Transition Towards a 100% Renewable Energy System by 2050 for Ukraine 2 Michael Childź [email protected] Agenda

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Transition Towards a 100% Renewable Energy System by 2050 for Ukraine 2 Michael Childź Michael.Child@Lut.Fi Agenda TRANSITION TOWARDS A 100% RENEWABLE ENERGY SYSTEM BY 2050 FOR UKRAINE Michael Child, Dmitrii Bogdanov and Christian Breyer Lappeenranta University of Technology, Finland Hans-Josef Fell, Komila Nabiyeva Energy Watch Group, Germany Yuliia Oharenko, Oksana Aliieva Heinrich Böll Foundation Kiev, Ukraine NeoCarbon Energy 7th Researchers’ Seminar, January 24-25, 2017 Highlights ¾ A 100% renewable energy systems can provide reliable, sustainable energy services before 2050 ¾ A 100% renewable energy system is lower in cost than the current system based on nuclear and fossil fuels ¾ A well-designed 100% renewable energy system with energy storage solutions can provide power system stability, baseload power, and peak following power in all 8760 hours of the year Transition towards a 100% renewable energy system by 2050 for Ukraine 2 Michael ChildŹ [email protected] Agenda Motivation Methodology and Data Results Summary Transition towards a 100% renewable energy system by 2050 for Ukraine 3 Michael ChildŹ [email protected] Motivation ¾ COP21 set out a framework for action aimed at stabilising global GHGs ¾ Past Ukrainian reductions are due to drops in population, GDP and living standards ¾ Improvements will result in increased Total estimated installed capacities (net) in 2015 in Ukraine. energy use, especially electricity ¾ Improvements must be made in a sustainable manner ¾ What could the transition pathway to a 100% RE power system by 2050 look like for Ukraine? Total projected installed capacities (net) in 2050 in Ukraine based on 100% RE. Transition towards a 100% renewable energy system by 2050 for Ukraine 4 Michael ChildŹ [email protected] Agenda Motivation Methodology and Data Results Summary Transition towards a 100% renewable energy system by 2050 for Ukraine 5 Michael ChildŹ [email protected] Methodology Overview ¾ Energy transition pathway from 2015 nuclear and fossil based system to 100% RE by 2050 ¾ Transition in 5 year time steps ¾ No more than 20% growth in RE installed capacities compared to total power generation ¾ No new nuclear or fossil based thermal power plants installed after 2015 ¾ Least cost RE power plant mix replaces phased out nuclear and fossil power plants ¾ Energy system modelled to meet increasing electricity demand for each time step ¾ Research Objective: Find the least cost energy transition pathway for Ukraine. Total Electricity Consumption (TWh) 2015 158 2020 167 2025 175 2030 184 2035 194 2040 204 2045 214 Left: Aggregated load profile for Ukraine 2050 226 Right: Estimated electricity consumption of Ukraine from 2015 to 2050 Transition towards a 100% renewable energy system by 2050 for Ukraine 6 Michael ChildŹ [email protected] Methodology – Modelling Objective ¾ Definition of an optimally structured energy system based on 100% RE supply ¾ optimal set of technologies, best adapted to the availability of the regions’ resources, ¾ optimal mix of capacities for all technologies, ¾ optimal operation modes for every element of the energy system, ¾ least cost energy supply for the given constraints. Input data LUT Energy model, key features ¾ historical weather data for: solar irradiation, wind ¾ linear optimization model speed and hydro precipitation ¾ hourly temporal resolution ¾ available sustainable resources for biomass and geothermal energy ¾ 0.45° x 0.45° spatial resolution ¾ synthesized power load data ¾ multi-node approach ¾ gas and water desalination demand ¾ flexibility and expandability ¾ efficiency/ yield characteristics of RE plants ¾ efficiency of energy conversion processes ¾ capex, opex, lifetime for all energy resources ¾ min and max capacity limits for all RE resources ¾ nodes and interconnections configuration Role of solar PV in Global Energy Transition Scenarios 7 Christian Breyer Ź [email protected] Methodology Full system Renewable energy sources • PV rooftop • PV ground-mounted • PV single-axis tracking • Wind onshore/ offshore • Hydro run-of-river • Hydro dam • Geothermal energy • CSP • Waste-to-energy • Biogas • Biomass Electricity transmission • node-internal AC transmission • interconnected by HVDC lines Storage options • Batteries • Pumped hydro storage • Adiabatic compressed air storage • Thermal energy storage, Power-to-Heat • Gas storage based on Power-to-Gas Energy Demand • Water electrolysis • Electricity • Methanation • Industrial Gas • CO2 from air Role• ofGas solar storage PV in Global Energy Transition Scenarios 8 Christian Breyer Ź [email protected] Agenda Motivation Methodology and Data Results Summary Transition towards a 100% renewable energy system by 2050 for Ukraine 9 Michael ChildŹ [email protected] Results Power Sector Mix Installed capacities of different power plants required from 2015 to 2050 Electricity production of the different power plant categories from 2015 to 2050 ¾ Ukraine can achieve a 86% RE power system by 2035 and 100% RE by 2050 ¾ Coal power eliminated by 2035 and nuclear power by 2050 ¾ By 2050, PV dominates with 80 GW (44% of electricity generation) and wind power plants with 32 GW (38%) ¾ GT plants to utilize synthetic natural gas produced via methanation units added in 2035 ¾ No major risk of stranded investments in gas turbines or gas infrastructure ¾ New wind installations peak in 2035 – PV single-axis tracking dominates until 2050 Transition towards a 100% renewable energy system by 2050 for Ukraine 10 Michael ChildŹ [email protected] Results Storage Mix Additional storage capacity required from 2015 to 2050 Ratio of storage output to electricity demand from 2015 to 2050 ¾ Higher capacity of gas storage required after 2035 ¾ Energy storage becomes cost competitive by 2035 – and is a cheaper option to balance the power system compared to fossil powered thermal plants ¾ By 2050, batteries provide a total output of about 38 TWhel ¾ Accounts for about 17 % of the total electricity demand ¾ Between 2030 and 2050, battery full charge cycles required are between 250 and 300 cycles a year ¾ Some of this could be provided by EV batteries without additional cost Transition towards a 100% renewable energy system by 2050 for Ukraine 11 Michael ChildŹ [email protected] Results Summary of key capacities required for the integrated energy transition 2015 2020 2025 2030 2035 2040 2045 2050 PV single-axis tracking GWp 0 0 0 15.4 15.4 15.4 15.4 15.4 PV optimally tilted GWp 0.9 0.9 0.9 0.9 2.7 3.8 3.8 28.5 PV Prosumers GWp 0 0 0 1.8 9.4 15.3 29.8 36.5 Wind power plants GWe 0.5 0.5 17.1 23.1 26.6 27.4 28.5 32.3 Geothermal GWe 0 0 0 0.1 0.1 0.1 0.1 0.1 Battery storage GWhe 0 0 0 12.8 32.1 44.1 84.4 139.3 PHS storage GWhe 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5 A-CAES storage GWhe 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 PtG electrolyser input GWe 0 0 0 0 0 0 0.2 7.8 Grid gas storage GWhgas 90 901 1012 1012 1568 1710 2791 18840 ¾ Solar PV + Battery dominates the power sector after 2040 ¾ Installation of wind power plants stabilizes from 2035 onwards ¾ Batteries provide the least cost short-term storage for the Ukraine power system ¾ Grid gas storage provides a significant source of seasonal storage after 2045 Transition towards a 100% renewable energy system by 2050 for Ukraine 12 Michael ChildŹ [email protected] Results Hourly results for January 9-15 Transition towards a 100% renewable energy system by 2050 for Ukraine 13 Michael ChildŹ [email protected] Results Hourly results for June 23-29 Transition towards a 100% renewable energy system by 2050 for Ukraine 14 Michael ChildŹ [email protected] Results Carbon dioxide emissions Key insights: ¾ Carbon emissions fall significantly after phase out of coal-based power generation ¾ Further reductions occur with replacement of imported natural gas with domestically produced methane ¾ Goals related to increased industrial output, higher population and higher GDP can be achieved in a low carbon world through use of renewable energy and increased efficiency Transition towards a 100% renewable energy system by 2050 for Ukraine 15 Michael ChildŹ [email protected] Results LCOE of the resulting optimal power mix Detailed contribution of components to the total LCOE from 2015 to 2050 Relative contribution of financial components to the total LCOE from 2015 to 2050 ¾ Energy transition Ź decrease system LCOE to 60 €/MWh by 2040 and 54 €/MWh by 2050 ¾ Batteries and PV single-axis largest contributor to LCOE by 2050 ¾ PV single-axis + Battery storage more cost competitive than wind power plants, but wind is an excellent resource during the winter half year ¾ CO2 costs disappear by 2035 ¾ Transition to a 100% RE power system Ź Capex contributes up to 80% towards the LCOE Transition towards a 100% renewable energy system by 2050 for Ukraine 16 Michael ChildŹ [email protected] Cost comparison of ’cleantech’ solutions Preliminary NCE results clearly indicate 100% RE systems cost about 55-70 €/MWh for 2030 cost assumptions on comparable basis source: Breyer Ch., et al., 2016. On the Role of Solar Photovoltaics in Global Energy Transition Scenarios, 32nd EU PVSEC, Munich, June 20-24 Key insights: ¾ PV-Wind-Gas is the least cost option ¾ Nuclear and coal-CCS is too expensive ¾ Nuclear and coal-CCS are high risk technologies ¾ 100% RE systems are highly cost competitive Transition towards a 100% renewable energy system by 2050 for Ukraine Source: Agora Energiewende, 2014. Comparing the Cost of Low-Carbon Technologies: 17 SEF 2016, Kiev, Ukraine What is the Cheapest option; Grubler A., 2010. The costs of the French Michael ChildŹ [email protected] nuclear scale-up: A case of
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