1. 1 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Effects of volatile RES on Power Systems Alessandro Clerici Chairman WEC Study Group “Energy Resources and Technologies” ABB Italy

2. 2 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012  With the aim of reducing CO 2 emissions and dependency from fossil fuels, in various countries the sharp increase of electrical RES (Renewable Energy Sources) as a result of substantial subsidies, is creating problems to an efficient and reliable operation of the electrical power system.  Both transmission and distribution systems have to face an increasingly variable production of intermittent renewable energy sources with special reference to wind and photovoltaic; the problem is not however limited to T&D but involves also the thermal fleet of a country which is required of a “flexible operation” (start-up time, ramps of power increase / decrease, reduced hours of operation) by far beyond technical and economic limits of the great majority of the present plants in service. And bottlenecks in transmission and distribution aggravate the problems.

3. 3 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012

4. 4 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012

5. 5 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 In the last decade the Italian generation mix dramatically changed

6. 6 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 The change was driven by a “dash for gas” which built an efficient thermal generation fleet with no peers in Europe

7. 7 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 But the change was also driven by Italian RES incentives, greater than rest of Europe, which spurred a “dash for RES”

8. 8 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 …as a results of over-remuneration the installed PV capacity is facing a boom

9. 9 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 …but…grid bottlenecks are still under resolution

10. 10 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 …causing power market fragmentation

11. 11 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 A widening reserve margin, based on RES growth

12. 12 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Post-crisis demand’s decrease together with rapid RES growth have squeezed thermo generation, especially the new CCGTs

13. 13 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 As a consequence, creating a “distorted” new price curve which disrupts old “conventions”

14. 14 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Greater RES penetration, together with low demand and with expensive and relatively unflexible CCGT induce greater price volatility in the market

15. 15 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 RES penetration can affect the power system behavior

16. 16 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Wind has a lower predictable generation pattern than sun

17. 17 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Need for additional reserve to cope with the intermittency of non- programmable RES generation

18. 18 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Excess of non-programmable RES generation in periods with low demand can lead to over-generation

19. 19 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Coping with sharp variations of RES generation

20. 20 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Over-generation and quick “ramp-ups” create a new need: Energy Storage facilities

21. 21 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Sun and wind are location dependent and often remote locations from the demand centers

22. 22 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 A sudden risk of black-out due to RES disconnection when frequency is outside the grid code limits

23. 23 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012 Options for Increasing Power System Flexibility to Accommodate Renewables

24. 24 SEEEI International – Electricity 2012: “Effects of volatile RES on Power Systems” Israel – Eilat 14 November 2012