ENERGIEWENDE AND REFORMING THE ENERGY VISION

© Fraunhofer ISE

Lessons that could be learned form German Experiences of Installing >80GW of Distributed Energy Resources

ENERGIEWENDE AND REFORMING THE ENERGY VISION

Soenke RogallaFraunhofer Institute for Solar Energy Systems ISE, Freiburg, Germany

SeminarRensselear Politechnic Insitute, Troy, NYAugust 18, 2015

www.ise.fraunhofer.de

© Fraunhofer ISE

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IntroductionFraunhofer Institute for Solar Energy Systems ISE

Located in Freiburg, Germany

Funded in 1981

Applied scientific and engineering R&D for energy generation, conversion, distribution & storage

Largest institute for applied solar energy research in Europe:

Staff: ~1,300 , budget: >80 Mio. EUR

Megawatt Laboratory: Characterization of grid-connected power electronics


www.testlab-pe.de

© Fraunhofer ISE

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ENERGIEWENDE(ENERGY TRANSITION)

Source: http://www.e-world-essen.com/uploads/pics/Forum_Energiewende_normal_06.jpg

© Fraunhofer ISE

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AGENDA

Introduction

German Renewable Energy Policies

Facts and Figures

Energy Costs

Lessons Learned

Latest Developments

Policies

MarketTechnology

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Principle Technical Challenge of the EnergiewendeTransition from Synchronous Generators to Inverters

Turbo-generator set: team turbine (yellow) withsynchronous generator (red), Source: Siemens

Change of dominance

Past: Synchronous Generators Basis for electrical power generation

since the beginning Electro-mechanical device Given physical behavior determines Grid control and protection Dynamics of the energy system

Central Inverter for utility-scale PV power plants.Source: GE Power Conversion

Future: Inverters (Power Electronics) Technology for most of the future

(renewables) energy resources Semiconductor based device Flexible programmable behavior High control dynamics (~ ms) Compliance requirements t.b.d.

S. Rogalla / Fraunhofer ISE

© Fraunhofer ISE

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Key:

: Linie-to-line voltage at the inverter terminals

High Penetration of Power Electronics in Electrical GridsExample of Subsynchronous Resonance in a PV-system

500

250

0

-250

-500

Gri

d V

olt

ag

e /

V

0,0 0,1 0,2 0,3 0,4 0,5 0,6

Time / s

Severe Resonance

Gri

d C

urr

en

t / A

1500

750

0

-750

-1500

Key:

: inverter phase currents

Over-Currents

Power Quality Issues

Stability isn‘t given by nature!

But it can be assured by appling the right invertercontrol methods and settings!

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GERMAN RENEWABLE ENERGY POLICES

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Historical Background German Environmental Movement

Since 1970ies strong support in the German society

Subjects:

preservation of flora and fauna, farming, animal husbandry

waste management

chemical industry

forest dieback, deforestation of the rainforest

climate protection: ozone hole, CO2-emissions

anti-nuclear movement

Establishing of the Green Party 1980

© Bernd Kammerer

Source: www.journal-frankfurt.de

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Historical Background German Renewable Energy Act

Dec 7, 1990: „Stromeinspeisegesetz“ (Current feed-in act)

Obligation for utilities to remunerate for renewable generated electricity

April 1, 2000„1. Erneuerbare Energien Gesetz EEG“ (1st Renewable Energy Act)

Definition of feed-in tariffs (FIT)

Priority for renewable generated electricity

4 amendments since than

Reichstag Building (German Parliament)

Source: www.energiequellen.net

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Historical Background Germany’s Nuclear Power Phase-Out 2011

„Nuclear moratorium“ as of March 14, 2011 (3 days after the Fukushima Daiichi nuclear disaster)

Instant decommission of Germany‘s eight oldest nuclear reactors (6.3 GW)

“Energiewende Act” (June 6, 2011)

Decommission of all remaining 12 reactors until 2022 (12.7 GW)

Adoption of Renewable Energy Act

Acceleration of grid enhancement

Building Insulation Act

Energy and Climate FundSource: Stepmap.de

German Nuclear Phase-OutNuclear reactors (Decommission)

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Goals of the German Energiewende

Reduction of green-house gas emissions by 80-95% (cp. 1990)

Reduction of the primary energy consumption by 50 %

Nuclear phase-out

Electricty by Renewables 35% 50% 80%

Renewable share of enduser energy consumption 60%

Enhancement of the transport. grid

2020 2030 2050

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German National Grid Development Plan

4 planned HVDC-lines

Electricity transport from north to south

Avoids new HVAC infrastructure

Grid enhancement: approx. 3,300 mi

New infrastructure: approx. 2,300 mi(1,400 mi HVDC)

Overall Investment over 10 years: $ 20 – 24 billion

Source: Netzentwicklungsplan, 2014

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FACTS AND FIGURES

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At a GlanceGermany <-> New York State

Germany New York

Population 81 million 20 million

Area 357,168 km²137,847 sq mi

141,300 km²54,555 sq mi

Annual net electricity consumption ~500 TWh ~145 TWh

Annual net electricity consumption per capita

~6,200 kWh ~7.250 kWh

Average electricity retail price (residential / industrial)

~$0.33/kWh ~$0.12/kWh

~$0.18/kWh~$0.07/kWh

Annual solar irradiation ~1,000 kWh/m²/a ~1,500 kWh/m²/a

Data: Fraunhofer ISE, NYSERDA, WIkipedia

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Annual Solar Irradiation (USA, Germany, Spain)

Source: http://www.nrel.gov/gis/mapsearch/

~1,500 kWh/m²/a

>2,000 kWh/m²/a

~1,000 kWh/m²/a

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year 2014

Electricity production in 2014

TWh

100

120

140

80

60

40

20

91.8 TWh

140.9 TWh

99.0 TWh

33.2 TWh51.4 TWh

32.8 TWh53.9 TWh

18.5 TWh

BiomassBrown Coal Hard CoalUranium Gas Wind Solar Hydro power

40

30

20

10

GW

Biomass

Installed power

Brown Coal Hard CoalUranium Gas Wind Solar Hydro power

year 2014

33.668 GW

12.068 GW

21.247 GW26.340 GW

28.241 GW

5.607 GW

36.858 GW

7.537 GW

Electricity Generation from RenewablesInstalled Power Capacities and Produces Energy in 2014

88 GW conventional 84 GW renewable

365 TWh conventional 157 TWh renewable

Source: Fraunhofer ISE, www.energy-charts.de

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Conventional EnergiesGeneration Capacity (GW)


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Renewable EnergiesGrowth of Generation Capacities (GW)


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Jobs Creation by Renewable Energy Industry

Source: BMWi , © GWS, DLR, DIW, Prognos 2014

tho

usa

nd

s o

f jo

bs

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Energy Production www.energy-charts.de

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ENERGY COSTS

PV Learning Curve

Cost development for renewables

Market and installation rates

Policy adoptions and development of feed-in tariffs (FIT)

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PV Learning CurveHistorical and Future Prices

Source: Agora Energiewende/Fraunhofer ISE Study “Current and Future Cost of Photovoltaics” (Feb 2015)

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LCoE of Renewable and Conventional Power Plants Calculation for Germany 2013 - 2030

Source: Fraunhofer ISE Study “Levelized Cost of Electricity Renewable Energy Technologies” (Nov 2013)

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Levelized Cost of Energy (LCoE) for PVGermany vs. Spain for Different Costs of Capital

Source: Agora Energiewende/Fraunhofer ISE Study “Current and Future Cost of Photovoltaics” (Feb 2015)

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Prices for PV Systems in GermanyAverage Price for PV Rooftop Systems (10 – 100 kWp)

Taken from Fraunhofer ISE’s “Photvoltaics-Report” (Oct 20 , 2014)

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Annual PV Installations in MWp

-75%

Target corridor

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0

10

20

30

40

50

60

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020year

€Cen

ts/k

Wh

Photovoltaic

Feed-in tariff in Germany

2004 to 2010:41% or 8,3%/a

2010 to 2014:65% or 23%/a

Degression:2004 to 2014:76% or 13,3%/a

In future:0,5%/m or 5,8%/a

June 2014:9,0ct – 13,0ct

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Attractiveness for PV InvestmentsPrices vs. FIT

Taken from Fraunhofer ISE’s “Photvoltaics-Report” (Oct 20 , 2014)

Very low attractiveness

FIT (€/kWh)

0.6

0.4

0.2

0.0

Difference btw. price and FIT = Attractiveness

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Relation between Policies, Market and Technology/Price

Policy

Technology

Market

Price

Market development affects political decisions

Sets FIT

Economy of scale reduces prices

Market animates tech. developments

Difference btw. FIT and price = Attractiveness

-+

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0

10

20

30

40

50

60

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020year

€Cen

ts/k

Wh

Industry

Household

Photovoltaic

Comparison: Feed-in tariff and electricity costs

Grid parity with household electricity2010 to 2012

Grid parity with Industry electricity2012 to 2014

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0

10

20

30

40

50

60

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020year

€Cen

ts/k

Wh

Wind

Photovoltaic

Comparison: Feed-in tariff for PV and Wind

Parity with Wind offshore2012 to 2014

Parity with Wind onshore2014 to 2020

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Jahr

€Cen

ts/k

Wh

0

10

20

30

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

40

50

60

gasolinediesel

natural gas, fuel oil

Photovoltaic

Comparison: Feed-in tariff for PV – costs of fossil fuels

Parity with Gasoline, diesel2012 to 2013

Parity with natural gas, fuel oil2014 to 2017

Diesel-Genset(LCoE)

Parity with diesel-generated electricity2007 to 2010

calorific values:gasoline: 8,9 kWh/ldiesel: 9,8 kWh/l

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LESSONS LEARNED

50.2 Hz Problem

Short-Term Grid Faults / Fault Ride Through Capability

Solar Eclipse 2015

Grid Codes

Source: www.lessonslearned.com

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Lessons Learned50.2 Hz Problem

Before 2011 regulation required immediately shut-down of DERs at over-frequency > 50.2 Hz

European operating reserve is designed to tolerate a sudden loss of max. 3 GW

At this time >12 GW of PV-systems had been installed in Germany alone

Over-frequencies might have kicked out high amount of PV

Destabilization of the whole European Network could have been the consequence Entso-E Network. Source: wikipedia.de

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Lessons Learned50.2 Hz Problem (Solution)

DERs are required to ramp-down its active power depending on the frequency. self-stabilizing mechanism

315,000 existing PV-systems (12GW) needed to be retrofitted!

Lessons Learned:

Do not under-estimate DER!

If not today, DER can get system-relevant faster than regulations can be adopted!

Have a long-term foresight, when defining technical rules!

Over-frequency requirement accord. To BDEW MV GuidlineGraphic: SMA

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Lessons LearnedBlack-Out Risk as a Consequence of Short-Term Faults

Scenario:

Short in transmission lines lead to wide-area voltage sag with several GW of generation affected.

Sudden loss of large amount of generation can destabilize the whole European ENTSO-E network.

Lessons learned:

Renewables are no additional source of energy anymore - today they play a crucial role in the networks!

Renewable power plants must contribute to grid stabilization in case of grid failures.

The grid voltage is like a spider web:Shorts lead to a “voltage crater” , which can affect a large area.

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Lessons LearnedLow Voltage Ride Through Requirements

Renewable power plants should support the faulty grid by:

Not disconnecting from the grid

Feeding short-circuit current

Supporting the grid voltage by feeding a reactive current

Continue with regular operation directly after fault clearance

LVRT boundary line according to the German BDEW medium-voltage guideline

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Lessons Learned Solar Eclipse on March 20, 2015

Questions and discussions in advance:

Will high PV-power gradients have an critical influence on the power system?

Are there enough (fast controllable) generation and storage capacities to handle the situation?

Should PV production be blocked for the whole day?

Black-out possible?

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Lessons Learned Solar Eclipse: Power Gradient Simulations

Source: www.rp-online.de, Photo: Shutterstock.com/ underworld

15-min gradientes can be up to 3x higher than during normal days.

Stress test for the energy system (3x higher share of PV production)

Day in March w/o solar eclipse Day in March with solar eclipse

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Lessons Learned Solar Eclipse: Measurements

Source: www.netzfrequenzmessung.de

No black out occured

Grid frequency during the solar eclipse showed no abnormallities

Stress test passed!

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Grid Codes as a Technical Consequence Overview for Germany

High voltage grid

• VDE-AR-N 4120(2015 with 2-years transition period)

Medium voltage grid

• VDE-AR-N-4110(expected 2016)

• BDEW medium voltage grid code (2008)

• Test: FGW - TG3

• Simulation:FGW - TG4

• Certification:FGW - TG8

Low voltage grid

• VDE-AR-N 4105(2011)

• Test:• VDE-V-0124-100

• DIN CLC/TS 50549-1(2014 - Draft pre-standard)

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German Grid CodesOverview on Requirements

Power Quality

Reactive Power Control

Active Power Control

Network and Plant Protection

Low Voltage Ride Through

f V

=

~~

f

P

According to the BDEW Medium-Voltage Guideline / FGW Test Guideline TG3

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Grid Code Learning ProcessOutlook

Today’s grid codes

• Local voltage control / Grid support during abnormal situation• Active and reactive power control• Limits for harmonics and flicker• LVRT capability

Upcomingrequire-ments

• “Lessons learned” / International adoptions• Dynamic grid support for unsymmetrical faults• OVRT, frequencyRT• Volt-VAr control at night

Future require-ments

• Decentralized power electronics as reliable resources for grid control• Operation at weak grid connection points / islands grids• Compensation of harmonics• Grid forming functions (voltage / frequency control)

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LATEST DEVELOPMENTS

Political and economical discussions

Technical discussions

PV-Battery storage stimulation program

New approaches

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Current DiscussionsPolitical and Economical

Development of renewables and costs for the Energiewende

How can PV installation rate meet the target corridor again?

Ground-mounted PV auction ordinance

Climate protection goals

Failure of the EU emissions trading system

Reduction of emissions by lignite-fired power plants

Grid enhancement and cost coverage

Acceptance of new HVDC-lines

Tax on self-consumed electricity

Calculation of grid fees in a world of growing self-generation

Energy Market

New market engineering / capacity markets

Impact of the Energiewende on the traditional market players

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Ownership of PV Power Plants in Germany

Taken from Fraunhofer ISE’s fact sheet “Recent facts about photovoltaics in Germany” (May 25, 2015)

“Big 4” energy companies only hold 0.2% of the PV installations!

Private Persons

Farmers

Banks

Project developers

Industry

Regional andinternational utilities

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E.ON SplitThe New Energy World is Different

Splitting plans announced in Nov 2014

Remaining “e.on”

Keeps grid operation and renewables

Staff: 40,000

New “Uniper”

Founded in April 2015

Takes conventional generation(hydro, fossil and nuclear)

Staff 15,000

Source: The Wall Street Journal, Nov. 30, 2014

Source: e.on / www.energytransition.de, Dec 01, 2014

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Current DiscussionsTechnical

Ancillary services

Fault ride through in LV-grids

Volt-Var-Control vs. voltage regulating distribution transformers

Power quality improvements (harmonic compensation)

Power Gradients / Ramp rate control

HVDC terminals as a tool for grid control

Battery storage systems

Small, medium and large scale

Market development

Grid-friendly operation

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PV-Battery Storage Stimulation Program

Government grant for PV-storage systems

More than 10,000 storage systems installed in between 05/13 and 05/15

Technical requirements

Grid-friendly operation

Max. power in-feed: 60% of nominal PV-power

Volt-Var-control

Power-frequency control above 50.2 Hz

Remote control readiness

Updateable for future requirements Source:

BSW-Faktenblatt PV, 06/2015, http://www.solarwirtschaft.de

No. of monthly granted PV-storage systems

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New Approaches and Solutions Strombank - A Giro Account for Renewables (I)

Source: Presentation: „ Strombank - A Giro Account for Renewable Energy”Dr. Robert Thomann , Innovation Manager , MVV Energie AG, GermanyConference: ees Europe, Munich, June 21-22, 2015

Link: https://www.mvv-energie.de/strombank

Sorry, still waiting for approval for publication…

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New Approaches and Solutions Lichtblick - SchwarmEnergie

LichtBlick SE

German PSC

Offers 100% Renewables

IP platform „SchwarmDirigent“ connects and controls distributed

PV systems

CHP systems

Home batteries

Loads

Virtual power plant

Source: www.lichtblick.de

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New Approaches and Solutions Research project PV-Wind-Symbiose

Combined control of PV and Wind power plants

Reactive power for the transmissions grids from the distribution grids

Source: Schweer (Mitnetz), www.energieregion-lausitz.de

Today Tomorrow

ActivePower

ReactivePower

ActivePower

ReactivePower

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Conclusions

The Energiewende is a one of today’s largest technical, economical and sociological challenge

Renewables are already or will be soon the cheapest source of energy

Today 50% of the German power capacities are renewable power plants

Germany has scaled its share of renewable up to 25%

Important – sometimes painful - lessons had been learned

New lessons will be learned as the penetration of renewables rises

Markets can develop faster than regulations

During this presentation new PV systems with a capacity of 6 MWp had been installed world-wide!

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Thank you for your attention!

Fraunhofer Institute for Solar Energy Systems ISE

Soenke Rogalla


www.testlab-pe.de

[email protected]

© Fraunhofer ISE

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Literature

Fraunhofer ISE (www.ise.fraunhofer.de/en)

Energy Charts (www.energy-charts.de)

Recent facts about photovoltaics in Germany (Fact Sheet)

Electricity production from solar and wind in Germany (Fact Sheet)

Photovoltaics Report (Fact Sheet)

Current and Future Cost of Photovoltaics (Study for Agora Energiewende)

Levelized Cost of Electricity (Study, Nov 2013)

Federal Ministry for Economic Affairs and Energy (Germany) (www.bmwi.de/en , www.erneuerbare-energien.de )

Renewable Energy at a Glance

2014 Renewable Energy Sources Act

AGEE-Stat (Statistiks about Renewable)

BSW Solar (www.solarwirtschaft.de )

Photovoltaik Fact Sheet

ENERGIEWENDE AND REFORMING THE ENERGY VISION

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