................ 25 3.1.2.1 Calibration of SAM Model ....................................................................... 26 3.1.2.2 Indiana’s PV Solar Generation Assets ...................................................... 29 3.1.2.3 Simulation of PV Solar Hourly Generation Data ..................................... 33 3.1.2.4 Conversion to 5-minute PV Solar Generation Data ................................. 34 3.1.3 Indiana’s Wind Assets and Generation Data ................................................. 41 3.1.4 Indiana’s Load Data ....................................................................................... 43 3.1.5 Wholesale Electricity Price Data ................................................................... 43 3.2 PV Solar Capacity within a Power System ............................................................. 44 3.2.1 Load Net of Renewables ................................................................................ 44 3.2.2 Scenarios Considered ..................................................................................... 45 3.2.3 Impacts of Integrating PV Solar on Other Generation Resources ................. 46 3.2.3.1 Impacts on Capacity ................................................................................. 47 3.2.3.2 Impacts on Capital Costs .......................................................................... 54 vi 3.2.3.3 Impacts on Energy .................................................................................... 56 3.2.3.4 Impacts on System Operations Costs ....................................................... 62 3.2.3.5 Estimation of PV Solar and PV Solar plus Wind Capacity Value ........... 63 CHAPTER 4. RESULTS ............................................................................................... 65 4.1 Comparison of Results for Three System Configurations ...................................... 65 4.1.1 Tilt and Azimuth Optimal Configuration Results ......................................... 65 4.1.2 Optimal Electricity Generation and Revenue Results ................................... 68 4.2 Results for Solar and Wind Additions Scenarios .................................................... 71 4.2.1 Capacity Impacts Results ............................................................................... 71 4.2.2 Energy Impacts Results ................................................................................. 76 4.2.3 Cost and Wholesale Electricity Rate Impact Results .................................... 79 4.3 Capacity Value of Solar .......................................................................................... 84 CHAPTER 5. DISCUSSION AND CONCLUSIONS .................................................. 89 5.1 Discussion ............................................................................................................... 89 5.1.1 Discussion of Optimal PV Solar System Configuration Results ................... 89 5.1.2 Discussion of the Base Case and Alternative Scenarios Results ................... 91 5.1.3 Discussion of the Solar Capacity Value Results ............................................ 95 5.2 Conclusions ............................................................................................................. 96 5.2.1 Conclusions of Using Various PV Solar System Configurations in Indiana . 97 5.2.2 Conclusions Regarding the Impacts of Integrating PV Solar into a Power System in Indiana ...................................................................................................... 99 5.2.3 Conclusions of the Solar Capacity Value Calculation Methodology .......... 101 5.3 Caveats .................................................................................................................. 102 5.3.1 Factors Affecting the LDC, Capacity Additions and Costs ......................... 103 5.3.2 Weather, Load and Solar Patterns ............................................................... 104 5.3.3 Factors Affecting Capacity Value Calculation ............................................ 104 5.3.4 Transmission Line Constraints .................................................................... 105 5.3.5 Potential Environmental Impacts ................................................................. 105 5.3.6 Geographic Diversity and Non-Interconnected Generation System ........... 105 5.4 Future Work .......................................................................................................... 106 REFERENCES ............................................................................................................... 108 vii APPENDIX A. GAMS CODE FOR INDIANA PIECEWISE LINEAR APROXIMATION .......................................................................................................... 114 APPENDIX B. GAMS CODE FOR INDIANA 5-MINUTE DATA SIMULATION ... 117 APPENDIX C. GAMS CODE FOR BASE CASE CAPACITY EXPASION AND COMMITMENT/DISPACTH MODEL ......................................................................... 121 VITA ............................................................................................................................... 132 viii LIST OF TABLES Table 3-1 Input Parameters by Array Type resulting from SAM model calibration* ...... 29 Table 3-2 Capacity and Number of Installed PV Generation Solar Projects in Indiana ... 30 Table 3-3 Weather Stations, Counties and Projects Capacity by Zone ............................ 31 Table 3-4 Installed PV solar capacity (kWac) by zone, module type and array type ....... 33 Table 3-5 Simulated Annual System Output (MWh) ....................................................... 34 Table 3-6 Indiana Installed Derated Capacity by Generation Type
Recommended publications
  • Environmental and Economic Benefits of Building Solar in California Quality Careers — Cleaner Lives
    Environmental and Economic Benefits of Building Solar in California Quality Careers — Cleaner Lives DONALD VIAL CENTER ON EMPLOYMENT IN THE GREEN ECONOMY Institute for Research on Labor and Employment University of California, Berkeley November 10, 2014 By Peter Philips, Ph.D. Professor of Economics, University of Utah Visiting Scholar, University of California, Berkeley, Institute for Research on Labor and Employment Peter Philips | Donald Vial Center on Employment in the Green Economy | November 2014 1 2 Environmental and Economic Benefits of Building Solar in California: Quality Careers—Cleaner Lives Environmental and Economic Benefits of Building Solar in California Quality Careers — Cleaner Lives DONALD VIAL CENTER ON EMPLOYMENT IN THE GREEN ECONOMY Institute for Research on Labor and Employment University of California, Berkeley November 10, 2014 By Peter Philips, Ph.D. Professor of Economics, University of Utah Visiting Scholar, University of California, Berkeley, Institute for Research on Labor and Employment Peter Philips | Donald Vial Center on Employment in the Green Economy | November 2014 3 About the Author Peter Philips (B.A. Pomona College, M.A., Ph.D. Stanford University) is a Professor of Economics and former Chair of the Economics Department at the University of Utah. Philips is a leading economic expert on the U.S. construction labor market. He has published widely on the topic and has testified as an expert in the U.S. Court of Federal Claims, served as an expert for the U.S. Justice Department in litigation concerning the Davis-Bacon Act (the federal prevailing wage law), and presented testimony to state legislative committees in Ohio, Indiana, Kansas, Oklahoma, New Mexico, Utah, Kentucky, Connecticut, and California regarding the regulations of construction labor markets.
    [Show full text]
  • Solar Thermal – Concentrated Solar Power
    Potential for Renewable Energy in the San Diego Region August 2005 Appendix E: Solar Thermal – Concentrated Solar Power This appendix was prepared by the National Renewable Energy Laboratory and is included in this report with their permission. The figure and chart numbers have been changed to be consistent with the number system of this report. NREL Report - Concentrating Solar Power (CSP) Central Station Solar Concentrating Solar Power Southern California is potentially the best location in the world for the development of large- scale solar power plants. The Mojave Desert and Imperial Valley have some of the best solar resources in the world. The correlation between electric energy demand and solar output is strong during the summer months when peak power demand occurs. This region is unique for the proximity of such an excellent solar resource to a highly populated residential and commercial region. Furthermore, the extensive AC and DC transmission network running through the region enables solar electric generation to be distributed to major load centers throughout the state. As a result of these factors and state and utility policy, the world’s largest and most successful solar electric power facilities are sited in Southern California and sell power to Southern California Edison (SCE). Concentrating Solar Power Technologies Concentrating solar power (CSP) technologies, sometimes referred to as solar thermal electric technologies, have been developed for power generation applications. Historically, the focus has been on the development of cost-effective solar technologies for large (100 MWe or greater) central power plant applications. The U.S. Department of Energy’s (DOE) Solar R&D program focuses on the development of technologies suitable for meeting the power requirements of utilities in the southwestern United States.
    [Show full text]
  • Incorporating Renewables Into the Electric Grid: Expanding Opportunities for Smart Markets and Energy Storage
    INCORPORATING RENEWABLES INTO THE ELECTRIC GRID: EXPANDING OPPORTUNITIES FOR SMART MARKETS AND ENERGY STORAGE June 2016 Contents Executive Summary ....................................................................................................................................... 2 Introduction .................................................................................................................................................. 5 I. Technical and Economic Considerations in Renewable Integration .......................................................... 7 Characteristics of a Grid with High Levels of Variable Energy Resources ................................................. 7 Technical Feasibility and Cost of Integration .......................................................................................... 12 II. Evidence on the Cost of Integrating Variable Renewable Generation ................................................... 15 Current and Historical Ancillary Service Costs ........................................................................................ 15 Model Estimates of the Cost of Renewable Integration ......................................................................... 17 Evidence from Ancillary Service Markets................................................................................................ 18 Effect of variable generation on expected day-ahead regulation mileage......................................... 19 Effect of variable generation on actual regulation mileage ..............................................................
    [Show full text]
  • Property Value Impact Study
    www.cohnreznick.com PROPERTY VALUE IMPACT STUDY ADJACENT PROPERTY VALUES SOLAR IMPACT STUDY A STUDY OF EIGHT EXISTING SOLAR FACILITIES Located in Lapeer County, Michigan; Chisago County, Minnesota; Marion County, Indiana; LaSalle County, Illinois; Bladen, Cumberland, Rutherford and Wilson Counties, North Carolina; and Isle of Wight County, Virginia PREPARED FOR: SUBMITTED BY: Orion Renewable Energy Group CohnReznick, LLP 155 Grand Avenue, Suite 706 Valuation Advisory Services Oakland, CA 94612 200 S Wacker Drive, Suite 2600 Chicago, IL 60606 (312) 508-5900 Andrew R. Lines, MAI June 10, 2020 Patricia L. McGarr, MAI, CRE, FRICS Prepared for Orion Renewable Energy Group Page | 2 EXECUTIVE SUMMARY The purpose of this real estate impact study is to determine whether existing solar farm uses have had any measurable impact on the value of adjacent properties. According to the Solar Energy Industries Association (SEIA) statistics, utility-scale, solar photovoltaic (PV) installations over the next four years, through 2024, represent the largest percentage of deployment of solar PV installations for the United States in total and on an annual basis. The total installed solar capacity increased to 71.3 GW as of third quarter 2019, and the total installed capacity is expected to top 100 gigawatts (“GW”) by 2021. With the increase of utility-scale solar installations across the country, solar projects have become a common and understood feature of the landscape and will continue to do so with the projected additional capacity to come online in the coming years. The proposed solar energy site is located in Cheboygan County, Michigan, with a weighted-average Overall NCCPI1 of 32.3, reflecting a rating classification of moderately low inherent productivity where conditions are generally not favorable for crop production, and none of the site is considered prime farmland in its current state.
    [Show full text]
  • The Private and Public Economics of Renewable Electricity Generation
    NBER WORKING PAPER SERIES THE PRIVATE AND PUBLIC ECONOMICS OF RENEWABLE ELECTRICITY GENERATION Severin Borenstein Working Paper 17695 http://www.nber.org/papers/w17695 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 December 2011 I am grateful to Judd Boomhower for excellent research assistance. I also benefited from the comments of David Autor, Duncan Callaway, Lucas Davis, Meredith Fowlie, Michael Greenstone, Bill Hogan, Chad Jones, Paul Joskow, Chris Knittel, John List, Karen Notsund, Richard Schmalensee, and Tim Taylor. This research was supported in part under a research contract from the California Energy Commission to the Energy Institute at Haas. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2011 by Severin Borenstein. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Private and Public Economics of Renewable Electricity Generation Severin Borenstein NBER Working Paper No. 17695 December 2011 JEL No. L94,Q42,Q48 ABSTRACT Generating electricity from renewable sources is more expensive than conventional approaches, but reduces pollution externalities. Analyzing the tradeoff is much more challenging than often presumed, because the value of electricity is extremely dependent on the time and location at which it is produced, which is not very controllable with some renewables, such as wind and solar.
    [Show full text]
  • Energy Infrastructure Update December 2014
    Office of Energy Projects Energy Infrastructure Update For December 2014 Natural Gas Highlights • Transco received authorization to construct and operate its Leidy Southeast Expansion Project which will provide 525 MMcf/d of capacity from Transco’s Leidy Line in PA to delivery points as far south as AL. • ANR received authorization to construct and operate its Sulphur Springs Compression Project which will provide 133.6 MMcf/d of capacity on ANR’s Lebanon Lateral in IN and OH. • Constitution Pipeline and Iroquois received authorization to construct and operate the Constitution Pipeline and Wright Interconnection Projects. These projects will provide 650 MMcf/d of capacity from receipt points in Susquehanna County, PA to the proposed Wright interconnection with Iroquois in Schoharie County, NY. • TETCO received authorization to construct and operate its OPEN Project. This project will provide 550 MMcf/d of capacity from receipt points in OH to delivery points in the Gulf Coast area. • Columbia received authorization to construct and operate its East Side Expansion Project. This project will provide 312 MMcf/d of capacity for five shippers on Columbia’s existing system in PA, NJ, NY, and MD. • TETCO received authorization to construct and operate its U2GC Project which will provide 425 MMcf/d of capacity from receipt points in PA to an interconnection with Panhandle Eastern Pipeline near Gas City, IN. • Corpus Christi LNG received authorization to construct and operate an LNG terminal in San Patricio and Nueces Counties, TX, with the capacity to export 2,140 MMcf/d and the capacity to import 400 MMcf/d. Corpus Christi Pipeline received authorization to construct and operate pipeline facilities to provide 2,250 MMcf/d of capacity and bi- directional flow to the proposed Corpus Christi LNG terminal.
    [Show full text]
  • Background Report Prepared by Arizona State University NINETY-NINTH ARIZONA TOWN HALL
    Arizona’s Energy Future 99th Arizona Town Hall November 6 - 9, 2011 Background Report Prepared by Arizona State University NINETY-NINTH ARIZONA TOWN HALL PREMIER PARTNER CONTRIBUTING PARTNER COLLABORATING PARTNERS SUPPORTING PARTNERS CIVIC PARTNERS CORE Construction Kennedy Partners Ryley, Carlock & Applewhite Sundt Construction One East Camelback, Suite 530, Phoenix, Arizona 85012 Phone: 602.252.9600 Fax: 602.252.6189 Website: www.aztownhall.org Email: [email protected] ARIZONA’S ENERGY FUTURE September 2011 We thank you for making the commitment to participate in the 99th Arizona Town Hall to be held at the Grand Canyon on November 6-9, 2011. You will be discussing and developing consensus with fellow Arizonans on the future of energy in Arizona. An essential element to the success of these consensus-driven discussions is this background report that is provided to all participants before the Town Hall convenes. As they have so often done for past Arizona Town Halls, Arizona State University has prepared a detailed and informative report that will provide a unique and unparalleled resource for your Town Hall panel sessions. Special thanks go to editors Clark Miller and Sharlissa Moore of the Consortium for Science, Policy, and Outcomes at ASU for spearheading this effort and marshaling many talented professionals to write individual chapters. For sharing their wealth of knowledge and professional talents, our thanks go to the many authors who contributed to the report. Our deepest gratitude also goes to University Vice President and Dean of the College of Public Programs for ASU, Debra Friedman, and Director of the School of Public Affairs for ASU, Jonathan Koppell, who made great efforts to ensure that ASU could provide this type of resource to Arizona.
    [Show full text]
  • Guide to Going Solar Now Featuring Solar Water Heating
    Guide to Going Solar Now featuring solar water heating Table of Contents California: Leading the Way to a Brighter Future ......................2 � How Solar Generation Works .......................................................4 � A Closer Look: Types of PV Panels and Inverters ......................5 � Net Energy Metering .....................................................................6 � Solar Generation System Costs ...................................................9 � Solar Water Heating ....................................................................12 � Three Steps to Go Solar! .............................................................14 � Glossary of Commonly Used Terms ..........................................19 � How to Make Smart Choices When Going Solar ......................23 � Comparing Contractor Bids .......................................................24 � This guide is for utility customers of Pacific Gas and Electric Companyonly. Get information about solar in the San Diego Gas & Electric Company and Southern California Edison service territories at gosolarcalifornia.com. Tap the state’s most abundant natural resource—the sun. California: Leading the Way to a Brighter Future The California Solar Initiative Since its launch in 2007, the California Solar Initiative (CSI) has been helping make clean and reliable energy from the sun even more accessible in a state that has long been a national leader in environmental stewardship. With assistance from rebates provided by the CSI Program, more than 2.3 gigawatts of solar generation have been installed since 2007; and many of your friends, neighbors and relatives now tap into the state’s most Did You Know? abundant natural resource—the sun—for their power. Solar electricity is Due to overwhelming response in PG&E’s service area, program incentives no different from the are no longer available. Federal tax incentives and/or other credits may electricity delivered by still be available to help reduce the cost associated with installing a solar your local utility.
    [Show full text]
  • Environmental Assessment
    Environmental Assessment Turning Point Solar Generating Project Noble County, Ohio Turning Point Solar LLC U.S. Department of Agriculture Rural Utilities Service (RUS) Please submit questions or written comments to: Lauren McGee Environmental Scientist USDA/RUS 1400 Independence Ave., SW Mail Stop 1571 Washington, DC 20250-1571 Phone: (202) 720-1482 Fax: (202) 690-0649 Email: [email protected] ENVIRONMENTAL ASSESSMENT TURNING POINT SOLAR PROJECT Brookfield Township, Noble County, Ohio Prepared for: U.S. Department of Agriculture Rural Utilities Service January 2012 Prepared by: URS Corporation Cleveland, Ohio Rural Utilities Service Turning Point Solar Project TABLE OF CONTENTS Page No. EXECUTIVE SUMMARY.....................................................................................................ES-1 1.0 PURPOSE AND NEED FOR THE PROPOSED ACTION.............................................1-1 1.1 Introduction ...............................................................................................................1-1 1.2 Proposed Action.........................................................................................................1-3 1.3 Applicant’s Purpose and Need ..................................................................................1-5 2.0 ALTERNATIVES ANALYSIS AND DESCRIPTION OF PROPOSED ACTION......................................................................................................................................2-1 2.1 Project Alternatives That Meet the Purpose and Need...............................................2-1
    [Show full text]
  • Renewable Electricity Generation and Storage Technologies Futures Study
    Volume 2 of 4 Renewable Electricity Renewable Electricity Generation and Storage Technologies Futures Study Volume 1 Volume 2 Volume 3 Volume 4 PDF PDF PDF PDF NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. Renewable Electricity Futures Study Edited By Hand, M.M. Baldwin, S. DeMeo, E. National Renewable U.S. Department of Renewable Energy Energy Laboratory Energy Consulting Services, Inc. Reilly, J.M. Mai, T. Arent, D. Massachusetts Institute of National Renewable Joint Institute for Strategic Technology Energy Laboratory Energy Analysis Porro, G. Meshek, M. Sandor, D. National Renewable National Renewable National Renewable Energy Laboratory Energy Laboratory Energy Laboratory Suggested Citations Renewable Electricity Futures Study (Entire Report) National Renewable Energy Laboratory. (2012). Renewable Electricity Futures Study. Hand, M.M.; Baldwin, S.; DeMeo, E.; Reilly, J.M.; Mai, T.; Arent, D.; Porro, G.; Meshek, M.; Sandor, D. eds. 4 vols. NREL/TP-6A20-52409. Golden, CO: National Renewable Energy Laboratory. http://www.nrel.gov/analysis/re_futures/. Volume 2: Renewable Electricity Generation and Storage Technologies Augustine, C.; Bain, R.; Chapman, J.; Denholm, P.; Drury, E.; Hall, D.G.; Lantz, E.; Margolis, R.; Thresher, R.; Sandor, D.; Bishop, N.A.; Brown, S.R.; Cada, G.F.; Felker, F.; Fernandez, S.J.; Goodrich, A.C.; Hagerman, G.; Heath, G.; O’Neil, S.; Paquette, J.; Tegen, S.; Young, K. (2012). Renewable Electricity Generation and Storage Technologies. Vol 2. of Renewable Electricity Futures Study. NREL/TP-6A20-52409-2. Golden, CO: National Renewable Energy Laboratory. Chapter 6.
    [Show full text]
  • Best Practices Handbook for the Collection and Use of Solar Resource Data for Solar Energy Applications: Second Edition
    Best Practices Handbook for the Collection and Use of Solar Resource Data for Solar Energy Applications: Second Edition Edited by Manajit Sengupta,1 Aron Habte,1 Christian Gueymard,2 Stefan Wilbert,3 Dave Renné,4 and Thomas Stoffel5 1 National Renewable Energy Laboratory 2 Solar Consulting Services 3 German Aerospace Center (DLR) 4 Dave Renné Renewables, LLC 5 Solar Resource Solutions, LLC This update was prepared in collaboration with the International Energy Agency Solar Heating and Cooling Programme: Task 46 NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency & Renewable Energy Operated by the Alliance for Sustainable Energy, LLC This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications. Technical Report NREL/TP-5D00-68886 December 2017 Contract No. DE-AC36-08GO28308 Best Practices Handbook for the Collection and Use of Solar Resource Data for Solar Energy Applications: Second Edition Edited by Manajit Sengupta,1 Aron Habte,1 Christian Gueymard,2 Stefan Wilbert,3 Dave Renné,4 and Thomas Stoffel5 1 National Renewable Energy Laboratory 2 Solar Consulting Services 3 German Aerospace Center (DLR) 4 Dave Renné Renewables, LLC 5 Solar Resource Solutions, LLC Prepared under Task No. SETP.10304.28.01.10 NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency & Renewable Energy Operated by the Alliance for Sustainable Energy, LLC This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications. National Renewable Energy Laboratory Technical Report 15013 Denver West Parkway NREL/TP-5D00-68886 Golden, CO 80401 December 2017 303-275-3000 • www.nrel.gov Contract No.
    [Show full text]
  • Estimating the Cost of Solar Generation Uncertainty and the Impact of Collocated Energy Storage: the Case of Korea
    sustainability Article Estimating the Cost of Solar Generation Uncertainty and the Impact of Collocated Energy Storage: The Case of Korea Wooyoung Jeon 1 and Chul-Yong Lee 2,* 1 Department of Economics, Chonnam National University, 77, Yongbong-ro, Buk-gu, Kwangju 61186, Korea; [email protected] 2 School of Business, Pusan National University, 2 Busandaehak-ro 63beon-gil, Geumjeong-gu, Busan 46241, Korea * Correspondence: [email protected]; Tel.: +82-51-510-2568 Received: 29 January 2019; Accepted: 28 February 2019; Published: 6 March 2019 Abstract: As a major option for reducing greenhouse gas emission and sustainable development, renewable generation is rapidly expanding in the power sector. However, the variability and uncertainty of renewable generation undermine the reliability of the power system, requiring additional reserve capacities. This study estimates the costs induced by additional reserve capacities to reduce the uncertainty of solar generation in the Korean power system and analyzes the effectiveness of the Energy Storage System (ESS) in reducing these costs, using the stochastic form of multi-period security-constraint optimal power flow. To determine the input of stochastic solar generation, an ARMAX model and Monte Carlo method are applied for representative solar farms. The results indicate solar power generation by 2029 would increase the required reserve by 56.2% over the current level but coupling a 10 GWh of lithium-ion ESS would reduce it by 61.1% compared to increased reserve level for 2029. The operating cost reduction (benefit) by ESS would be 80.8% higher in 2029 compared to the current level and cover 89.9% of its installation cost.
    [Show full text]