[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v159y2020icp908-919.html
   My bibliography  Save this article

Capacity credit and market value analysis of photovoltaic integration considering grid flexibility requirements

Author

Listed:
  • Li, Yanxue
  • Zhang, Xiaoyi
  • Gao, Weijun
  • Ruan, Yingjun
Abstract
Rising share of integrated variable renewable energy production may create power curtailment and renewable market value drop. In this work, the states of examined objectives that experienced rising photovoltaic (PV) penetration are described, challenges considering ramp rates and renewable curtailment illustrated. Meanwhile, a renewable capacity credit analysis approach was introduced, scenarios for PV integration were illustrated through an integration model considering the grid operational constraints, and the resulting PV power capacity credit was also presented. Results indicated that surplus generation presented significant monthly variations, and PV capacity credit value presented a lower increasing rate with rising integrated PV power capacity. The effect of a rising integrated PV power system on electricity trading price was illustrated based on open market data. The value of real-time market trading price presented a decreasing trend in response to a rising contribution of PV power production to flexible load. A decrease was obvious at initial rising integrated PV production, and more than half a drop was observed when flexibility limitation was reached. Furthermore, the economic performance of power to heat and power to gas for excess PV power production utilization was assessed and compared, annual utilization ratio plays a crucial role in their cost competitiveness.

Suggested Citation

  • Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Ruan, Yingjun, 2020. "Capacity credit and market value analysis of photovoltaic integration considering grid flexibility requirements," Renewable Energy, Elsevier, vol. 159(C), pages 908-919.
    • Handle: RePEc:eee:renene:v:159:y:2020:i:c:p:908-919
    DOI: 10.1016/j.renene.2020.06.054
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148120309605
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2020.06.054?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cyril Martin de Lagarde & Frédéric Lantz, 2018. "How renewable production depresses electricity prices: Evidence from the German market," Post-Print hal-01985024, HAL.
    2. Voyant, Cyril & Notton, Gilles & Kalogirou, Soteris & Nivet, Marie-Laure & Paoli, Christophe & Motte, Fabrice & Fouilloy, Alexis, 2017. "Machine learning methods for solar radiation forecasting: A review," Renewable Energy, Elsevier, vol. 105(C), pages 569-582.
    3. Kotzur, Leander & Markewitz, Peter & Robinius, Martin & Stolten, Detlef, 2018. "Time series aggregation for energy system design: Modeling seasonal storage," Applied Energy, Elsevier, vol. 213(C), pages 123-135.
    4. Le Dréau, J. & Heiselberg, P., 2016. "Energy flexibility of residential buildings using short term heat storage in the thermal mass," Energy, Elsevier, vol. 111(C), pages 991-1002.
    5. Huang, Yu Wen & Kittner, Noah & Kammen, Daniel M., 2019. "ASEAN grid flexibility: Preparedness for grid integration of renewable energy," Energy Policy, Elsevier, vol. 128(C), pages 711-726.
    6. Coester, Andreas & Hofkes, Marjan W. & Papyrakis, Elissaios, 2018. "Economics of renewable energy expansion and security of supply: A dynamic simulation of the German electricity market," Applied Energy, Elsevier, vol. 231(C), pages 1268-1284.
    7. Long, Sebastian & Marjanovic, Ognjen & Parisio, Alessandra, 2019. "Generalised control-oriented modelling framework for multi-energy systems," Applied Energy, Elsevier, vol. 235(C), pages 320-331.
    8. Oluleye, Gbemi & Allison, John & Hawker, Graeme & Kelly, Nick & Hawkes, Adam D., 2018. "A two-step optimization model for quantifying the flexibility potential of power-to-heat systems in dwellings," Applied Energy, Elsevier, vol. 228(C), pages 215-228.
    9. Klyapovskiy, Sergey & You, Shi & Michiorri, Andrea & Kariniotakis, George & Bindner, Henrik W., 2019. "Incorporating flexibility options into distribution grid reinforcement planning: A techno-economic framework approach," Applied Energy, Elsevier, vol. 254(C).
    10. Nuytten, Thomas & Claessens, Bert & Paredis, Kristof & Van Bael, Johan & Six, Daan, 2013. "Flexibility of a combined heat and power system with thermal energy storage for district heating," Applied Energy, Elsevier, vol. 104(C), pages 583-591.
    11. Ward, K.R. & Green, R. & Staffell, I., 2019. "Getting prices right in structural electricity market models," Energy Policy, Elsevier, vol. 129(C), pages 1190-1206.
    12. Zhang, Yue & Farnoosh, Arash, 2019. "Analyzing the dynamic impact of electricity futures on revenue and risk of renewable energy in China," Energy Policy, Elsevier, vol. 132(C), pages 678-690.
    13. Catherine Mitchell, 2016. "Momentum is increasing towards a flexible electricity system based on renewables," Nature Energy, Nature, vol. 1(2), pages 1-6, February.
    14. Ueckerdt, Falko & Hirth, Lion & Luderer, Gunnar & Edenhofer, Ottmar, 2013. "System LCOE: What are the costs of variable renewables?," Energy, Elsevier, vol. 63(C), pages 61-75.
    15. Levin, Todd & Kwon, Jonghwan & Botterud, Audun, 2019. "The long-term impacts of carbon and variable renewable energy policies on electricity markets," Energy Policy, Elsevier, vol. 131(C), pages 53-71.
    16. Perera, A.T.D. & Nik, Vahid M. & Wickramasinghe, P.U. & Scartezzini, Jean-Louis, 2019. "Redefining energy system flexibility for distributed energy system design," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    17. Luz, Thiago & Moura, Pedro, 2019. "100% Renewable energy planning with complementarity and flexibility based on a multi-objective assessment," Applied Energy, Elsevier, vol. 255(C).
    18. Tapetado, Pablo & Usaola, Julio, 2019. "Capacity credits of wind and solar generation: The Spanish case," Renewable Energy, Elsevier, vol. 143(C), pages 164-175.
    19. Bjørndal, Endre & Bjørndal, Mette & Midthun, Kjetil & Tomasgard, Asgeir, 2018. "Stochastic electricity dispatch: A challenge for market design," Energy, Elsevier, vol. 150(C), pages 992-1005.
    20. Hirth, Lion, 2013. "The market value of variable renewables," Energy Economics, Elsevier, vol. 38(C), pages 218-236.
    21. Martin de Lagarde, Cyril & Lantz, Frédéric, 2018. "How renewable production depresses electricity prices: Evidence from the German market," Energy Policy, Elsevier, vol. 117(C), pages 263-277.
    22. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    23. Li, Yanxue & Gao, Weijun & Ruan, Yingjun & Ushifusa, Yoshiaki, 2018. "The performance investigation of increasing share of photovoltaic generation in the public grid with pump hydro storage dispatch system, a case study in Japan," Energy, Elsevier, vol. 164(C), pages 811-821.
    24. Hungerford, Zoe & Bruce, Anna & MacGill, Iain, 2019. "The value of flexible load in power systems with high renewable energy penetration," Energy, Elsevier, vol. 188(C).
    25. Bloess, Andreas, 2020. "Modeling of combined heat and power generation in the context of increasing renewable energy penetration," Applied Energy, Elsevier, vol. 267(C).
    26. Yue Zhang & Arash Farnoosh, 2019. "Analyzing the Dynamic Impact of Electricity Futures on Revenue and Risk of Renewable Energy in China," Post-Print hal-02264847, HAL.
    27. McDonagh, Shane & Deane, Paul & Rajendran, Karthik & Murphy, Jerry D., 2019. "Are electrofuels a sustainable transport fuel? Analysis of the effect of controls on carbon, curtailment, and cost of hydrogen," Applied Energy, Elsevier, vol. 247(C), pages 716-730.
    28. van Leeuwen, Charlotte & Mulder, Machiel, 2018. "Power-to-gas in electricity markets dominated by renewables," Applied Energy, Elsevier, vol. 232(C), pages 258-272.
    29. Welder, Lara & Ryberg, D.Severin & Kotzur, Leander & Grube, Thomas & Robinius, Martin & Stolten, Detlef, 2018. "Spatio-temporal optimization of a future energy system for power-to-hydrogen applications in Germany," Energy, Elsevier, vol. 158(C), pages 1130-1149.
    30. Gorre, Jachin & Ortloff, Felix & van Leeuwen, Charlotte, 2019. "Production costs for synthetic methane in 2030 and 2050 of an optimized Power-to-Gas plant with intermediate hydrogen storage," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    31. Pape, Christian, 2018. "The impact of intraday markets on the market value of flexibility — Decomposing effects on profile and the imbalance costs," Energy Economics, Elsevier, vol. 76(C), pages 186-201.
    32. Cyril Martin de Lagarde & Frédéric Lantz, 2018. "How renewable production depresses electricity prices: Evidence from the German market," Post-Print hal-01986207, HAL.
    33. Simshauser, Paul, 2018. "On intermittent renewable generation & the stability of Australia's National Electricity Market," Energy Economics, Elsevier, vol. 72(C), pages 1-19.
    34. Wolf-Peter Schill & Michael Pahle & Christian Gambardella, 2017. "Start-up costs of thermal power plants in markets with increasing shares of variable renewable generation," Nature Energy, Nature, vol. 2(6), pages 1-6, June.
    35. Heggarty, Thomas & Bourmaud, Jean-Yves & Girard, Robin & Kariniotakis, Georges, 2019. "Multi-temporal assessment of power system flexibility requirement," Applied Energy, Elsevier, vol. 238(C), pages 1327-1336.
    36. Zhou, Ella & Cole, Wesley & Frew, Bethany, 2018. "Valuing variable renewable energy for peak demand requirements," Energy, Elsevier, vol. 165(PA), pages 499-511.
    37. Jon Olauson & Mohd Nasir Ayob & Mikael Bergkvist & Nicole Carpman & Valeria Castellucci & Anders Goude & David Lingfors & Rafael Waters & Joakim Widén, 2016. "Net load variability in Nordic countries with a highly or fully renewable power system," Nature Energy, Nature, vol. 1(12), pages 1-8, December.
    38. Denholm, Paul & Hand, Maureen, 2011. "Grid flexibility and storage required to achieve very high penetration of variable renewable electricity," Energy Policy, Elsevier, vol. 39(3), pages 1817-1830, March.
    39. Kopiske, Jakob & Spieker, Sebastian & Tsatsaronis, George, 2017. "Value of power plant flexibility in power systems with high shares of variable renewables: A scenario outlook for Germany 2035," Energy, Elsevier, vol. 137(C), pages 823-833.
    40. Hirth, Lion, 2016. "The benefits of flexibility: The value of wind energy with hydropower," Applied Energy, Elsevier, vol. 181(C), pages 210-223.
    41. Richter, Marcel & Oeljeklaus, Gerd & Görner, Klaus, 2019. "Improving the load flexibility of coal-fired power plants by the integration of a thermal energy storage," Applied Energy, Elsevier, vol. 236(C), pages 607-621.
    42. Gu, Chenghong & Tang, Can & Xiang, Yue & Xie, Da, 2019. "Power-to-gas management using robust optimisation in integrated energy systems," Applied Energy, Elsevier, vol. 236(C), pages 681-689.
    43. Li, Yanxue & Gao, Weijun & Ruan, Yingjun, 2019. "Potential and sensitivity analysis of long-term hydrogen production in resolving surplus RES generation—a case study in Japan," Energy, Elsevier, vol. 171(C), pages 1164-1172.
    44. Wang, Jiawei & You, Shi & Zong, Yi & Træholt, Chresten & Dong, Zhao Yang & Zhou, You, 2019. "Flexibility of combined heat and power plants: A review of technologies and operation strategies," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    45. Panos, Evangelos & Kober, Tom & Wokaun, Alexander, 2019. "Long term evaluation of electric storage technologies vs alternative flexibility options for the Swiss energy system," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    46. Sandberg, Eli & Kirkerud, Jon Gustav & Trømborg, Erik & Bolkesjø, Torjus Folsland, 2019. "Energy system impacts of grid tariff structures for flexible power-to-district heat," Energy, Elsevier, vol. 168(C), pages 772-781.
    47. Zhao, Xiaoli & Liu, Suwei & Yan, Fengguang & Yuan, Ziqian & Liu, Zhiwen, 2017. "Energy conservation, environmental and economic value of the wind power priority dispatch in China," Renewable Energy, Elsevier, vol. 111(C), pages 666-675.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Galvin, Ray & Dütschke, Elisabeth & Weiß, Julika, 2021. "A conceptual framework for understanding rebound effects with renewable electricity: A new challenge for decarbonizing the electricity sector," Renewable Energy, Elsevier, vol. 176(C), pages 423-432.
    2. Ziqi Liu & Tingting Su & Zhiying Quan & Quanli Wu & Yu Wang, 2023. "Review on the Optimal Configuration of Distributed Energy Storage," Energies, MDPI, vol. 16(14), pages 1-17, July.
    3. Cai, Qiran & Qing, Jing & Xu, Qingyang & Shi, Gang & Liang, Qiao-Mei, 2024. "Techno-economic impact of electricity price mechanism and demand response on residential rooftop photovoltaic integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    4. Nilton Bispo Amado & Erick Del Bianco Pelegia & Ildo Luís Sauer, 2021. "Capacity Value from Wind and Solar Sources in Systems with Variable Dispatchable Capacity—An Application in the Brazilian Hydrothermal System," Energies, MDPI, vol. 14(11), pages 1-26, May.
    5. Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Xu, Wenya & Wang, Zixuan, 2022. "Operational performance and grid-support assessment of distributed flexibility practices among residential prosumers under high PV penetration," Energy, Elsevier, vol. 238(PB).
    6. Zhao, Mingzhe & Wang, Yimin & Wang, Xuebin & Chang, Jianxia & Chen, Yunhua & Zhou, Yong & Guo, Aijun, 2022. "Flexibility evaluation of wind-PV-hydro multi-energy complementary base considering the compensation ability of cascade hydropower stations," Applied Energy, Elsevier, vol. 315(C).
    7. Xiaoyi Zhang & Weijun Gao & Yanxue Li & Zixuan Wang & Yoshiaki Ushifusa & Yingjun Ruan, 2021. "Operational Performance and Load Flexibility Analysis of Japanese Zero Energy House," IJERPH, MDPI, vol. 18(13), pages 1-19, June.
    8. Xu, Tingting & Gao, Weijun & Qian, Fanyue & Li, Yanxue, 2022. "The implementation limitation of variable renewable energies and its impacts on the public power grid," Energy, Elsevier, vol. 239(PA).
    9. Rehman, Obaid Ur & Khan, Shahid A. & Javaid, Nadeem, 2021. "Decoupled building-to-transmission-network for frequency support in PV systems dominated grid," Renewable Energy, Elsevier, vol. 178(C), pages 930-945.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maeder, Mattia & Weiss, Olga & Boulouchos, Konstantinos, 2021. "Assessing the need for flexibility technologies in decarbonized power systems: A new model applied to Central Europe," Applied Energy, Elsevier, vol. 282(PA).
    2. Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Xu, Wenya & Wang, Zixuan, 2022. "Operational performance and grid-support assessment of distributed flexibility practices among residential prosumers under high PV penetration," Energy, Elsevier, vol. 238(PB).
    3. McDonagh, Shane & Deane, Paul & Rajendran, Karthik & Murphy, Jerry D., 2019. "Are electrofuels a sustainable transport fuel? Analysis of the effect of controls on carbon, curtailment, and cost of hydrogen," Applied Energy, Elsevier, vol. 247(C), pages 716-730.
    4. Thomaßen, Georg & Redl, Christian & Bruckner, Thomas, 2022. "Will the energy-only market collapse? On market dynamics in low-carbon electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    5. Janke, Leandro & McDonagh, Shane & Weinrich, Sören & Murphy, Jerry & Nilsson, Daniel & Hansson, Per-Anders & Nordberg, Åke, 2020. "Optimizing power-to-H2 participation in the Nord Pool electricity market: Effects of different bidding strategies on plant operation," Renewable Energy, Elsevier, vol. 156(C), pages 820-836.
    6. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    7. Perera, A.T.D. & Nik, Vahid M. & Wickramasinghe, P.U. & Scartezzini, Jean-Louis, 2019. "Redefining energy system flexibility for distributed energy system design," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    8. Gharibvand, Hossein & Gharehpetian, G.B. & Anvari-Moghaddam, A., 2024. "A survey on microgrid flexibility resources, evaluation metrics and energy storage effects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 201(C).
    9. Wang, Zhu & Liu, Ming & Zhao, Yongliang & Wang, Chaoyang & Chong, Daotong & Yan, Junjie, 2020. "Flexibility and efficiency enhancement for double-reheat coal-fired power plants by control optimization considering boiler heat storage," Energy, Elsevier, vol. 201(C).
    10. Sam Wilkinson & Michele John & Gregory M. Morrison, 2021. "Rooftop PV and the Renewable Energy Transition; a Review of Driving Forces and Analytical Frameworks," Sustainability, MDPI, vol. 13(10), pages 1-25, May.
    11. Li, Yanxue & Gao, Weijun & Ruan, Yingjun & Ushifusa, Yoshiaki, 2018. "The performance investigation of increasing share of photovoltaic generation in the public grid with pump hydro storage dispatch system, a case study in Japan," Energy, Elsevier, vol. 164(C), pages 811-821.
    12. Wilkinson, Sam & Maticka, Martin J. & Liu, Yue & John, Michele, 2021. "The duck curve in a drying pond: The impact of rooftop PV on the Western Australian electricity market transition," Utilities Policy, Elsevier, vol. 71(C).
    13. Macedo, Daniela Pereira & Marques, António Cardoso & Damette, Olivier, 2020. "The impact of the integration of renewable energy sources in the electricity price formation: is the Merit-Order Effect occurring in Portugal?," Utilities Policy, Elsevier, vol. 66(C).
    14. McDonagh, Shane & Ahmed, Shorif & Desmond, Cian & Murphy, Jerry D, 2020. "Hydrogen from offshore wind: Investor perspective on the profitability of a hybrid system including for curtailment," Applied Energy, Elsevier, vol. 265(C).
    15. Eising, Manuel & Hobbie, Hannes & Möst, Dominik, 2020. "Future wind and solar power market values in Germany — Evidence of spatial and technological dependencies?," Energy Economics, Elsevier, vol. 86(C).
    16. Liu, Ming & Wang, Shan & Zhao, Yongliang & Tang, Haiyu & Yan, Junjie, 2019. "Heat–power decoupling technologies for coal-fired CHP plants: Operation flexibility and thermodynamic performance," Energy, Elsevier, vol. 188(C).
    17. Flottmann, Jonty H. & Akimov, Alexandr & Simshauser, Paul, 2022. "Firming merchant renewable generators in Australia’s National Electricity Market," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 262-276.
    18. Harder, Nick & Qussous, Ramiz & Weidlich, Anke, 2020. "The cost of providing operational flexibility from distributed energy resources," Applied Energy, Elsevier, vol. 279(C).
    19. Nik, Vahid M. & Moazami, Amin, 2021. "Using collective intelligence to enhance demand flexibility and climate resilience in urban areas," Applied Energy, Elsevier, vol. 281(C).
    20. Brouwer, Anne Sjoerd & van den Broek, Machteld & Zappa, William & Turkenburg, Wim C. & Faaij, André, 2016. "Least-cost options for integrating intermittent renewables in low-carbon power systems," Applied Energy, Elsevier, vol. 161(C), pages 48-74.

    More about this item

    Keywords

    Capacity credit; Grid flexibility; Spot trading price; P2H; P2G;
    All these keywords.

    JEL classification:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:159:y:2020:i:c:p:908-919. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.