Transcript Document
Wind in Ireland Integration and cost issues David Milborrow [email protected] Author’s previous encounters in Ireland • Participated with ESB and other EU utilities in EC-funded studies of wind impacts c.1988 • Member of Advisory Panel which selected turbines for Bellacorick, 1990/91 • Invited speaker at IWEA Conference, 1996 • Adviser to developer based in Co Cork on several windfarms (some now built) since 1994 • No permanent affiliations! Scope of talk • Assimilating wind Issues? Problems? Costs? Limits? • Extra costs to consumers of adding wind Sensitivities? Very brief economic interlude • Much interest in “Extra cost of renewables” • Justified by “External costs” of thermal sources, esp Global Warming Wind and the competition PUBLIC SECTOR Wind Offshore Gas Coal Nuclear PRIVATE SECTOR Wind Offshore Gas Coal Nuclear Minimum Range 0 20 40 60 80 Generation cost, US$/MWh Source: Author, Windpower Monthly, January 2004 100 Levelling the playing field • Generation cost comparisons not the whole story • Value of wind = Fuel saving value + CAPACITY SAVING value + “embedded benefits” + “green value” - costs of backup • Embedded benefits may be positive or negative Who has looked at integration issues? • • • Ireland ESB (1990), CEGB, and other EU utilities, as part of coordinated study IWEA, “Geographical dispersion of wind in Ireland”, 1999 Garrad Hassan “Impacts” study, 2003 University College, Dublin UK DTI/Carbon Trust Network Study, Intermittency Module, has c.40 worldwide refs back to 1980 Grid operators: Eltra, NGT, Nordel, and US utilities Ireland is different • Could be first self-contained electricity system to operate with significant wind input Denmark is not isolated, but source of useful data, as W Denmark system similar in size W Denmark currently runs with wind supplying ~20% of consumption Ties with neighbours mean that effective wind supply is about 10% - still respectable! Integration topics • Electricity networks • Behaviour of wind plant • Assimilating wind into networks Storage Capacity credit • Transmission issues • The future Electricity systems Why integrated systems? • • • • • Smoothing Demands Generation sources Peak/average House: 15 UK: 1.5 Lower plant margins needed House: at least 2*peak Large electricity system: ~1.2* peak All leads to LEAST COSTS Benefits of integrated systems Peak demand/average; plant needs/average 10 8 Plant 6 Peak 4 3 2 1.4 1 1 10 100 1,000 Average demand, MW 10,000 100,000 Lessons from western Denmark System demand, MW 4,500 EI 4,000 DK 3,500 3,000 2,500 2,000 1,500 0 50 100 150 Time in hours from 1.2.04, 00:00 200 Scheduling errors Scheduling error, % 4 3 2 1 0 -1 -2 -3 -4 0 5 Source: Electricity Pool Standard deviation: 1.6% 10 15 20 Day of month (November 1995) 25 30 Coping with demand variations • Generator inertia • Frequency & voltage changes • Demand management • Pumped storage • Spinning reserve • All can cope with demand increase or decrease Wind characteristics Smoothing makes a difference Wind output, MW 1,000 Single farm 800 Distributed farms 600 400 200 0 0 5 10 15 Time, hours 20 Smoothing of power swings Time, % 10 1 farm 1 Western Denmark 0.1 0.01 -100 -50 0 50 Change, % rated capacity Time interval: 1 hour 100 Impacts of 20% wind Time, % 30 10 Demand - wind 3 Demand 1 0.3 0.1 0.03 -400 -200 400 200 0 Intra-hourly load change, MW 600 800 Running electricity systems • Managing electricity systems is all about managing risks • All estimates of uncertainty come with a range of probabilities, and • Uncertainty margins do not add arithmetically – a “sum of squares” law applies Estimating the effects of wind • Establish “demand prediction error” for electricity system UK system, 1 hour ahead, ~ 1.3%, or 400 MW Irish system: similar %, ~40 MW • Estimate “demand prediction” error for wind Typically ~3% standard error for distributed wind, 1 hour ahead, (“persistence” forecast) • Error with wind, based on “sum of squares” Costing the effects of wind • Scheduling error with wind enables extra reserve capacity needs to be estimated • Establish cost of extra reserve, based on Reduced efficiency of part-loaded plant Cost of plant, or, Market rates Extra back-up capacity Back-up capacity/wind capacity, % 10 Ireland (Doherty) 8 NREL Persistence 6 Perfect 4 US (BPA) Author Upper 2 0 0 10 20 30 40 Wind capacity/peak demand, % 50 Lower Extra costs for backup Cost of extra balancing, $/MWh 5 UK NGC 4 Ilex 3 PacifiCorp 2 BPA Max 1 Min 0 EPRI/ Xcel et al 0 2 4 6 Wind Energy penetration, % 8 10 Storage • "Renewables need storage" ? Rather misleading! • Only the intermittent sources • "Storage can transform the economics of the intermittent renewables" ? • Only if they are very low cost! • Several studies have concluded that economics must be studied separately; may be useful to system, or as reserve Capacity credits The “Firm power” issue + + = ? Capacity credits • Controversial, despite • Most authoritative studies confirm wind HAS a capacity credit. Includes Ireland • Note that definitions a muddle Some refer to firm power, some to thermal plant Firm power is less than rated capacity – For ALL types of plant!! Evaluating capacity credits • 2 basic methods:• Establish system LOLP - usually over a year • Add wind • Subtract firm power to restore original LOLP • Or (simplified approach, essentially similar) • Examine availability of wind at time(s) of peak demand Capacity credits depend on:• Amount of wind on system • Wind speeds • Wind turbine types • Winds at time of peak demand • Utility operating procedures When “normalised” for differences in wind speed, good agreement between most estimates for northern Europe Capacity credits – EU studies DE DK ES F GR IR IT NL P UK Capacity credit/rated power 0.4 0.3 0.2 0.1 0 2 4 6 8 10 12 Energy penetration, % 14 16 Capacity credits for Ireland Capacity credit/annual capacity factor 1.4 ESB, 1990 4 sites 1.2 1 site 1 UK 0.8 ESB, 2004 0.6 0.4 0 5 10 Wind energy penetration, % 15 Capacity credits: monetary values • These depend on:• Alternative thermal plant • Test discount rates and depreciation times • CCGT plant now most common thermal option in EU, costs €500-800/kW • Capacity valued at €42-83/kW • No "universal" value Benefits of distributed generation • Reduced losses • Improved reliability, + technical issues • Reduced costs if line reinforcements can be deferred or forgotten BUT • Siting is important • too much DG in remote areas will increase losses • or may advance need for line reinforcements Local issues • Analysis of Delabole wind farm (UK) by SWEB showed:- No problems with flicker Peak demands at local substation coincided with peak output from wind farm Wind farm output "has major influence in stabilising the 11 kV voltage level" • Analysis by P G & E also showed benefits from PV installation Wind integration – conclusions • Modest costs for extra reserve Most studies yield similar results • Capacity credits? – Yes, roughly=average power • Problem areas? May be preferable, once wind input exceeds ~10%, to curtail wind output on a few occasions • …..but wind will NEVER impose “jolts” on the system comparable with loss of a circuit of cross-channel link Carbon savings from renewables • Variety of answers in literature: Due to average emissions from plant mix Due to gas plant which will not be built Due to emissions from load following (lf) plant • In daily operations, wind displaces lf plant • New renewables build forces closure of old thermal • • (usually coal) plant, just as new gas Gas plant not built? How can you be sure? So another argument in favour of 600-850g/kWh from closure of old coal (or oil) plant Extra costs of renewables • Increasing interest in “extra costs” as States define renewable targets • Estimates of extra costs from various sources • Author linked to estimate in Power UK, issue 109: ~0.3p/kWh to consumer bills for 20% wind by 2020 • Key issues: Gas prices by 2020 Wind plant costs Price of carbon under ETS Possible future Irish scenarios System 5000 MW Wind % 5 5000 5000 6500 6500 6500 10 16 12 20 27 Wind 500 MW Offshore 25 % Date 2005 1000 1500 1500 2500 3500 30 40 40 45 50 2008 2010 2010 2017 2025 Source of base data (green): ESBNG; author’s assumptions in red Future gas prices Gas price to electricity generators, $/MWh 22 20 18 16 14 12 2000 2005 2010 2015 Year Source: US DoE, Annual Energy Outlook, 2004 2020 2025 Future wind prices Installed price, $/kW 1,100 IOWA Reference 1,000 900 Low 800 700 Trends continue 600 DEWI 500 400 2000 REPP 2005 2010 Year 2015 2020 EWEA Possible costs to electricity consumers of adding wind Extra cost, €/MWh 1 0.8 0.6 0.4 0.2 0 -0.2 -0.4 -0.6 2005 2010 US DoE gas price trends No allowance for costs under ETS 2015 Year 2020 2025 Thank you! 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