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«Project management: Deutsche Energie-Agentur GmbH (dena) – German Energy Agency Project partners: 50Hertz Transmission GmbH, ABB AG, Amprion GmbH, ...»

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dena Ancillary Services Study 2030.

Summary of the key results of the study

“Security and reliability of a power supply with a high percentage

of renewable energy”

by the project steering group.

Project management:

Deutsche Energie-Agentur GmbH (dena) – German Energy Agency

Project partners:

50Hertz Transmission GmbH, ABB AG, Amprion GmbH, BELECTRIC Solarkraftwerke GmbH, E.DIS AG, ENERCON GmbH,

EWE Netz GmbH, Mitteldeutsche Netzgesellschaft Strom mbH, N-ERGIE Netz GmbH, Netze BW GmbH, SMA Solar Technology AG, TenneT TSO GmbH, TransnetBW GmbH, Westnetz GmbH, Younicos AG Berlin, 03/07/2014 Page 1 of 21 dena Ancillary Services Study 2030: Summary of the results of the project steering group.

1 dena Ancillary Services Study 2030: Background and objectives.

With the 2010 energy concept and the decision to accelerate the Energiewende (energy turnaround) in Germany in 2011, the German Federal Government committed to the objective of expanding the percentage of the gross electricity consumption supplied from renewable energy sources to at least 80 percent by

2050. This objective is part of a far-reaching strategy to establish a secure, economical and sustainable energy supply, which takes into account the requirements of climate protection and the targeted reduction of Germany’s dependence on fuel imports between now and 2050. The objectives chosen brought about a major change of the power supply structure in Germany, which requires new solutions to provide ancillary services in future. These new solutions are necessary to guarantee reliable and stable operation of power supply grids.

As part of the Energiewende (energy turnaround) in Germany, the electricity grids must be modified and expanded to facilitate the changes in the electricity generation structure, and to guarantee constant supply security in the future. The electricity transmission grid must be upgraded to transport large quantities of electrical energy from the main generation areas for onshore and offshore wind energy in the north and east of Germany to the main consumption areas in the south and west of Germany, and at the same time to permit increasing international transit as part of European electricity trading. Renewable energy systems are largely connected to the distribution grid, i.e. at high, medium and low-voltage levels. The energy generated is largely fed from the distribution grids into the transmission grids, and must often be transported over long distances. As a result, there is a significant need for expansion and innovation in the transmission and distribution grids in Germany to prevent overloading of the operating equipment and the permitted voltage limits being exceeded.

Against this background, a review is needed of how secure operation of the power supply system can be organised under the new conditions. Conventional power plants, which today still largely provide the ancillary service products for stable grid operation, will be on-grid for fewer and fewer hours in future. The question as to how the scope and type of these ancillary service products must change to provide the ancillary services frequency control, voltage control, system restoration and system control.

Relevance of ancillary services for the power supply system.

In order to guarantee a high quality, reliability and security of electricity transmission and distribution, the system operators continuously take measures to keep the frequency, voltage and load of the operating equipment within the permitted tolerances or to return them to the normal range after faults. These services, which are essential to keep the supply of electricity functional, are called ancillary services.

The products required for this are largely provided by power generation units or other technical systems. System operators use these products and provide ancillary services by deploying them appropriately.

Frequency control is implemented by transmission system operators by maintaining a balance between electricity generation and consumption. Transmission system operators can use the instantaneous reserve and balancing energy to do so.

–  –  –

Voltage control refers to the responsibility of the transmission and distribution system operators to maintain the grid voltage in a permissible range for the voltage quality. The system operators must also ensure that voltage drops are limited if a short circuit occurs.

Re-establishing the power supply is used in the event of a widespread power failure. Then the transmission system operators, with the cooperation of the distribution system operators, must be in a position to restore the supply of electricity within a very short time.

As part of system control, the system operators are responsible for organising secure grid operations.

Therefore, they continuously monitor and control the electricity grid including generation and (to a limited extent) load for threshold violations (e.g. current flow overloads), in order to guarantee secure operation of the entire power supply system.

To ensure the provision and availability of the ancillary services required for secure and stable operation of

the electricity grids, the following options are used today:

Intrinsic system properties of electricity generators or consumers or properties required via grid connec tion codes or legal specifications Flexible use of operating equipment of the system operators as part of system control  Services procured by system operators from third parties based on bilateral agreements or market  mechanisms Table 1 provides an overview of the main ancillary service products and their providers.

The transmission system operators have the superordinate responsibility for system stability, and must also coordinate with the other transmission system operators involved in the European integrated grid.

System restoration is realised based on a specified process controlled by the transmission system operators in the event of a power failure. The respective distribution system operators are responsible for local grid faults which are restricted to the distribution grid. In the event of larger-scale failures which impact grids up to the extra high voltage grid, the transmission system operators are responsible for controlling the system restoration.

System control and voltage control are the responsibility of the respective system operator, which must take into consideration the required specifications of the upstream system operators.

–  –  –

Table 1 - Classification of current ancillary service products.

Please note here that for supply security, irrespective of the provision of ancillary services, a sufficiently dimensioned secure generation capacity will have to be maintained in the future 1 to meet the electricity demand if there is a generation shortfall from renewable energy sources due to weather conditions.

Ancillary Services Study 2030: Objectives.

The objective of the present study is to identify the need for action to guarantee secure and reliable grid operation between now and 2030 in a power supply system with a high percentage of electricity generation from fluctuating renewable energy sources. The study focuses on the power supply system in Germany taking the European integrated grid and international electricity trading into consideration.

The secure generation capacity for guideline scenario B2033 of the 2013 Network Development Plan is roughly 96,000 MW with an annual maximum load of 84,000 MW.

–  –  –

The following key questions were examined as part of the study:

How will the requirements and the demand of ancillary services to be provided develop between now  and 2030?

What contribution can and should innovative technological solutions (in particular via renewable ener gy sources, inverters, grid technology, demand-side management and electricity storage units) make to the provision of ancillary services in future?

To what extent can the minimum generation capacity from conventional power plants currently re quired to provide ancillary services be reduced?

Study design.

This dena Ancillary Services Study 2030 was produced by the Deutsche Energie-Agentur (dena) – the German Energy Agency in close interdisciplinary cooperation with transmission and distribution system operators, manufacturers and project developers for renewable energy and manufacturers of grid and system technology.

dena initiated and headed up the study project. The study was designed by dena and coordinated with the group of experts from the companies involved in the project steering group.

The following members were represented in the project steering group as sponsors of the study: 50Hertz Transmission GmbH, ABB AG, Amprion GmbH, BELECTRIC Solarkraftwerke GmbH, E.DIS AG, ENERCON GmbH, EWE NETZ GmbH, Mitteldeutsche Netzgesellschaft Strom mbH, N-ERGIE Netz GmbH, Netze BW GmbH, SMA Solar Technology AG, TenneT TSO GmbH, TransnetBW GmbH, Westnetz GmbH, Younicos AG. In addition to this, RWE Deutschland AG and Statkraft Markets GmbH took part in the meetings of the project steering group as guests.

The research partner involved was ef.Ruhr GmbH under the leadership of Prof. Dr.-Ing. Christian Rehtanz. The ef.Ruhr GmbH performed the quantitative and qualitative analyses. The project steering group discussed and checked the methods used and the results.

2 Scenario assumptions for the power supply system in 2030.

For the investigations in this study, Scenario B from the 2013 Network Development Plan was assumed for the 2033 study year. Any time “Ancillary services in 2030” is mentioned in this study, this refers to the study year 2033.

The analyses in this study assume that the installed renewable energy capacity for electricity generation will almost triple between 2013 and 2033. Onshore wind with an installed capacity of 66.3 GW, photovoltaics with an installed capacity of 65.3 GW and offshore wind with an installed capacity of 25.3 GW are the dominant generation technologies in this scenario.

For the conventional power plant fleet, the 2013 Network Development Plan predicts that the nuclear power phase-out will be complete by 2022, and that many gas power plants will be built. Overall, an installed conventional generation capacity of approx. 76 GW is assumed for 2033.

–  –  –

Table 2 - Installed generation capacity in the study scenario (Source: Scenario framework of the 2013 Network Development Plan).

Even if changing political stipulations result in deviating expansion and development targets, the trends and the need for action revealed will largely remain unchanged as the expansion of renewable energy progresses.

For other European countries, the assumptions of the Scenario Outlook & Adequacy Forecast (ENTSO-E

2013) published in 2013 were assumed for the composition of the electricity generation mix. This analysis predicts a moderate expansion of renewable energy sources for other European countries compared with Germany.

The renewable generation capacities were allocated to individual grid nodes or regions in the grid model based on a number of criteria. Among other factors, an increase of the installed renewable energy capacity at current locations (e.g. repowering of onshore wind) and the construction at new locations particularly suitable for generating electricity are incorporated. As part of the analyses, the power plant use is calculated with hourly precision using a market-based model.

The transmission grid model used for the analyses in the dena Ancillary Services Study 2030 incorporates the expansion of the extra high voltage grid with three-phase and alternating current connections in accordance with the 2013 Network Development Plan, and the measures in the ENTSO-E Ten-Year Network Development Plan 2012 (TYNDP) for the further grid upgrades in Europe.

As part of the Network Development Plan for the extra high voltage grids, state of the art technologies are to be implemented by the transmission system operators (e.g. reactive power compensators for voltage control) in accordance with the regulatory framework. Determining the need for expansion and modification of the electricity transmission grid in the Grid Development Plan, the need for reactive and short circuit power for static and dynamic voltage control was analysed in detail as part of grid planning.

Based on the results of the Network Development Plan, this study examines all ancillary services required for secure and stable grid operation across all grid levels, and evaluates the potential of all (i.e. even new) innovative technology solutions for their provision (e.g. provision of reactive power and emulation of instantaneous reserve with renewable energy). Accordingly, the dena Ancillary Services Study 2030 is an important and forward-looking addition to the existing Grid Development Plan. The economic forecasts made in the study permit an initial classification of the alternatives available for efficient provision of the ancillary services.

Page 6 of 21 dena Ancillary Services Study 2030: Summary of the results of the project steering group.

Ancillary service products (e.g. primary balancing energy for frequency control) are currently utilised jointly by the participating transmission system operators, and will continue to be in future. However, for physical reasons, there is automatic mutual support in the European integrated grid for other ancillary services (e.g. instantaneous reserve for frequency control).

As a boundary condition, the requirement for all analyses performed in this study was that the technical alternatives studied for future provision of ancillary services must be provided in a manner and volume to guarantee the current level of system stability in Germany and Europe in future, too.

All analyses of the dena Ancillary Services Study 2030 were also made under the boundary condition that Germany will continue to fulfil its share of the system responsibility in the European integrated grid at a constant level compared with the current situation, and that the system support responsibility is not to be transferred to European partners.

3 Frequency control in 2030.

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