Renewable Energy System Integration - Challenges & Measures for RE Penetration

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Renewable Energy System Integration - Challenges & Measures for RE Penetration º Renewable Energy System Integration - Challenges & Measures for RE Penetration - Final Report July 31th, 2019 I CONTENTS 1. Executive Summary .................................................................................................................................... 1 1.1 Background .......................................................................................................................................... 1 1.2 Objectives ........................................................................................................................................... 2 1.3 Measures ............................................................................................................................................. 3 1.4 Study Team Members ........................................................................................................................ 5 1.5 Results of survey ................................................................................................................................ 6 1.5.1 Demand and Supply Balance ...................................................................................................... 6 1.5.2 Network Enhancement ............................................................................................................... 7 1.5.3 Power Markets ............................................................................................................................. 7 1.5.4 Technical Issues ........................................................................................................................... 7 1.5.5 Political Issues ............................................................................................................................. 8 1.5.6 Innovation .................................................................................................................................... 8 1.5.7 Best Practice .............................................................................................................................. 10 1.6 Hidden Costs ..................................................................................................................................... 11 1.7 Recommendations ........................................................................................................................... 15 1.8 Need of Hidden (Grid-level) Cost Reduction .............................................................................. 15 1.9 Method of Hidden Cost Sharing .................................................................................................... 16 1.9.1 Evaluation of renewables’ role and location in the grid ..................................................... 16 1.9.2 Method of incremental cost for maintaining power quality due to RE integration ....... 16 1.10 Acronyms ........................................................................................................................................... 17 2. Survey Results .......................................................................................................................................... 18 2.1 Profiles of Power Systems ................................................................................................................. 18 2.1.1 Electrical Energy Trend ............................................................................................................. 18 2.1.2 Electrical Facilities .................................................................................................................... 19 2.1.3 Reliability .................................................................................................................................. 20 2.1.4 Power Systems Planning ........................................................................................................... 21 2.2 Current Status of RE Penetration and Future Prospect ................................................................ 30 2.2.1 Demand Forecast ..................................................................................................................... 30 2.2.2 Power Development Plans ....................................................................................................... 30 2.2.3 Transmission Development Plan ............................................................................................... 31 2.2.4 Integration of Renewables ..................................................................................................... 37 2.2.5 Power Market ............................................................................................................................ 37 2.3 Challenges on Technical Issues caused by RE Penetration ........................................................ 41 2.3.1 Output fluctuation .................................................................................................................. 41 2.3.2 Increase in uncertainty caused by DER .................................................................................. 43 2.3.3 Ancillary services .................................................................................................................... 43 2.3.4 Difficulty of demand prediction due to integration of DERs ................................................ 44 2.3.5 Challenges in the transmission network planning .............................................................. 45 2.3.6 Maintaining distribution network voltage ........................................................................... 46 2.3.7 Reverse Power Flow ............................................................................................................... 47 2.3.8 System inertia problem .......................................................................................................... 47 2.3.9 Complications with protection and control systems (PCS) ............................................. 48 2.3.10 Voltage Flicker ........................................................................................................................ 48 2.4 Challenges in Political Issues caused by RE Penetration .......................................................... 49 2.4.1 Subsidies ................................................................................................................................... 49 2.4.2 Market Design ......................................................................................................................... 49 I 2.4.3 Wide area coordination system operation .......................................................................... 50 2.4.4 Curtailment of VRE ................................................................................................................ 50 2.4.5 Connect and Manage .............................................................................................................. 51 2.4.6 Reuse, Recycle ........................................................................................................................ 53 2.5 Innovations ....................................................................................................................................... 54 2.5.1 R&D .......................................................................................................................................... 54 2.5.2 Required technologies and innovations for integration of VREs .................................... 55 2.6 Best Practices for mitigating challenges ...................................................................................... 57 2.6.1 Ongoing projects ..................................................................................................................... 57 2.6.2 Field tests ................................................................................................................................. 69 3. Hidden Costs and Cost Sharing ............................................................................................................. 74 3.1 Hidden Costs ...................................................................................................................................... 79 3.2 Cost Sharing ..................................................................................................................................... 84 4. References ............................................................................................................................................ 87 II 1. Executive Summary 1.1 Background A majority of Asian countries are now putting RE at the centre of future energy development plans. They have also started R&D in electricity storage technologies, mainly focusing on batteries, which will be an essential tool in order to mitigate RE’s output intermittency and maintain grid stability and power quality for customers. This fact is reflected in the outcome of the 2017 Issues Survey in the Asian region. RE integration is the top “Need to Action” issue and Energy Storage has jumped up to the most critical uncertainty. Some Asian countries have already encountered problems due to RE penetration and developed measures to mitigate them. It is also expected that most Asian countries will face new challenges due to greater penetration of RE in the near future. According to the IEA, RE interconnection levels are categorised into Phase 1 through Phase 4 depending on how much impact is experienced in the power system. Each power utility in Japan, together
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