Integration of Wind Energy in Power Systems

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Integration of Wind Energy in Power Systems Integration of Wind Energy in Power Systems A summary of Danish experiences May 2017 Content 1 Introduction ............................................................................................................................................. 4 2 Historical development of wind power in Denmark ................................................................................ 5 2.1 The oil crisis in the 1970s and the foundation of the modern wind industry.................................. 5 2.2 The electrical power system in Denmark today ............................................................................. 7 2.3 Onshore and offshore wind power in Denmark today ................................................................. 11 2.4 The relevance of Danish experience for Indonesia ..................................................................... 13 3 Power generation from wind turbines ................................................................................................... 15 3.1 Characteristics of wind power generation.................................................................................... 15 3.2 Turbine design parameters for specific wind sites ...................................................................... 17 3.3 Economy of modern wind power ................................................................................................. 20 3.4 Discussion – low speed wind turbines ......................................................................................... 26 4 Policy and regulatory measures for promotion of wind power in Denmark .......................................... 29 4.1 Political strategies undertaken in Denmark to accelerate wind power ........................................ 29 4.2 Overall regulation and policy framework in Denmark .................................................................. 32 4.3 Subsidy schemes for onshore and offshore wind power in Denmark today ............................... 34 4.4 Discussion – looking into which subsidy schemes that are useful to kick start a development of wind power in Indonesia .......................................................................................................................... 39 5 Challenges related to integration of wind power .................................................................................. 43 5.1 Ensuring a suitable grid ............................................................................................................... 43 5.2 Ensuring the value of wind when it is very windy ........................................................................ 43 5.3 Ensuring sufficient production capacity when it is not windy ....................................................... 44 5.4 Balancing wind power .................................................................................................................. 45 5.5 How wind power leads to the need for a more flexible power system ........................................ 45 6 Power markets in Europe ..................................................................................................................... 49 6.1 Price generation ........................................................................................................................... 50 6.2 Discussion ................................................................................................................................... 58 7 Operating the power system with wind power in Denmark .................................................................. 59 7.1 Wind power and system flexibility ................................................................................................ 59 7.2 Operational planning.................................................................................................................... 61 7.3 Forecasting systems .................................................................................................................... 65 7.4 System reserve requirements ...................................................................................................... 70 Page 2/103 Integration of Wind Energy in Power Systems 7.5 Discussion – How some of the power system’s operational limitation and challenges that the Indonesian power system experience can be addressed in order to integrate more wind power ........... 73 8 Power system flexibility for integration of wind power in Denmark ...................................................... 74 8.1 The transmission system ............................................................................................................. 74 8.2 Flexibility in conventional power plants ....................................................................................... 76 8.3 Power to heat ............................................................................................................................... 81 8.4 Demand response ....................................................................................................................... 84 8.5 Ancillary services ......................................................................................................................... 87 8.6 Discussion – discussion on possible measures that could be taken to increase the flexibility in the Indonesian power system .................................................................................................................. 88 9 Grid connection of wind power plants in Denmark ............................................................................... 90 9.1 Approval process of wind power plants in DK ............................................................................. 90 9.2 Technical requirements in a grid connection code for wind power plants ................................... 92 9.3 Grid connection of wind power plants and technical assessments ............................................. 94 9.4 Discussion ................................................................................................................................... 94 10 Integration of photovoltaics .............................................................................................................. 96 10.1 Characteristic of solar power ....................................................................................................... 96 10.2 Integration of solar power ............................................................................................................ 96 10.3 Discussion – technical integration issues of solar power in Indonesia ........................................ 97 11 Island systems ................................................................................................................................. 98 11.1 Case story – The Faroe Islands .................................................................................................. 98 11.2 Case story – Micro-grid solutions for remote islands and villages ............................................ 103 Page 3/103 Integration of Wind Energy in Power Systems 1 Introduction The aim of this report is to describe Danish experiences with wind integration and discuss their relevance regarding the integration of wind and solar power in Indonesia, particularly regarding grid connection. In this respect, Indonesia is facing the following tasks and challenges: 1) To establish policies and regulatory measures that will help accelerate the development of wind power and other variable renewable sources. 2) To ensure a secure and stable electricity system where demand and supply is balanced, system operation is smooth, and voltage/frequency is under control, even if 10% or more of the energy mix is covered by wind power production in the future. 3) To ensure an economically efficient operation of the electricity system with an optimal utilisation of wind power. 4) To evaluate potential wind power projects and on the basis of evaluations, to decide which po- tential wind power projects can be approved and accepted for grid connection, while still main- taining a secure and balanced electricity system. 5) To ensure a smooth integration of solar power in the Indonesian power system. The specific focus of the report is thereby on regulatory and technical power system integration chal- lenges, primarily related to wind power. The report is based on Danish experiences with integration of wind power, and these experiences are - to the extent possible for the Danish experts with their current knowledge of the Indonesian electricity system - related to the Indonesian context. Chapter 2 provides an historical overview of wind power development in Denmark. Chapter 3 focuses on the nature of pow- er generation from wind turbines; chapter 4 discusses how policy can support an expansion of wind pow- er, and chapter 5 shares Danish experiences from operating the power system with high wind power penetrations of up to 42%. Chapter 7 discusses Danish experiences with power system flexibility measures designed to aid the integration of wind power and chapter 9 discusses how to assess and approve grid connection of wind power plants. Finally, chapter 10 will briefly discuss Danish experiences from grid inte- gration of photovoltaics. Based on lessons learned from Denmark, the end of most chapters will discuss how to address challenges faced by Indonesia today with regards to the topics of the specific chapters. This specific composition of topics is the result
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