Research Into Renewable Electricity Systems
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Research into renewable electricity systems CLIENT: National Infrastructure Commission DATE: 10/12/2020 Version History Version Date Description Prepared by Approved by 1.0 10/12/2020 Final Matthew Grant Duncan Sinclair George Batts Contact Duncan Sinclair ([email protected] +44 7887 500 856) Matthew Grant ([email protected] +44 7878 755 644) Copyright Copyright © Baringa Partners LLP 2020. All rights reserved. This document is subject to contract and contains confidential and proprietary information. No part of this document may be reproduced without the prior written permission of Baringa Partners LLP. 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Where specific Baringa clients are mentioned by name, please do not contact them without our prior written approval. Baringa Partners LLP is a Limited Liability Partnership registered in England and Wales with registration number OC303471 and with registered offices at 62 Buckingham Gate, London, SW1E 6AJ, UK. Client Confidential 2 Contents 1 Purpose of the study ............................................................................................................. 4 1.1 The National Infrastructure Commission ........................................................................... 4 1.2 The scope of this study ...................................................................................................... 4 1.3 Structure of this document and supporting information .................................................. 4 2 Case study selection and overview ........................................................................................ 6 2.1 Baringa’s approach ............................................................................................................ 6 2.2 Case study markets/regions .............................................................................................. 6 2.3 Comparative statistics ........................................................................................................ 8 3 Market/region background ................................................................................................... 9 3.1 Ireland ................................................................................................................................ 9 3.2 Germany............................................................................................................................. 9 3.3 Denmark ........................................................................................................................... 10 3.4 Spain ................................................................................................................................. 10 3.5 Australia ........................................................................................................................... 11 3.6 California .......................................................................................................................... 11 3.7 Taiwan .............................................................................................................................. 11 4 Key insights ........................................................................................................................ 13 Appendix A Case study reports ................................................................................................ 22 Tables Table 1 Comparative statistics ................................................................................................ 8 Figures Figure 1 Overview of markets/regions included in the case study report .................................. 7 Figure 2 Key insights ............................................................................................................. 13 Baringa Partners LLP is a Limited Liability Partnership registered in England and Wales with registration number OC303471 and with registered offices at 62 Buckingham Gate, London, SW1E 6AJ, UK. Client Confidential 3 1 Purpose of the study 1.1 The National Infrastructure Commission The National Infrastructure Commission (NIC) is the body responsible for providing independent analysis and advice to the Government to ensure the UK meets its long-term infrastructure needs. Its role is to support sustainable economic growth across all regions of the UK, improve competitiveness, and improve quality of life. In doing so, it aims to be the UK’s most credible, forward-thinking and influential voice on infrastructure policy and strategy. The NIC is set up to publish a National Infrastructure Assessment once in every Parliament setting out its assessment of long-term infrastructure needs, with recommendations to the Government – the first of which was published in July 2018. The NIC also undertakes in-depth studies into the UK’s most pressing infrastructure challenges and monitors the Government’s progress in delivering infrastructure projects and programmes recommended by the Commission. 1.2 The scope of this study The NIC commissioned Baringa to complete a study to explore how other countries and regions are addressing the challenges of integrating high levels of renewables into their electricity systems. The study is based on a set of case studies, with supporting evidence, to show progress, policy, market design and grid integration strategies. The primary aims of the study are to: Understand what progress comparable electricity systems to the UK have made in deploying renewables Synthesise evidence on how effective current policies and markets have been in deploying high levels of renewables to date Summarise how other regions/countries that have deployed high levels of renewables have integrated them effectively onto their electricity grids to help the NIC derive a set of insights relevant to the UK. 1.3 Structure of this document and supporting information This document is a summary of Baringa’s analysis, providing an overview of the key insights gathered during the engagement. The document structure is as follows: Section 2: Case study selection and overview Section 3: Market/region background Section 4: Key insights Appendix A: Case study reports Baringa Partners LLP is a Limited Liability Partnership registered in England and Wales with registration number OC303471 and with registered offices at 62 Buckingham Gate, London, SW1E 6AJ, UK. Client Confidential 4 To support this summary, we provide a detailed set of system case study reports, one for each of the seven markets or regions included in the study. These system case studies provide the evidence base used to inform the key insights in this document. Each of the seven system case studies follows the following structure: Baringa Partners LLP is a Limited Liability Partnership registered in England and Wales with registration number OC303471 and with registered offices at 62 Buckingham Gate, London, SW1E 6AJ, UK. Client Confidential 5 2 Case study selection and overview 2.1 Baringa’s approach At the start of the study, Baringa and the NIC decided on the set of seven markets or regions to consider. We decided on these case studies following a selection process taking into account: Each region’s progress in deploying renewables The maturity of renewable policy development and frameworks for investment Progress in deploying technologies and mechanisms to integrate intermittent renewables effectively Comparable grid implementation challenges These are all issues that are pertinent to the UK and its current renewable growth and ambition. Our study approach relied upon a range of information sources and data, which we have built up over a number of years of research and analysis in these markets. These included public information sources, relevant for each market, including: Governments and National Regulatory Authorities Regional and international energy agencies National Transmission System Operators and Independent System Operators Regional network organisations (such the European Network of Transmission System Operators, ENTSO-E, in Europe) Regional media outlets (example reports on company level investment plans or financial decisions) Trade journals and news reports We reference relevant information sources throughout the case study reports. 2.2 Case study markets/regions Figure 1 shows the seven case study markets and regions we included in the study. Baringa Partners LLP is a Limited Liability Partnership registered in England and Wales with registration number OC303471 and with registered offices at 62 Buckingham Gate, London, SW1E 6AJ, UK. Client Confidential 6 Figure 1 Overview of markets/regions