RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy...

18
www. erranet.org RES connection to the distribution grid Prepared by Prof. Vidmantas Jankauskas

Transcript of RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy...

Page 1: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

www. erranet.org

RES connection to the distribution grid

Prepared by

Prof. Vidmantas Jankauskas

Page 2: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

2 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

Agenda

1. RES-E connection to the networks

2. Guiding principles for RES-E connection in

the EU

Page 3: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

3 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

Regulatory objectives when connecting

RES-E plants

• to help meet RES-E policy objectives (e.g.

quantitative RES-E capacity or consumption

targets)

• to promote the utilisation of best quality RES

resources

• to select best quality applications to ensure

that what is licensed will indeed be built

• to minimise the cost of RES-E integration for

end customers

Page 4: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

4 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

Asymmetric incentives for RES-E generation

vs network

• RES-E generation: fast, easy, simple

incentives

• Network upgrade and expansion: slow,

complicate, counter-incentive

• Integrated resources and network planning is

necessary

• Queue management

• Sufficient incentives for transmission and

distribution upgrade

Page 5: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

5 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

RES connection to distribution networks

• Usually a RES power plant is connected to a

distribution system

• In the past distribution networks were designed

in order to operate in radial configuration with

a single source and a single sense of energy

flow

• When many sources are present in the

distribution electric grid we have a distributed

generation (DG)

5

Page 6: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

6 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

The works to be performed for new

connection

Reinforcement, which are upgrades to the

existing transmission or distribution system

(sometimes extensions to the existing system

are also termed reinforcements)

Extensions of the existing system to the

user’s installations (sometimes extensions are

termed augmentations)

6

Page 7: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

Connection charging (cost allocation)

7

New connection line

Existing grid infrastructure

Co

st a

lloca

tio

n

deep

shallow

Super shallow

Page 8: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

DSO revenues and tariffs

Network tariff

Connection charge

Network tariff

Connection charge

Fixed

Capacity charge

Energy charge

Network tariff

Deep connection

charge Shallow connection

charge

Page 9: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

9 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

When connecting RES plants

• The shallow connection pricing policy have

to be favoured when connecting RES

plants

all reinforcement costs being shared among

users,

the viability of RES projects is improved

• Such a connection pricing does not

constitute a market entry barrier as the

deep connection policy does

9

Page 10: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

10 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

Guiding principles for good connection

practices

1. RES Directive

Legally binding RES targets for 2020

Guaranteed access to network, transmission and

distribution of electricity produced from RES

An appropriate grid infrastructure to be ensured

2. 3rd Liberalisation Package

– binding harmonisation rules: Network Codes

These two legislative packages should be the

guiding principle for stakeholders when

considering any policy options

Page 11: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

11 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

Guiding principles in the RES Directive

RES Directive requires a guaranteed access to

transmission and distribution grids of electricity

produced from RES

Rationale of network arrangements in the RES

Directive:

• In the absence of effective competition in the energy

market, priority access and dispatch for RES is

necessary

• Priority grid access should be seen as compensation

to new entrants given there is no functioning

internal energy market

Page 12: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

12 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

RES Directive Art.16 §7

Member States shall ensure that the charging of

transmission and distribution tariffs does not

discriminate against electricity from renewable

energy sources, including in particular electricity

from renewable energy sources produced in

peripheral regions such as island regions, and in

regions of low population density. (…).

Page 13: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

13 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

European energy regulators in 2009 issued

Guidelines on connection to the grid:

• The connection procedures shall be elaborated

and / or approved by the NRAs as part of the

terms and conditions for connection and access to

the grid

• They shall comply with the principles of regulated

TPA and be transparent and non-discriminatory

• The technical requirements for connection shall be

elaborated and approved by the respective

authority (regulator) as part of the terms and

conditions for connection and access to the grid

Source: ERGEG

Page 14: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

14 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

The ERGEG guidelines (cont.)

• The TSOs and/or DSOs shall design the technical

solution for connection under transparent and

non-discriminatory conditions, in cooperation

with the applicant for grid connection

• The TSO and DSO shall have transparent and

non-discriminatory conditions for checking the

compliance with connection requirements

• The TSO and DSO shall provide the information

on technical requirements for grid connection at

the connection point – in compliance with

harmonised standards

Source: ERGEG

Page 15: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

15 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

ACER’s Framework Guidelines on New

Connections

• These Guidelines aimed at setting out clear and

objective principles for the development of

network codes

• The network code(s) developed according to

these Guidelines should be applied by electricity

system operators and significant grid users

• The network code(s) developed according to

these Guidelines take precedence over the

relevant national codes and international

standards and regulations

Page 16: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

16 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

Network Code on Requirements for grid

connection applicable to all generators

• have been developed in 2013 as a complement

to the requirements set forth by ACER’s

Guidelines

• It is seen as one of the main drivers for creating

harmonised solutions and products necessary for

an efficient pan-European (and global) market in

generator technology

Page 17: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

17 1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

Relative cost for connecting wind parks: mean

grid access costs (% of overall project costs)

Page 18: RES connection to the distribution grid - ERRA...1st Training Course: Fundamentals of Energy Regulation May 2 – May 4, 2018 • Nicosia, Cyprus Network Code on Requirements for grid

W

THANK YOU

FOR YOUR ATTENTION!

1st Training Course: Fundamentals of Energy Regulation

May 2 – May 4, 2018 • Nicosia, Cyprus

E-mail: [email protected]

Web: www.vgtu.lt