China has made substantial initial progress in its electricity market reform, but it still faces an uphill struggle in promoting the consumption of renewables, resource allocation across provinces and regions, and unlocking demand side potential. To help choose the best solutions China could do well to look at the “Handbook on Electricity Markets”, says Daisy Chi at ECECP. The 600-page book looks at the current state of power markets around the … [Read more...]
EU electricity market reform: completing, not dismantling, the integration is the answer
Leonardo Meeus at the Florence School of Regulation explains why electricity market reform in the EU must be about completing the process of integration, not unwinding it. He breaks down his argument into five categories – Electricity Markets, Contracts for Difference (CfD) and Power Purchase Agreements (PPA), Capacity Remuneration Mechanisms (CRM), Energy Communities, and Demand-side Flexibility – and with each he defines their purpose, looks at … [Read more...]
Event summary: “45% RES by 2030: EU’s latest investment challenge to DSOs”
Sara Stefanini provides a written summary of our panel discussion held on Thursday June 30th 2022. It’s a full summary of the 90 minute discussion (including audience questions), but it begins conveniently with a summary of the highlights. Investment in and the modernisation of the electricity distribution grid is one the biggest challenges the EU has to overcome in the next decade. It’s a €400bn investment challenge by 2050 says Eurelectric, an … [Read more...]
4 ways to cut whole system electricity costs with flexible Demand Side Management
Right now, energy system costs are driven by generation capacity, infrastructure upgrades, network reinforcements, curtailment and constraint payments, and imbalance costs. What’s missing is the investment in a raft of demand side management assets that are ready to go but are not part of the market, therefore not rewarded, and therefore not being invested in. Laura Sandys at Energy Systems Catapult, writing for WEF, explains why flexibility must … [Read more...]
Manifesto: fit-for-purpose flexible grids for the clean electrification of Europe
The integration of new clean generation sources on top of the increase in electrification of industry, e-mobility, and heating and cooling means grid investment must be made a priority. Anything else will leave deployment-ready solutions waiting, slowing down the transition. The backdrop is that over one third of the EU’s grids are already more than 40 years old. Eurelectric has produced a manifesto, “Connecting The Dots”, that estimates … [Read more...]
Smart households in a high Renewables world: flexible, efficient, cheaper
Smart controls can enable household heating and EVs to interact flexibly with increasingly decentralised electricity generation. As renewables continue to be added to the energy mix, it will increase efficiency, reduce load, and save money. Marco Reiser and Karoline Steinbacher at Guidehouse summarise the challenges and opportunities, before looking at the SINTEG pilot in Germany. The main hurdles are technological (standardisation, interfaces, … [Read more...]
Intelligent, flexible Sector Coupling in cities can double the potential for Wind and Solar
This week the European Commission tabled the Energy Performance of Buildings Directive (EPBD) which should accelerate the decarbonisation of buildings. Buildings and cities play a key role in the energy transition. And the target high shares of variable renewable power supply will be much more easily achieved if the sectors using them display demand flexibility. In essence, that means using or storing the excess wind and solar generation … [Read more...]
Grid-Interactive Efficient Buildings: how to start saving from day one
Edie Taylor, Rebecca Esau and John Matson at Rocky Mountain Institute explain how their report “Grid-Interactive Efficient Buildings Made Easy” identifies simple, low-cost steps that produce immediate cost, energy, and carbon savings. As utilities evolve their pricing structures to encourage users to avoid peak times, building managers must ready themselves with the controls that will allow them to buy electricity when it is cheapest. Demand … [Read more...]
Industry’s large on-site batteries can profitably help stabilise the grid
Energy-intensive industries that invest in their own large on-site batteries will provide multiple benefits to themselves as well as to grid stability, says a new study by the Joint Institute for Strategic Energy (JISEA) in partnership with NREL and others. It matters because future power systems will need to be highly flexible due to the variability of wind and solar. The study assessed two established energy-intensive industries (chlor-alkali … [Read more...]
Electricity Market Reform: ACER must empower consumers, not just network operators
ACER, the EU Agency for the Cooperation of Energy Regulators, has delivered to the EC its preliminary assessment of Europe's high energy prices and the current wholesale electricity market design. Simon Skillings and Lisa Fischer at E3G interpret ACER’s assessment as showing it wants to maintain the status quo. However, long-term changes in market design are inevitable. The authors want ACER to accept this reality and ensure the changes are … [Read more...]
2019’s grid storage additions fell for the first time since 2013. Why?
Globally, new installations of grid storage fell year-on-year in 2019 for the first time since 2013. This IEA summary of the landscape is taken from its latest series of Tracking Clean Energy Progress reports. The IEA’s recommendations reflect the fact that grid storage is new and complex, needing changes to existing regulations and market rules that are unviable in the age of transition. The policy goal is to monetise the value of storage in … [Read more...]
Energy Post panel discussion – Cross-Border Capacity [VIDEO]
Whilst renewable generation continues to grow, cross-border capacity fails to keep up. On May 19, 2020, Energy Post hosted a unique panel qualified to discuss the issue and shed some light on how we got here and what the options might be going forward. The discussion was moderated by Erik Rakhou - alternate member of the ACER board of appeal and consultant at Baringa. Representing the European Commission was Florian Ermacora and for independent, … [Read more...]
IEA: Battery storage races to keep up with solar and wind’s demand-matching challenges
Yesterday’s article from the IEA posed the question: will solar’s inherent intermittency slow its rise as a major power supply. For variable renewables like solar and wind to grow to over 50% of global capacity additions by 2040, storage technology must keep up with this pace. For this to happen, “flexibility” – the ability of the power system to quickly adapt to changes in power supply and demand – needs to grow by some 80% in the next decade … [Read more...]
IEA: solar’s exponential growth could make it less competitive, not more
Solar’s current growth trajectory means a doubling of annual deployment every three years. But despite further expected reductions in some cost areas (e.g. cheaper tech and economies of scale), the IEA’s new VALCOE (value-adjusted levelised costs of electricity) metric calculates that solar’s relative competitiveness per unit added will actually decline as its inherent demand-matching issues scale up with the growth. Brent Wanner, WEO Energy … [Read more...]
