Integrating Renewables in Distribution Grids: Storage, regulation and the interaction of different stakeholders in future grids

In recent years, the transition of the power supply chain towards a sustainable system based on “green” electricity generation out of renewable energy sources (RES-E) has become a main challenge for grid operators and further stakeholders in the power system. To enable the evaluation of new concepts for the integration of RES-E, first the feed-in characteristics of photovoltaic, wind and biomass generators located in a distribution grid area and based on numerous measured feed-in data are studied in this thesis. The achieved insights from the feed-in profiles can be used for the dimensioning of grid assets. Furthermore, the results are useful for the evaluation of congestion management or for the dimensioning of storage assets in distribution grids. The latter aspect is analyzed in detail such that suitable storage characteristics for an introduction in the grid are determined. An economic approach is presented to derive break-even points for storage assets as a substitute to conventional reinforcements. For a case study from a real world low voltage grid with reinforcement needs, these break-even points are determined and the main influencing parameters are evaluated. A further important question in this context concerns the role DSOs may play with the operation of decentralized storage assets since several stakeholders may be interested in using the flexibility provided by these assets. This unclear responsibility also applies to the steering of adjustable consumption devices such as electric heat pumps or electric cars. For decentralized storage assets as well as heat pump appliances, optimal operation modes based on the optimization objectives for a DSO and a trader are derived. It is shown based on real world data that choosing a ‘copperplate’ scenario is not only technically insufficient for a global balance of the consumption and generation. It may even be harmful for the society from an welfare economic point of view when not taking local grid restrictions into account. Furthermore, it is investigated in this thesis whether or not innovative investments from a grid operators’ perspective are incentivized by the grid regulation method. As shown, the regulation of grids needs to be adjusted to incentivize innovations.

[1]  A. Lerner.  The Concept of Monopoly and the Measurement of Monopoly Power , 1934 .

[2]  L. Telser.  Why Should Manufacturers Want Fair Trade? , 1960, The Journal of Law and Economics.

[3]  Claude Machline.  Principles of engineering economy , 1961 .

[4]  K. Arrow.  Economic Welfare and the Allocation of Resources for Invention , 1962 .

[5]  H. Demsetz,et al.  Why Regulate Utilities , 1968 .

[6]  E. Prescott,et al.  Investment Under Uncertainty , 1971 .

[7]  Jerome L. Stein,et al.  Behavior of the Firm Under Regulatory Constraint , 1972 .

[8]  R. Posner.  Theories of Economic Regulation , 1974 .

[9]  Joshua Ronen,et al.  Opportunity Costs-An Experimental Approach , 1974 .

[10]  Elizabeth E. Bailey,et al.  Innovation and regulation , 1974 .

[11]  V. Kerry Smith,et al.  The Implications of Regulation for Induced Technical Change , 1974 .

[12]  Wesley A. Magat,et al.  Regulation and the Rate and Direction of Induced Technical Change , 1976 .

[13]  W. Meeusen,et al.  Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error , 1977 .

[14]  노창환.  [경영학] Capital Budgeting을 논함 , 1979 .

[15]  R. Willig,et al.  Economies of scope , 1981 .

[16]  George H. Sweeney.  Adoption of Cost-Saving Innovations by a Regulated Firm , 1981 .

[17]  Ingo Vogelsang,et al.  The Sustainability Concept under Alternative Behavioral Assumptions , 1982 .

[18]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[19]  A. Shleifer,et al.  A Theory of Yardstick Competition , 1985 .

[20]  J. Tirole,et al.  Planning Under Incomplete Information and the Ratchet Effect. , 1985 .

[21]  James J. Heckman,et al.  A Test for Subadditivity of the Cost Function with an Application to the Bell System , 1986 .

[22]  A. Dixit.  Entry and Exit Decisions under Uncertainty , 1989, Journal of Political Economy.

[23]  Luís M. B. Cabral,et al.  Incentives for cost reduction under price cap regulation , 1989 .

[24]  Hans Heymann,et al.  Opportunity Cost in Finance and Accounting , 1990 .

[25]  Gerhard Clemenz,et al.  Optimal Price Cap Regulation , 1991 .

[26]  John Sutton,et al.  Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration , 1992 .

[27]  Rachel Griffith,et al.  Innovation and Market Structure , 1993 .

[28]  José Carlos Fariñas García.  Sunk costs and market structure: price competition, advertising and the evolution of concentration , 1993 .

[29]  Jean-Jacques Laffont,et al.  THE NEW ECONOMICS OF REGULATION TEN YEARS AFTER , 1994 .

[30]  A. Meyer.  Economics Of Climate Change , 1995, Nature.

[31]  Richard H. Bernhard,et al.  INVESTMENT UNDER UNCERTAINTY Princeton University Press, Princeton, New Jersey, 1994, xiv + 468 pp. ISBN 0-69I-034I0-9. List: S39.50. , 1995 .

[32]  Ziyad M. Salameh,et al.  Methodology for optimally sizing the combination of a battery bank and PV array in a wind/PV hybrid system , 1996 .

[33]  S. David Promislow,et al.  Postulates for the internal rate of return of an investment project , 1996 .

[34]  L. Lynd,et al.  Likely features and costs of mature biomass ethanol technology , 1996 .

[35]  Christian Langer,et al.  A method for the identification of configurations of PV/wind hybrid systems for the reliable supply of small loads , 1996 .

[36]  J. M. Brabant,et al.  Privatization–An Economic Analysis , 1997 .

[37]  Timothy Coelli,et al.  An Introduction to Efficiency and Productivity Analysis , 1997 .

[38]  Sigve Tjøtta,et al.  A Test for Natural Monopoly with Application to Norwegian Electricity Distribution , 1998 .

[39]  T. Van Cutsem,et al.  Voltage instability: phenomena, countermeasures, and analysis methods , 2000, Proc. IEEE.

[40]  Günter Knieps,et al.  Zwischen Regulierung und Wettbewerb , 2000 .

[41]  Takayasu Sakurai,et al.  Analysis and future trend of short-circuit power , 2000, IEEE Trans. Comput. Aided Des. Integr. Circuits Syst..

[42]  M. Pollitt,et al.  Benchmarking and regulation: international electricity experience , 2000 .

[43]  Bahri Sahin,et al.  Effects of internal irreversibility and heat leakage on the finite time thermoeconomic performance of refrigerators and heat pumps , 2000 .

[44]  M. Riordan,et al.  Dynamics of Price Regulation , 2000 .

[45]  Steven Stoft,et al.  An Analysis of FERC ’ s Huband-Spoke Market-Power Screen , 2001 .

[46]  Volker Schneider,et al.  The Privatisation of Infrastructures in the Theory of the State: An Empirical Overview and a Discussion of Competing Theoretical Explanations , 2001 .

[47]  David M Newbery,et al.  Regulatory Challenges to European Electricity Liberalisation , 2002 .

[48]  Tooraj Jamasb,et al.  REFORM AND REGULATION OF THE ELECTRICITY SECTORS IN DEVELOPING COUNTRIES , 2002 .

[49]  H. J Laue.  Regional report Europe: “heat pumps — status and trends” , 2002 .

[50]  Gert Brunekreeft,et al.  Regulation and competition policy in the electricity market : economic analysis and German experience , 2003 .

[51]  Barrett Hazeltine,et al.  Field guide to appropriate technology , 2003 .

[52]  A. U.S.,et al.  Measuring the efficiency of decision making units , 2003 .

[53]  Ladislaus Rybach,et al.  GEOTHERMAL (GROUND-SOURCE) HEAT PUMPS A WORLD OVERVIEW , 2004 .

[54]  I. Dobbs,et al.  Intertemporal Price Cap Regulation Under Uncertainty , 2004 .

[55]  I. Dobbs,et al.  Replacement Investment: Optimal Economic Life Under Uncertainty , 2004 .

[56]  J.P. Barton,et al.  Energy storage and its use with intermittent renewable energy , 2004, IEEE Transactions on Energy Conversion.

[57]  Jian Liu,et al.  Power flow analysis on simplified feeder modeling , 2004, IEEE Transactions on Power Delivery.

[58]  G. Guthrie.  Regulating Infrastructure: The Impact on Risk and Investment , 2005 .

[59]  Henrik Lund,et al.  Electric grid stability and the design of sustainable energy systems , 2005 .

[60]  Mark Armstrong,et al.  Regulation, Competition and Liberalization , 2005 .

[61]  Virendra Ajodhia,et al.  Economic regulation of quality in electricity distribution networks , 2005 .

[62]  Tooraj Jamasb,et al.  Benchmarking and incentive regulation of quality of service: an application to the UK electricity distribution networks , 2005 .

[63]  M. Pollitt,et al.  Electricity Market Reform in the European Union: Review of Progress toward Liberalization &Integration* , 2005 .

[64]  P. Cramton,et al.  A capacity market that makes sense , 2005, IEEE Power Engineering Society General Meeting, 2005.

[65]  Henrik Lund,et al.  Large-scale integration of wind power into different energy systems , 2005 .

[66]  Sofie Verbrugge,et al.  Methodology and input availability parameters for calculating OpEx and CapEx costs for realistic network scenarios , 2006 .

[67]  Nicholas Stern,et al.  Stern Review report on the economics of climate change , 2006 .

[68]  Ralph Kremp,et al.  Die Revenue Cap-Regulierung : Ein fertiges Konzept? , 2006 .

[69]  Ronnie Belmans,et al.  Vision and Strategy for Europe’s Electricity Networks of the Future: European Technology PlatformSmartGrids , 2006 .

[70]  S. Spelta,et al.  The Voltage Control on MV Distribution Networks with Aggregated DG Units (VPP) , 2006, Proceedings of the 41st International Universities Power Engineering Conference.

[71]  Henrik Lund,et al.  Large-scale integration of optimal combinations of PV, wind and wave power into the electricity supply , 2006 .

[72]  Venizelos Efthymiou,et al.  STRATEGIC RESEARCH AGENDA FOR EUROPE’S ELECTRICITY NETWORKS OF THE FUTURE: European Technology Platform SmartGrids , 2007 .

[73]  K. Visscher,et al.  Feasibility of Distributed Electricity Storage , 2007 .

[74]  A. V. D. Welle,et al.  An Overview of Selected Studies on the Value of Lost Load ( VOLL ) , 2007 .

[75]  M. Armstrong,et al.  Recent developments in the theory of regulation , 2007 .

[76]  Dieter Bender,et al.  Vahlens Kompendium der Wirtschaftstheorie und Wirtschaftspolitik , 2007 .

[77]  Holger Claussen,et al.  Financial Analysis of a Pico-Cellular Home Network Deployment , 2007, 2007 IEEE International Conference on Communications.

[78]  Liu Guang-bin,et al.  Multi-product Dynamic Break-even Analysis and Its Application , 2007, 2007 International Conference on Management Science and Engineering.

[79]  D.P. Labridis,et al.  Reliability improvement resulting from the integration of PV systems in the Interconnected Greek Transmission System , 2008, 2008 5th International Conference on the European Electricity Market.

[80]  Somchai Wongwises,et al.  Experimental study on R-134a refrigeration system using a two-phase ejector as an expansion device , 2008 .

[81]  Albert Molderink,et al.  On the three-step control methodology for smart grids , 2008 .

[82]  E O Effiong,et al.  Formulation and estimation of stochastic frontier production models in egg-laying enterprise in Akwa Ibom State, Nigeria , 2008 .

[83]  Tooraj Jamasb,et al.  Security of supply and regulation of energy networks , 2008 .

[84]  Goran Strbac,et al.  Demand side management: Benefits and challenges ☆ , 2008 .

[85]  Dirk Neumann,et al.  A Market Mechanism for Energy Allocation in Micro-CHP Grids , 2008, Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008).

[86]  P. Joskow.  Incentive Regulation and Its Application to Electricity Networks , 2008 .

[87]  M. Genoese,et al.  The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany , 2008 .

[88]  D. Westermann,et al.  Energy management for distribution networks with storage systems — A hierarchical approach , 2008, 2008 IEEE Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century.

[89]  Tooraj Jamasb,et al.  Liberalisation and R&D in network industries: The case of the electricity industry , 2008 .

[90]  G. I. Kustova,et al.  From the author , 2019, Automatic Documentation and Mathematical Linguistics.

[91]  William Goetzler,et al.  Ground-Source Heat Pumps. Overview of Market Status, Barriers to Adoption, and Options for Overcoming Barriers , 2009 .

[92]  Mohamed Kesraoui.  Designing a wind/solar/biomass electricity supply system for an Algerian isolated village , 2009, 2009 13th European Conference on Power Electronics and Applications.

[93]  Han Slootweg.  Smart Grids - the future or fantasy? , 2009 .

[94]  W. L. Kling,et al.  Technical benefits of distributed storage and load management in distribution grids , 2009, 2009 IEEE Bucharest PowerTech.

[95]  M. Nicolosi,et al.  The Impact of an increasing share of RES-E on the Conventional Power Market — The Example of Germany , 2009 .

[96]  Gerd Balzer,et al.  Condition assessment for optimal planning and operation of power systems with the aid of ageing models , 2009, 2009 IEEE Bucharest PowerTech.

[97]  Mukesh Pandey,et al.  Statistical Analysis of Solar-Wind-Biomass Hybrid System Installed at R.G.T.U., Bhopal M.P., India , 2009 .

[98]  Mark Andor,et al.  Die Bestimmung von individuellen Effizienzvorgaben — Alternativen zum Best-of-Four-Verfahren , 2009 .

[99]  Orhan Ekren,et al.  Break-even analysis and size optimization of a PV/wind hybrid energy conversion system with battery storage - A case study , 2009 .

[100]  John McGregor.  Modeling Software , 2009, J. Object Technol..

[101]  Sandra Maeding,et al.  Investment incentives in the context of revenue cap regulation , 2009 .

[102]  R. Tol.  The Economic Effects of Climate Change , 2009 .

[103]  Gilles Malarange,et al.  Energy storage systems in distribution grids: New assets to upgrade distribution network abilities , 2009 .

[104]  Ahmad Faruqui,et al.  Unlocking the €53 Billion Savings from Smart Meters in the EU - How Increasing the Adoption of Dynamic Tariffs Could Make or Break the EU’s Smart Grid Investment , 2009 .

[105]  Christian Rehtanz,et al.  Technical and economic evaluation of voltage regulation strategies for distribution grids with a high amount of fluctuating dispersed generation units , 2010, 2010 IEEE Conference on Innovative Technologies for an Efficient and Reliable Electricity Supply.

[106]  Gerard J. M. Smit,et al.  On simulating the effect on the energy efficiency of smart grid technologies , 2010, Proceedings of the 2010 Winter Simulation Conference.

[107]  M. A. Redfern,et al.  A review of voltage control techniques of networks with distributed generations using On-Load Tap Changer transformers , 2010, 45th International Universities Power Engineering Conference UPEC2010.

[108]  P.K. Sen,et al.  An overview of energy storage technologies in electric power systems: What is the future? , 2010, North American Power Symposium 2010.

[109]  Kenneth S. Smith,et al.  Smart Grid technology review within the Transmission and Distribution sector , 2010, 2010 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT Europe).

[110]  Albert Molderink,et al.  A three-step methodology to improve domestic energy efficiency , 2010, 2010 Innovative Smart Grid Technologies (ISGT).

[111]  Stephen Littlechild,et al.  Comparing electricity distribution network revenues and costs in New South Wales, Great Britain and Victoria , 2010 .

[112]  Anna Ter-Martirosyan,et al.  Incentive regulation, service quality, and standards in U.S. electricity distribution , 2010 .

[113]  Christian Rehtanz,et al.  Effects of Demand Side Management on the planning and operation of distribution grids , 2010, 2010 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT Europe).

[114]  Khosrow Moslehi,et al.  A Reliability Perspective of the Smart Grid , 2010, IEEE Transactions on Smart Grid.

[115]  Peter Ahcin,et al.  Simulating demand response and energy storage in energy distribution systems , 2010, 2010 International Conference on Power System Technology.

[116]  J. Apt,et al.  Lithium-ion battery cell degradation resulting from realistic vehicle and vehicle-to-grid utilization , 2010 .

[117]  A. Molderink,et al.  Demand Side Load Management Using a Three Step Optimization Methodology , 2010, 2010 First IEEE International Conference on Smart Grid Communications.

[118]  I. G. Kamphuis,et al.  Grote concentraties warmtepompen in een woonwijk en gevolgen elektriciteitsnetwerk , 2010 .

[119]  Wenming Yang,et al.  Advances in heat pump systems: A review , 2010 .

[120]  Johan Driesen,et al.  Integration of energy storage in distribution grids , 2010, IEEE PES General Meeting.

[121]  Christine Müller,et al.  Regulierung, Effizienz und das Anreizdilemma bei Investitionen in intelligente Netze , 2011 .

[122]  Martin T. Stuebs,et al.  Revealing money’s time value , 2011 .

[123]  Susan Krumdieck,et al.  Price, environment and security: Exploring multi-modal motivation in voluntary residential peak demand response , 2011 .

[124]  Ben O. Brewin,et al.  New technologies for low voltage distribution networks , 2011, 2011 2nd IEEE PES International Conference and Exhibition on Innovative Smart Grid Technologies.

[125]  Fulli Gianluca,et al.  Smart Grid Projects in Europe - Lessons Learned and Current Developments , 2011 .

[126]  Torsten Hammerschmidt,et al.  INNOVATIVE CONCEPTS FOR EFFICIENT ELECTRICAL DISTRIBUTION GRIDS , 2011 .

[127]  Leonardo Meeus,et al.  Innovating grid regulation to regulate grid innovation: From the Orkney Isles to Kriegers Flak via Italy , 2011 .

[128]  Gerhard Krost,et al.  Transparency in the Distribution System , 2011 .

[129]  Dierk Bauknecht,et al.  Incentive Regulation and Network Innovations , 2011 .

[130]  L. Soder,et al.  Market structures to enable efficient wind and solar power integration , 2012, 2012 IEEE Power and Energy Society General Meeting.

[131]  Pengfei Wang,et al.  Distribution network voltage control using energy storage and demand side response , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[132]  Gerard J. M. Smit,et al.  Integration of heat pumps in distribution grids: Economic motivation for grid control , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[133]  Albert Molderink,et al.  Statistics for PV, wind and biomass generators and their impact on distribution grid planning. , 2012 .

[134]  Hitoshi Yano,et al.  Virtual integration technology of distributed energy storages , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[135]  Gerard J. M. Smit,et al.  Controlling the heating mode of heat pumps with the TRIANA three step methodology , 2012, 2012 IEEE PES Innovative Smart Grid Technologies (ISGT).

[136]  Maurice G. C. Bosman.  Planning in smart grids , 2012 .

[137]  Justino M. Rodrigues,et al.  Using photovoltaic systems to improve voltage control in low voltage networks , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[138]  Gerard J. M. Smit,et al.  Controlling smart grid adaptivity , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[139]  Vincent Bakker,et al.  TRIANA, a control strategy for Smart Grids : forecasting, planning and real-time control , 2012 .

[140]  Mark A. Andor,et al.  ‘Standard’ incentive regulation hinders the integration of renewable energy generation , 2012 .

[141]  M. Lödl,et al.  Untersuchungen zu hybriden Speichermodellen in Niederspannungsverteilnetzen mit hohem Anteil an Photovoltaikanlagen , 2012 .

[142]  Dirk Westermann,et al.  Involvement of flexible loads in transmission system operation , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[143]  Pio Lombardi,et al.  Optimal storage capacity within an autonomous micro grid with a high penetration of Renewable Energy Sources , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[144]  Markus Zdrallek,et al.  State identification and automatic control of smart low voltage grids , 2012, 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe).

[145]  Mark Barton.  Keeping the Lights On: Towards Sustainable Electricity , 2012 .

[146]  Gerard J. M. Smit,et al.  Controlling and optimizing of energy streams in local buildings in a field test , 2013 .

[147]  Gerard J. M. Smit,et al.  Storage operation for peak shaving of distributed PV and wind generation , 2013, 2013 IEEE PES Innovative Smart Grid Technologies Conference (ISGT).

[148]  J. G. Slootweg,et al.  Smart storage in the Enexis LV distribution grid , 2013 .

[149]  Dragan Maksimovic,et al.  Maximizing lithium ion vehicle battery life through optimized partial charging , 2013, 2013 IEEE PES Innovative Smart Grid Technologies Conference (ISGT).

[150]  Gerard J. M. Smit,et al.  Value of Storage in Distribution Grids—Competition or Cooperation of Stakeholders? , 2013, IEEE Transactions on Smart Grid.

[151]  Ruth Mugge,et al.  Washing when the sun is shining! How users interact with a household energy management system , 2013, Ergonomics.

[152]  A. Stolte,et al.  Improving quality of supply and usage of assets in distribution grids by introducing a “smart operator” , 2013 .

[153]  Albert Molderink,et al.  Break‐even analysis for the storage of PV in power distribution grids , 2014 .

[154]  Sebastian Ehrlichmann,et al.  Integration Of Alternative Sources Of Energy , 2016 .

[155]  Shaping the Change XXIII FIG Congress , 2022 .