Scenarios for the development of smart grids in the UK: literature review

Smart grids are expected to play a central role in any transition to a low-carbon energy future, and much research is currently underway on practically every area of smart grids. However, it is evident that even basic aspects such as theoretical and operational definitions, are yet to be agreed upon and be clearly defined. Some aspects (efficient management of supply, including intermittent supply, two-way communication between the producer and user of electricity, use of IT technology to respond to and manage demand, and ensuring safe and secure electricity distribution) are more commonly accepted than others (such as smart meters) in defining what comprises a smart grid. It is clear that smart grid developments enjoy political and financial support both at UK and EU levels, and from the majority of related industries. The reasons for this vary and include the hope that smart grids will facilitate the achievement of carbon reduction targets, create new employment opportunities, and reduce costs relevant to energy generation (fewer power stations) and distribution (fewer losses and better stability). However, smart grid development depends on additional factors, beyond the energy industry. These relate to issues of public acceptability of relevant technologies and associated risks (e.g. data safety, privacy, cyber security), pricing, competition, and regulation; implying the involvement of a wide range of players such as the industry, regulators and consumers. The above constitute a complex set of variables and actors, and interactions between them. In order to best explore ways of possible deployment of smart grids, the use of scenarios is most adequate, as they can incorporate several parameters and variables into a coherent storyline. Scenarios have been previously used in the context of smart grids, but have traditionally focused on factors such as economic growth or policy evolution. Important additional socio-technical aspects of smart grids emerge from the literature review in this report and therefore need to be incorporated in our scenarios. These can be grouped into four (interlinked) main categories: supply side aspects, demand side aspects, policy and regulation, and technical aspects.

Electricity Network Investment and Regulation for a Low Carbon Future

The requirement for significantly higher electricity network investment in the UK seems certain as the capacity of distributed generation and large scale renewables increases on the system. In this paper, which forms a chapter in the forthcoming Book “Delivering a Low Carbon Electricity System: Technologies, Economics and Policy”, the authors make a number of significant suggestions for improvement to the current system of network regulation. First, they suggest that the RPI-X system needs to be overhauled in favour of a simpler yardstick based system and which allows for more merchant transmission investments. Second, future regulation should involve more negotiated regulation involving agreements between network owners and purchasers of network services. This would be particularly advantageous for decisions on new network investments. Third, more extensive use needs to be made of locational pricing within the transmission and distribution system in order to facilitate the least cost expansion of low carbon generation, including micropower. Fourth, consideration needs to be given to ownership unbundling of distribution networks from retail supply. This would better facilitate the entry of distributed generation and the development of appropriate competition between grid and off-grid generation supply and demand side management. Finally, there needs to be a significant increase in R&D expenditure in electricity networks supported by customer levies

Understanding best practice regarding interruptible connections for wind generation: lessons from national and international experience

The aim of this study is to explore different practices for accelerating the integration of generating facilities to the electricity network using smart solutions. Case studies from Great Britain, Ireland and Northern Ireland and the Unites States were selected. The paper assesses and compares the different Principles of Access (POA) that have been implemented in these countries, such as Last-in First-out (LIFO), Pro Rata and Market-based. The social optimality of these approaches is also discussed. The paper also evaluates how the risk (regarding curtailment and investment) is allocated between parties (distributor network operators, generators and customers). Even though the cases are diverse, important findings and lessons have been identified which may assist UK distribution network operators to address the issue of increasing the connection of distributed generation while managing efficiently and economically energy exports from generators

An analysis of the UK regulatory and market frameworks for network access to develop enduring arrangements for a low-carbon power system

Imperial Users onl

Scenarios for the Development of Smart Grids in the UK: Literature Review

This Working Paper reviews the existing literature on the socio-technical aspects of smart grid development. This work was undertaken as part of the Scenarios for the Development of Smart Grids in the UK project

Scenarios for the development of smart grids in the UK : literature review

No abstractUK Energy Research Centr

Smart grids : Another step towards competition, energy security and climate change objectives

International audienceThe deployment of smart grids in electricity systems has given rise to much interdisciplinary research. The new technology is seen as an additional instrument available to States to achieve targets for promoting competition, increasing the safety of electricity systems and combating climate change. But the boom in smart grids also raises many economic questions. Public policies will need to be adapted, firstly to make allowance for the potential gains from smart grids and the associated information flow, and secondly to regulate the new networks and act as an incentive for investors. The new competitive offerings and end-user pricing systems will contribute to improving allocative and productive efficiency, while minimizing the risks of market power. With real-time data on output and consumption, generators and consumers will be able to adapt to market conditions. Lastly smart grids will boost the development of renewable energy sources and new technologies, by assisting their integration and optimal use

Integration of distributed energy resources in isolated microgrids: the Colombian paradigm

La electrificación de áreas rurales o aisladas, junto con las crecientes preocupaciones ambientales, han promovido la aparición de Recursos Energéticos Distribuidos (DER), y la operación por microrredes aisladas. Sin embargo, la integración de dichos recursos trae consigo problemas técnicos relacionados con la confiabilidad y la continuidad del suministro de electricidad. De hecho, la variabilidad e incertidumbre del recurso primario de las fuentes de generación renovables y la poca inercia de las microrredes aisladas son desafíos que se enfrentan en la operación de estos sistemas de distribución. Una forma de responder a estos desafíos es brindando servicios complementarios a través de todos los recursos inmersos en el funcionamiento del sistema (activos de generación, participación de la demanda y sistemas de almacenamiento). Este artículo muestra una revisión de los desafíos y beneficios potenciales de la Integración de DER, en la operación del sistema de distribución reportados en la literatura, junto con algunas estrategias comunes para mitigar la vulnerabilidad de la introducción de estas tecnologías en microrredes. Asimismo, realiza una evaluación del estado actual de cada recurso en Colombia; finalmente, se describen algunas estrategias para aumentar del impacto de los beneficios de la Integración de DER y la superación de algunos desafíos planteados en la operación por microredes en Colombia. Para ello, se considera a las regiones aisladas de Colombia como un laboratorio natural, donde sería posible analizar los efectos de la Integración de DER, así como los requisitos para la operación por parte de las unidades de producción locales.The electrification of rural or isolated areas coupled with increasing environmental concerns have promoted the emergence of Distributed Energy Resources (DER) and the operation by isolated microgrids. However, the integration of such resources involves technical issues related to the reliability and continuity of the electricity supply. Indeed, the uncertainty of renewable generation sources and the reduced inertia of isolated microgrids are challenges for the operation of these distribution systems. One way to address them is by providing ancillary services through all the resources involved in the system’s operation (generation assets, demand share, and storage systems). Accordingly, this paper first presents a literature review of the challenges and potential benefits of integrating DERs into the operation of a distribution system. It also includes some common strategies to mitigate the vulnerability of the introduction of these technologies in microgrids. Afterwards, the current state of each type of resource in Colombia is assessed. Finally, some basic strategies that enhance the benefits of DER integration are outlined along with the overcoming of challenges of microgrid operation in said country. To that end, we consider isolated Colombian regions to be natural laboratories where the effects of DER integration and the requirements for the operation by local production units can be analyzed

Integración de los recursos energéticos distribuidos en microrredes aisladas: paradigma colombiano

The electrification of rural or isolated areas coupled with increasing environmental concerns have promoted the emergence of Distributed Energy Resources (DER) and the operation by isolated microgrids. However, the integration of such resources involves technical issues related to the reliability and continuity of the electricity supply. Indeed, the uncertainty of renewable generation sources and the reduced inertia of isolated microgrids are challenges for the operation of these distribution systems. One way to address them is by providing ancillary services through all the resources involved in the system’s operation (generation assets, demand share, and storage systems). Accordingly, this paper first presents a literature review of the challenges and potential benefits of integrating DERs into the operation of a distribution system. It also includes some common strategies to mitigate the vulnerability of the introduction of these technologies in microgrids. Afterwards, the current state of each type of resource in Colombia is assessed. Finally, some basic strategies that enhance the benefits of DER integration are outlined along with the overcoming of challenges of microgrid operation in said country. To that end, we consider isolated Colombian regions to be natural laboratories where the effects of DER integration and the requirements for the operation by local production units can be analyzed.La electrificación de áreas rurales o aisladas, junto con las crecientes preocupaciones ambientales, han promovido la aparición de Recursos Energéticos Distribuidos (DER), y la operación por microrredes aisladas. Sin embargo, la integración de dichos recursos trae consigo problemas técnicos relacionados con la confiabilidad y la continuidad del suministro de electricidad. De hecho, la variabilidad e incertidumbre del recurso primario de las fuentes de generación renovables y la poca inercia de las microrredes aisladas son desafíos que se enfrentan en la operación de estos sistemas de distribución. Una forma de responder a estos desafíos es brindando servicios complementarios a través de todos los recursos inmersos en el funcionamiento del sistema (activos de generación, participación de la demanda y sistemas de almacenamiento). Este artículo muestra una revisión de los desafíos y beneficios potenciales de la Integración de DER, en la operación del sistema de distribución reportados en la literatura, junto con algunas estrategias comunes para mitigar la vulnerabilidad de la introducción de estas tecnologías en microrredes. Asimismo, realiza una evaluación del estado actual de cada recurso en Colombia; finalmente, se describen algunas estrategias para aumentar del impacto de los beneficios de la Integración de DER y la superación de algunos desafíos planteados en la operación por microredes en Colombia. Para ello, se considera a las regiones aisladas de Colombia como un laboratorio natural, donde sería posible analizar los efectos de la Integración de DER, así como los requisitos para la operación por parte de las unidades de producción locales

Power systems' performance under high renewables' penetration rates: a natural experiment due to the COVID-19 demand shock

COVID-19 lockdowns make it possible to investigate the extent to which an unprecedented increase in renewables' penetration may have brought unexpected limitations and vulnerabilities of current power systems to the surface. We empirically investigate how power systems in five European countries have dealt with this unexpected shock, drastically changing electricity load, the scheduling of dispatchable generation technologies, electricity day-ahead wholesale prices, and balancing costs. We find that low-cost dispatchable generation from hydro and nuclear sources has fulfilled most of the net-load even during peak hours, replacing more costly fossil-based generation. In Germany, the UK, and Spain coal power plants stood idle, while gas-fired generation has responded in heterogeneous ways across power systems. Falling operational costs of generators producing at the margin and lower demand, both induced by COVID-19 lockdowns, have significantly decreased wholesale prices. Balancing and other ancillary services' markets have provided the flexibility required to respond to the exceptional market conditions faced by the grid. Balancing costs for flexibility services have increased heterogeneously across countries, while ancillary markets' costs, measured only in the case of Italy, have increased substantially. Results provide valuable evidence on current systems' dynamics during high renewables' shares and increased demand volatility. New insights into the market changes countries will be facing in the transition towards a clean, secure, and affordable power system are offered