Power System Flexibility
Summary
Executive Summary
Power systems worldwide are undergoing significant transformations, driven by the increasing availability of low-cost variable renewable energy (VRE), the deployment of distributed energy resources (DER), advancements in digitalization, and growing opportunities for electrification. These changes can be managed through the process of power system transformation (PST).
Key Points:
- System Flexibility: The ability of a power system to reliably and cost-effectively manage the variability and uncertainty of demand and supply across all relevant timescales.
- Challenges and Opportunities: Challenges include managing the variability of VRE and integrating DER. Opportunities involve leveraging existing assets and implementing new strategies.
- Policy, Regulatory, and Market Instruments: Various instruments can be applied to enhance system flexibility, including modifications to energy strategies, legal frameworks, policies, regulatory frameworks, market rules, system operation protocols, and connection codes.
Introduction
Power systems are experiencing significant changes due to the increasing availability of VRE, deployment of DER, digitalization advancements, and opportunities for electrification. PST involves creating policy, market, and regulatory environments to accelerate investment, innovation, and the use of smart, efficient, resilient, and environmentally sound technologies.
Key Points:
- Power System Transformation (PST): A process of creating supportive environments to facilitate changes in the power sector.
- Global Priority: System flexibility is a global priority, enabling cleaner, more reliable, resilient, and affordable energy.
- Examples: Successful management of modern power systems includes lessons from countries like Australia, the UK, the US, and the EU's Electricity Directives.
Key Assets for Flexibility
- Conventional Power Plants: Predominant source of system flexibility.
- Variable Renewable Energy (VRE): Wind and solar power plants are emerging as flexibility resources. Countries like Australia, Ireland, Spain, and the US have introduced market reforms and regulations to activate VRE flexibility.
- Electricity Networks: Critical enablers of system flexibility. Policy and regulatory instruments can de-risk new network investments and promote "system-friendly" deployment of VRE.
- Energy Storage: Battery energy storage systems (BESS) are becoming cost-competitive flexibility providers. Regulations can accelerate BESS deployment and ensure participation in the power system.
- Distributed Energy Resources (DER): Offer significant flexibility potential but may require market and regulatory reforms. Innovative approaches, such as virtual power plants, are emerging to enable DER aggregation.
Conclusion
Enhancing system flexibility is crucial for managing the variability of VRE and integrating DER. Effective policy, regulatory, and market instruments can accelerate PST and ensure all power system assets receive fair remuneration for their flexibility services. Examples from various countries demonstrate the importance of proactive policy making and innovative regulations to enable DER and streamline their integration into the power system.
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