Renewable EnergyIntegration

Practical Management of Variability,Uncertainty, and Flexibility

in Power Grids

Second Edition

Edited by

Lawrence E. Jones

ELSEVIER® ACADEMIC PRESSAn imprint of Elsevier

Contents

About the Editor xxxiii

About the Contributors xxxv

Foreword from the USA xlv

Foreword from Europe xlvii

Foreword from United Arab Emirates xlix

Foreword from Europe (First Edition) li

Foreword from the USA (First Edition) lv

Acknowledgments lviiIntroduction lxi

PART 1 POLICY AND REGULATION

CHAPTER 1 The Journey of Reinventing the European Electricity Landscape 3Helena Lindquist

1. Background 3

2. The Energy Union 4

3. Renewable integration in Europe—challenges and policy responses 6

3.1 Locational constraints and renewable integration 6

3.2 Cross-border interconnections 8

3.3 Market design 9

4. Trends and future outlook 10

References 12

CHAPTER 2 Policies for Accommodating Higher Penetration of Variable

Energy Resources (VERs)—U.S. Outlook and Perspectives 15

Steve Fine, Patricia D'Costa, Kiran Kumaraswamy

1. Recent renewable deployment trends 151.1 Federal policy impacting growth—renewable electricity production

tax credit 16

1.2 State policy impacting growth—renewable portfolio standards 17

2. Technical challenges posed by wind generation for power system operation

and planning 17

3. Economic challenges associated with high wind energy—the potential for

curtailment 19

3.1 The repercussions of discarded energy 20

4. Transmission development for wind integration—challenges and

success stories 21

4.1 State policy examples to incentivize transmission system development

to accommodate renewable generation 22

xvii

xviii CONTENTS

5. FERC Order 764 on VER Integration 25

6. The future of renewable development in the United States 26

References 26

CHAPTER 3 Harnessing and Integrating Africa's Renewable

Energy Resources 27

Ijeoma Onyeji-Nwogu

1. Introduction 27

2. Background and context 27

2.1 Africa's energy challenge 27

2.2 Availability of natural resources 283. Sub-Saharan Africa in the global energy transition 30

3.1 Falling technology costs 303.2 A good fit 31

4. The way forward 31

4.1 Financing 31

4.2 Regional cooperation: electricity markets, power pools, and

grid infrastructure 334.3 Renewable energy support policies 34

4.4 Innovative business models 35

5. Conclusion 36

References 36

PART 2 MODELING OF VARIABLE ENERGY RESOURCES

CHAPTER 4 Multi-Dimensional, Multi-Scale Modeling and Algorithms for

Integrating Variable Energy Resources in Power Networks:Challenges and Opportunities 41

Santiago Grijalva

1. Power system dimensions and scales 41

1.1 The spatial dimension 41

1.2 The temporal dimension 43

1.3 The scenario dimension 43

1.4 Power system scales 44

2. Modeling and analysis 44

2.1 Multiple scales and scale invariance 44

2.2 Multi-scale frameworks 45

2.3 Inference and system identification 46

3. Optimization and control 46

CONTENTS xix

4. Data handling and visualization 47

4.1 Multi-scale data 47

4.2 Visualization 48

5. Integrated multi-dimensional analytics platforms 48

6. Conclusions 50

References 51

CHAPTER 5 Scandinavian Experience of Integrating Wind Generationin Electricity Markets 55

Anders Plejdrup Houm0ller

1. Introduction 55

2. The transmission system operators 56

3. The Baltic-Nordic spot market 57

4. Price zones 58

5. Day-ahead grid congestion management: market splitting 59

5.1 Day-ahead congestion management: market coupling 59

5.2 Calculation of the spot prices with market coupling or

market splitting 605.3 Integration of wind energy in the Danish electricity market 61

6. Maintaining the security of supply: regulating energy 61

6.1 Maintaining the security of supply: regulating capacity 62

6.2 Example: 20 MW up regulating capacity bought by the TSO 62

6.3 Regulating capacity: the Danish experiences 62

7. Regulating energy and the security of supply: making the wind

turbines part of the solution 63

7.1 Example: a wind turbine providing down regulation 63

8. Other mechanisms and policies for integrating wind in electricity markets 63

8.1 Multinational markets recommendable 63

8.2 Danish subsidies for wind turbines 64

8.3 Green certificates: a market-oriented subsidy scheme for renewables 64

8.4 The Swedish-Norwegian implementation of green certificates 66

9. Efficient and nonefficient multistate markets (EU as a case) 66

10. Conclusion: The moral of the spot case from Northern Europe 68

CHAPTER 6 Case Study-Renewable Integration: Flexibility Requirement,Potential Overgeneration, and Frequency Response

Challenges 69

Mark Rothleder, Clyde Loutan

1. ISO real-time market overview 71

2. Renewable generation effects in the ISO real-time market 72

xx CONTENTS

3. Flexibility requirement 72

4. Intrahour flexibility requirement 74

5. Potential overgeneration problems 74

6. Inertia and frequency response 77

7. Sensitivities 79

References 80

PART 3 VARIABLE ENERGY RESOURCES IN POWER SYSTEM AND

MARKET OPERATIONS

CHAPTER 7 Analyzing the Impact of Variable Energy Resources onPower System Reserves 85

Brendan Kirby, Erik Ela, Michael Milligan

1. Reserve types 85

1.1 Nonlinear reserve requirements 88

1.2 Reserve requirements vary in time 89

2. Reserves and energy markets 89

3. European vs North American reserve definitions 89

3.1 Primary reserves 91

3.2 Secondary reserves 91

3.3 Tertiary reserves 924. Probabilistic methods for setting reserve requirements 92

5. Determining VER impacts on reserve requirements through power

system modeling 92

5.1 Eastern wind integration and transmission study 94

5.2 Western wind and solar integration study 96

6. Discussion 98

7. Summary 99

References 100

CHAPTER 8 Advances in Market Management Solutions for Variable

Energy Resources Integration 103

Xing Wang

1. Introduction 103

2. Wholesale electricity markets and market management systems overview 103

3. Market operation challenges from VER integration 108

4. Advances in market management solutions for VER integration 109

4.1 Establish a ramp market for VER integration 110

4.2 Managing VER uncertainty with robust and stochastic unit commitment 113

5. Conclusion 117

References 118

CONTENTS xxi

CHAPTER 9 Integrating Renewables in Australia: Policies, Market Design,and System Operations 119

Ian McLeod

1. Background 119

1.1 Formation of the National Energy Market 119

1.2 Cheap fuel and generation fuel growth 120

1.3 The generation mix 120

1.4 Electricity's contribution to greenhouse gas emissions 121

2. Integrating renewables 121

2.1 Policy: emission reduction target 121

2.2 Retail price index (inflation adjusted)—Australian capital cities 122

2.3 Policy: Renewable Energy Target—a one dimensional solution 123

2.4 Federal Renewable Energy Target versus the states 123

2.5 Policy: Carbon Pricing Scheme 124

2.6 Grants and funding: The Australian Renewable Energy Agency

and Clean Energy Finance Corporation 124

3. Integrating renewable technologies 125

3.1 Hydro 125

3.2 Wind 125

3.3 Biomass 126

3.4 Large-scale solar 126

3.5 Beyond the meter: rooftop solar 126

4. Integration: where markets meet policy and subsidies 128

5. The summer of 2016/2017 128

PART 4 FORECASTING RENEWABLES

CHAPTER 10 Forecasting Renewable Energy for Grid Operations 133

Audun Botterud

1. Introduction 133

2. Forecast applications in grid operations 133

2.1 Grid system operators 133

2.2 Wind and solar power producers 135

2.3 Other market participants 136

3. Forecasting wind and solar energy: the basics 137

3.1 Wind power forecasting 137

3.2 Solar power forecasting 138

4. Emerging forecasting products 138

4.1 Probabilistic forecasts 139

4.2 Ramp forecasts 139

4.3 Net load forecasts 139

xxii CONTENTS

5. Looking ahead 140

Acknowledgments 141

References 141

CHAPTER 11 Incorporating Forecast Uncertainty in Utility Control

Center 145

Yuri V. Makarov, Pavel V. Etingov, Man Ma

1. Introduction 145

2. Sources of uncertainty and variability 1462.1 Load forecast errors 146

2.2 Wind power forecast errors 146

2.3 Solar generation forecast errors 147

2.4 Forced generation outages 148

2.5 Uninstructed deviation errors 149

2.6 Discretization errors 150

3. Overall uncertainty characteristics 150

3.1 Balancing requirement 1503.2 Nonparametric nature of balancing requirement 1513.3 Autocorrelation, cross-correlation and nonstationary nature of

forecast errors 152

4. Probabilistic operations and planning 152

5. Three levels of uncertainty integration in operations 153

6. Example: California ISO ramp uncertainty prediction tool 153

7. Conclusions 155

References 156

PART 5 CONNECTING RENEWABLE ENERGY TO POWER GRIDS

CHAPTER 12 Global Power Grids for Harnessing World Renewable

Energy 161

Spyros Chatzivasileiadis, Damien Ernst, Goran Andersson

1. Introduction 161

2. Stages toward a global power grid 1623. The global grid: an illustration 163

4. Harvesting RESs from remote locations 163

5. Interconnecting two continents over remote RES locations 166

5.1 Offering RES power at peak prices 166

5.2 Intercontinental electricity trade 167

6. Intercontinental interconnections by direct lines 168

CONTENTS xxiii

7. Discussion 168

7.1 Minimizing power reserves 168

7.2 Alleviating the storage problem 169

7.3 Additional benefits 169

8. Conclusions 169

Appendix A. Cable cost projections 170

Appendix B. Electricity trade between Europe and the USA: detailed analysis.... 171

Appendix B.l Direct submarine cable 171

Appendix B.2 Connecting Europe with the USA through a wind farm

in Greenland 172

References 173

CHAPTER 13 Practical Management of Variable and Distributed Resources

in Power Grids 175

Carl Barker

1. Preface 175

2. The early history of high-voltage direct current transmission 175

3. HVDC for cable transmission 177

4. HVDC for bulk power transmission 178

5. Improved stability of the AC system by introducing HVDC 180

6. Voltage source converter versus line commutated converter 181

7. Large-scale variable generation integration 183

8. Taking DC to lower power transmission levels 186

9. Conclusion 186

References 187

CHAPTER 14 Integrating New and Renewable Energy in the

GCC Region 189

Ahmed Al-Ebrahim

1. Background: demand challenges and changing environment in the

Gulf Cooperation Council 189

1.1 Energy efficiency through renewable penetration 189

1.2 The introduction of nuclear power in the GCC power mix 190

2. The GCC interconnection super grid 191

2.1 Support to GCC grids through the GCC Interconnector 191

2.2 Optimizing the investment and operations costs through the GCC

Interconnector 191

3. Utilizing the GCC interconnection HVDC link for increasing securing

of supply and managing variability 193

3.1 Objectives of the GCCIA HVDC scheme 194

3.2 The DRPS mode of the HVDC station 195

3.3 Frequency control mode of the HVDC converter station 196

xxiv CONTENTS

4 Facilitating the integration of renewable energy in the GCC

and beyond 196

Reference 197

PART 6 SYSTEM FLEXIBILITY

CHAPTER 15 Operational Flexibility of Power Systems 201Andreas Ulbig, Matthias A. Bucher, Goran Andersson

1. Operational flexibility in power systems 201

2. Definition and metrics of operational flexibility 203

3. Modeling power system flexibility via the power nodes modeling

framework 205

4. Assessment and visualization of operational flexibility 207

4.1 Analytic quantification of operational flexibility 2074.2 Reach-set quantification of operational flexibility 208

5. Aggregation of operational flexibility 210

5.1 Aggregation of operational flexibility for power systems without

transmission constraints 211

5.2 Aggregation of operational flexibility for power systems with

transmission constraints 213

6. Conclusion 214

References 216

CHAPTER 16 Grid Integration of Renewables in India 217

Sushil K. Soonee, K.V.S. Baba, S.R. Narasimhan, S.C. Saxena, Mohit Joshi,

K.V.N. Pawan Kumar

1. Introduction 217

2. Policy initiatives 2183. Regulatory initiatives 2214. Transmission initiatives 224

5. Grid management initiatives 227

6. Concluding remarks 228

References 228

CHAPTER 17 The Danish Case: Taking Advantage of Flexible Power inan Energy System with High Wind Penetration 231

Sune Str0m, Anders N. Andersen

1. Introduction 231

2. Distribution of generator capacity in Denmark 232

3. The Danish markets for balancing the electricity system 232

CONTENTS xxv

4. Wind is a part of the balancing solution—not the problem 233

5. Case example: an hour with negative prices for downward regulation 235

5.1 Challenges to participation in the tertiary reserve market 239

6. Decentralized combined heat and power plants are a part of the

balancing solution 239

7. Conclusions and recommendations based on the Danish experience 241

PART 7 DEMAND RESPONSE AND DISTRIBUTED ENERGY RESOURCES

CHAPTER 18 DM for Integrating Variable Renewable Energy: A Northwest

Perspective 245

Ken Dragoon

1. Role of demand management in integrating variable energy resources 245

2. DM in the Northwest today 249

2.1 Utility-sponsored DM programs 249

2.2 DM and integration of renewable energy: demonstration projects 250

3. Future of DM in the Northwest 254

3.1 District energy 255

3.2 Industrial programs 255

3.3 Residential and commercial programs 256

3.4 Role of market prices and structures 256

3.5 Policy opportunities 257

4. Thoughts on the way forward 258

References 259

CHAPTER 19 Case Study: Demand-Response and Alternative Technologiesin Electricity Markets 261

Andrew L. Ott

1. Overview of PJM wholesale market 261

2. Opportunities for demand-response in the wholesale market 262

2.1 Emergency demand-response: capacity market 263

2.2 Economic demand-response: real-time market and day-ahead

market 263

2.3 Ancillary service markets: day-ahead scheduling reserves,

synchronized reserves, and frequency regulation 263

3. PJM experience with demand-response 264

3.1 Emergency demand-response 264

3.2 Economic demand-response 266

3.3 Ancillary services markets 267

xxvi CONTENTS

4. Experience with alternative technologies in the wholesale market 269

5. Potential future evolution for demand-response and alternative technologies 269

CHAPTER 20 The Implications of Distributed Energy Resources

on Traditional Utility Business Model 271

Fereidoon P. Sioshansi

1. The evolution of traditional utility business model 2712. Gradual transformation of the ESI 272

3. Why the rise of distributed energy resources? 273

4. Rethinking the fundamentals 275

5. New definition of service 276

6. Responding to disruptive technologies 277

7. Conclusions 278

PART 8 ENERGY STORAGE

CHAPTER 21 Energy Storage in the United States 281

Richard McMahon, Lola Infante

1. Introduction 281

2. Will energy storage be a game changer and revolutionize the electric

power sector? 281

2.1 The transformation of the U.S. electric power sector 282

2.2 The benefit of storing electricity 2843. Bringing barriers down: facilitating market access and building financial

viability while improving reliability 2883.1 Access to markets 289

3.2 The business case—costs and revenue streams 289

4. Conclusion: a better way to promote change in the electric power sector? 291

References 292

CHAPTER 22 Salisbury Residential Battery Trial 293

Mark Vincent, Harry Colebourn

1. The South Australian context 293

2. Emerging technology 2943. Battery and solar PV economics 295

4. Objectives of the Salisbury trial 297

5. Design of the Salisbury trial 298

5.1 Customer recruitment for the trial 299

5.2 Customer installations 299

5.3 Equipment supplied 3005.4 Installation issues 301

CONTENTS xxvii

6. Trial outcomes 301

7. Towards implementing battery storage integration 3027.1 Realizing the value of battery storage integration 3027.2 Network tariff design 303

8. Salisbury trial observations 307References 308

CHAPTER 23 Energy Storage and the Need for Flexibility on the Grid 309David Mohler, Daniel Sowder

1. Energy storage as an integral part of the grid 3112. An ecosystem of technologies enabling flexibility 312

2.1 Example 1 3132.2 Example 2 314

2.3 Example 3 314

2.4 Example 4 316

3. Conclusions 316

PART 9 VARIABLE ENERGY RESOURCES IN ISLAND

POWER SYSTEMS

CHAPTER 24 Renewables Integration on Islands 319

Toshiki Bruce Tsuchida

1. Introduction 319

2. Lessons from renewable integration in larger systems 320

3. Small scale of islands magnifies the challenges 322

4. Change in approach 326

5. Conclusion 328

References 329

CHAPTER 25 Intentional Islanding of Distribution Network Operationwith Mini Hydrogeneration 33i

Glauco Nery Taranto, Tatiana M.L. Assis

1. Introduction 331

2. Case study 3312.1 System description 331

2.2 Modeling aspects 331

3. Intentional islanding 333

3.1 Islanding detection and change in the control modes 333

3.2 Islanding formation 335

xxviii CONTENTS

3.3 Microgrid autonomous operation 339

3.4 Reconnection 342

4. Conclusions 347

References 348

PART 10 SOLAR ENERGY INTEGRATION

CHAPTER 26 Economic and Reliability Benefits of Solar Plants 351

Udi Helman

1. Introduction 351

2. Technology categories and production characteristics 352

2.1 Photovoltaics 353

2.2 Concentrating solar power 353

2.3 Dispatchable solar without storage 3532.4 Solar with storage 354

3. Overview of valuation methods 354

3.1 Resource costs 356

3.2 Calculation of economic value 358

3.3 Methods for scenario development and baselines for measurement

of benefits 359

4. Survey of research and operational results 360

4.1 Capacity benefits 360

4.2 Energy benefits 364

4.3 Ancillary service benefits 366

4.4 Integration and curtailment costs 366

4.5 Total economic benefits 368

5. Conclusions 368

References 369

CHAPTER 27 German Renewable Energy Sources Pathway in theNew Century 373

Matthias Muller-Mienack

1. Introduction 373

2. Increasing challenges of RES integration into the German electricity system 374

3. Future outlook 380

References 381

CONTENTS xxix

PART 11 ENABLING AND DISRUPTIVE TECHNOLOGIES FOR

RENEWABLE INTEGRATION

CHAPTER 28 Control of Power Systems with High Penetration VariableGeneration 385

Christopher L. DeMarco, Chaitanya A. Baone

1. Introduction and motivation 385

2. The case for advanced control methodologies 386

3. The roles of inertial response, primary control, and secondary control: pastand future 386

4. Frequency regulation in power systems 387

4.1 Frequency regulation with emerging grid technologies 3874.2 Western electricity coordinating council wind turbine generator

system model 388

4.3 Supplemental primary control: model of power delivery from

battery storage 388

4.4 Model of wide area electromechanical dynamics for control design 388

5. Optimal control design 3896. Distributed control design for practical implementation 3907. Case study results: multiobjective evaluation of optimal control performance 391

8. Conclusions 393

References 394

CHAPTER 29 Enhancing Situation Awareness in Power Systems:Overcoming Uncertainty and Variability with RenewableResources 395

Mica R. Endsley, Erik S. Connors

1. Introduction 395

1.1 What is situation awareness? Why is it important? 396

1.2 Challenges for SA 397

1.3 Industry trends and SA 400

2. Optimizing situation awareness in power system tool designs 401

3. The future of SA in grid operations 402

References 403

CHAPTER 30 Managing Operational Uncertainty through ImprovedVisualization Tools in Control Centers with Reference to

Renewable Energy Providers 405

Richard Candy

1. Introduction 405

2. Background on SCADA, remote terminal units, and protocols 405

xxx CONTENTS

3. Current IEC 60870-5-101 situation 406

4. SCADA alarm processing 406

4.1 Additional problems—environmental and renewable energy producers

impacts 4074.2 Ring fencing 407

5. Situational awareness platform 4085.1 Object orientation 409

5.2 Static objects 409

5.3 Column objects 410

5.4 Dynamic objects 411

5.5 Applications 411

5.6 Visualization architecture 411

6. Abnormal state notification 412

7. Benefits of situational awareness visualization platforms 414

7.1 Examples 415

7.2 Application to renewable energy integration 415

8. Conclusion 416

Items 1, 2, and 3 416

Items 4 and 5 417

Item 6 417

References 417

CHAPTER 31 Monitoring and Control of Renewable Energy Sources

using Synchronized Phasor Measurements 419

Luigi Vanfretti, Maxime Baudette, Austin D. White

1. Introduction 419

2. Real-time monitoring using synchrophasors 420

2.1 Wide area monitoring systems 420

2.2 Fast prototyping environment for PMU software applications 422

3. Detection tools for wind farm oscillation monitoring 425

3.1 Monitoring tool at SmarTS Lab 425

3.2 Oklahoma Gas & Electric 427

4. Testing and validation 428

4.1 SmarTS Lab 428

4.2 Validation of the OG&E FFT detection program 429

5. Conclusions 430

Acknowledgments 432

References 432

CONTENTS xxxi

CHAPTER 32 Every Moment Counts: Synchrophasors for Distribution

Networks with Variable Resources 435

Alexandra von Meier, Reza Arghandeh

1. Introduction 435

2. Variability, uncertainty, and flexibility in distribution networks 435

3. Microsynchrophasor technology 437

4. Applications for uPMU measurements 439

5. Moving forward 442

References 443

Future Outlook 445

Index 449