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Powering Europe: Wind Energy and the Electricity Grid Electricity the and Energy Wind Europe: Powering Powering Europe: wind energy and the electricity grid www.ewea.org About EWEA Powering Europe: EWEA is the voice of the wind industry, actively promoting the utilisation of wind power in wind energy and the electricity grid Europe and worldwide. It now has over 650 members from almost 60 countries including manufacturers with a 90% share of the world wind power market, plus component suppliers, research institutes, national wind and renewables associations, developers, electricity providers, finance and insurance companies and consultants. November 2010 80 Rue d’Arlon | B-1040 Brussels Tel: +32 2 213 18 11 - Fax: +32 2 213 18 90 E-mail: [email protected] A report by the European Wind Energy Association Powering Europe: wind energy and the electricity grid Main authors (Vols 1-5): Frans Van Hulle (XPwind), Nicolas Fichaux (European Wind Energy Association - EWEA) Main authors (Vol 6): Anne-Franziska Sinner (Pöyry), Poul Erik Morthorst (Pöyry), Jesper Munksgaard (Pöyry), Sudeshna Ray (Pöyry) Contributing authors: Christian Kjaer (EWEA), Justin Wilkes (EWEA), Paul Wilczek (EWEA), Glória Rodrigues (EWEA), Athanasia Arapogianni (EWEA) Revision and editing: Julian Scola (EWEA), Sarah Azau (EWEA), Zoë Casey (EWEA), Jan De Decker and Achim Woyte (3E), EWEA’s Large Scale Integration Working Group Project coordinators: Raffaella Bianchin (EWEA), Sarah Azau (EWEA) Design: www.megaluna.be Print: www.artoos.be Cover photo: Getty Published in November 2010   CONTENTS chapter1 Introduction:a Europeanvision 5 2 Connecting wind power to the grid 55 2.1 Problems with grid code requirements 1 Introduction 6 for wind power 56 2 Turning the energy challenge 2.2 An overview of the present grid code 57 into a competitive advantage 8 requirements for wind power 2.3 Two-step process for grid code 2.1 Wind power and European electricity 9 harmonisation in Europe 60 2.2 Wind power in the system 11 2.3 All power sources are fallible 11 3 Summary 62 3 Main challenges and issues of integration 13 chapter3  powersystemoperations Europe: in power wind of Integration 4 the facts 14 withlargeamountsofwindpower 65 4.1 Wind generation and wind plants: the essentials 15 1 Introduction 66 4.2 Power system operations with large amounts of wind power 16 2 Balancing demand, conventional 4.3 Upgrading electricity networks – challenges generation and wind power 67 and solutions 17 2.1 Introduction 67 4.4 Electricity market design 19 2.2 Effect of wind power on scheduling of 4.5 The merit order effect of large-scale reserves 68 wind integration 20 2.3 Short-term forecasting to support system balancing 70 5 Roles and responsibilities 22 2.4 Additional balancing costs 71 6 European renewable energy grid vision 3 Improved wind power management 73 2010-2050 28 4 Ways of enhancing wind power integration 76 chapter2 5 Wind power’s contribution to firm power 79 :Windgenerationandwindplants 5.1 Security of supply and system adequacy 79 theessentials 35 5.2 Capacity credit is the measure for firm 1 Wind generation and wind farms – wind power 80 the essentials 36 6 National and European integration studies 1.1 Wind power plants 36 and experiences 83 1.2 Variability of wind power production 42 6.1 Germany 84 1.3 Variability and predictability 6.2 Nordic region 85 of wind power production 48 6.3 Denmark 86 1.4 Impacts of large-scale wind power 6.5 Ireland 88 integration on electricity systems 53 6.6 Netherlands 89 6.7 European Wind Integration Study 89 2 7 Annex: principles of power balancing 3 Developments in the European electricity in the system 92 market 123 3.1 Liberalised national markets 123 chapter4 3.2 European integration assisted by Upgradingelectricitynetworks– interconnection 124 3.3 Legal framework for further liberalisation challengesandsolutions 95 of the European electricity market 125 1 Drivers and barriers for network upgrades 96 4 Wind power in the European internal electricity market 126 2 Immediate opportunities for upgrade: 4.1 Current market rules in EU Member optimal use of the network 99 States 126 3 Longer term improvements to European 4.2 Economic benefits of proper market rules for wind power integration in Europe 127 transmission planning 101 3.1 Recommendations from European studies 101 5 Summary 128 4 Offshore grids 106 chapter6 4.1 Drivers and stepping stones 106 Technical issues 108 themeritordereffectoflarge-scale 4.2 Policy issues 110 windintegration 131 4.3 4.4 Regulatory aspects 110 4.5 Planning 110 1 Background 132 5 Costs of transmission upgrades and who 2 Introduction 134 pays for what 112 2.1 Summary of literature survey 136 5.1 Cost estimates 112 138 5.2 Allocating grid infrastructure costs 113 3 Summary of findings 6 More active distribution networks 114 4 Methodology 140 4.1 Approach 140 7 A holistic view of future network 4.2 Modelling 142 development: smart grids 116 5 Analysis 144 8 Summary 117 5.1 Modelling results 144 5.2 Sensitivities 155 chapter5 6 Conclusion 162 electricitymarketdesign 119 7 Annex 164 1 Introduction 120 7.1 Assumptions in the model 164 2 Barriers to integrating wind power into 7.2 Model description 167 the power market 121 References, glossary and abbreviations 171 3   Photo: Thinkstock INtrODUctION:aeUrOpeaNVISION 1 Photo: iStock INtroduction In order to achieve EU renewable energy and CO2 emis- wind power faces barriers not because of the wind’s sion reduction targets, significant amounts of wind en- variability, but because of inadequate infrastructure ergy need to be integrated into Europe’s electricity sys- and interconnection coupled with electricity markets tem. This report will analyse the technical, economic where competition is neither effective nor fair, with and regulatory issues that need to be addressed in new technologies threatening traditional ways of think- order to do so through a review of the available lit- ing and doing. Already today, it is generally considered erature, and examine how Europe can move towards that wind energy can meet up to 20% of electricity de- a more secure energy future through increased wind mand on a large electricity network without posing any power production. serious technical or practical problems1. The report’s main conclusions are that the capacity When wind power penetration levels are low, grid op- of the European power systems to absorb significant eration will not be affected to any significant extent. amounts of wind power is determined more by eco- Today wind power supplies more than 5% of overall EU nomics and regulatory frameworks than by technical electricity demand, but there are large regional and or practical constraints. Larger scale penetration of national differences. The control methods and backup 1 See IEA Task 25 final report on “Design and operation of power systems with large amounts of wind power”: http://ieawind.org/AnnexXXV.html 6 Powering Europe: wind energy and the electricity grid available for dealing with variable demand and supply be learned from countries with growing experience, as that are already in place are more than adequate for outlined in this report. However, it is important that dealing with wind power supplying up to 20% of elec- stakeholders, policy makers and regulators in emerg- tricity demand, depending on the specific system and ing markets realise that the issues that TSOs in Spain, geographical distribution. For higher penetration lev- Denmark and Germany are faced with will not become els, changes may be needed in power systems and a problem for them until much larger amounts of wind the way they are operated to accommodate more wind power are connected to their national grids. energy. The issues related to wind power and grid integration Experience with wind power in areas of Spain, Den- mentioned in this report are based on a detailed over- mark, and Germany that have large amounts of wind view of best practices, past experiences, descriptions energy in the system, shows that the question as to and references to technical and economic assess- whether there is a potential upper limit for renewable ments. The report collects and presents detailed facts penetration into the existing grids will be an econom- and results, published in specialised literature, as well ic and regulatory issue, rather than a technical one. as contributions from experts and actors in the sector. For those areas of Europe where wind power devel- The aim is to provide a useful framework for the cur- opment is still in its initial stages, many lessons can rent debates on integrating wind power into the grid. chApter 1 INTRODUCTION: A EUrOPEANVISION 7 Photo: iStock TurningtheeNergychalleNge into acOmpetItiveaDVaNtage Europe is importing 54% of its energy (2006), and decarbonise its energy mix in order to mitigate the risk that share is likely to increase substantially in the to the climate, and use its indigenous renewable re- next two decades unless a major shift occurs in Eu- sources to mitigate the risk to its energy supply. rope’s supply strategy 2. Most of Europe’s oil comes from the Middle East and the larger share of its gas Without reliable, sustainable, and reasonably priced from just three countries: Russia, Algeria and Norway. energy there can be no sustainable long term growth. The European economy relies on the availability of It is essential that Europe develops its own internal hydrocarbons at affordable prices. Europe is running energy resources as far as possible, and that it strong- out of indigenous fossil fuels at a time when fossil ly promotes energy efficiency. Europe has always led fuel prices are high, as is the volatility of those prices.
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