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Integrating solar PV (photovoltaics) in utility system operations: Analytical framework and Arizona case study

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  • Wu, Jing
  • Botterud, Audun
  • Mills, Andrew
  • Zhou, Zhi
  • Hodge, Bri-Mathias
  • Heaney, Mike

Abstract

A systematic framework is proposed to estimate the impact on operating costs due to uncertainty and variability in renewable resources. The framework quantifies the integration costs associated with sub-hourly variability and uncertainty as well as day-ahead forecasting errors in solar PV (photovoltaics) power. A case study illustrates how changes in system operations may affect these costs for a utility in the southwestern United States (Arizona Public Service Company). We conduct an extensive sensitivity analysis under different assumptions about balancing reserves, system flexibility, fuel prices, and forecasting errors. We find that high solar PV penetrations may lead to operational challenges, particularly during low-load and high solar periods. Increased system flexibility is essential for minimizing integration costs and maintaining reliability. In a set of sensitivity cases where such flexibility is provided, in part, by flexible operations of nuclear power plants, the estimated integration costs vary between $1.0 and $4.4/MWh-PV for a PV penetration level of 17%. The integration costs are primarily due to higher needs for hour-ahead balancing reserves to address the increased sub-hourly variability and uncertainty in the PV resource.

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  • Wu, Jing & Botterud, Audun & Mills, Andrew & Zhou, Zhi & Hodge, Bri-Mathias & Heaney, Mike, 2015. "Integrating solar PV (photovoltaics) in utility system operations: Analytical framework and Arizona case study," Energy, Elsevier, vol. 85(C), pages 1-9.
  • Handle: RePEc:eee:energy:v:85:y:2015:i:c:p:1-9
    DOI: 10.1016/j.energy.2015.02.043
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    1. Munoz, Francisco D. & Pumarino, Bruno J. & Salas, Ignacio A., 2017. "Aiming low and achieving it: A long-term analysis of a renewable policy in Chile," Energy Economics, Elsevier, vol. 65(C), pages 304-314.
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    4. Nghitevelekwa, K. & Bansal, R.C., 2018. "A review of generation dispatch with large-scale photovoltaic systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 615-624.
    5. Jenkins, J.D. & Zhou, Z. & Ponciroli, R. & Vilim, R.B. & Ganda, F. & de Sisternes, F. & Botterud, A., 2018. "The benefits of nuclear flexibility in power system operations with renewable energy," Applied Energy, Elsevier, vol. 222(C), pages 872-884.
    6. Kovacic, Zora & Giampietro, Mario, 2015. "Empty promises or promising futures? The case of smart grids," Energy, Elsevier, vol. 93(P1), pages 67-74.
    7. Pierro, Marco & Perez, Richard & Perez, Marc & Moser, David & Cornaro, Cristina, 2021. "Imbalance mitigation strategy via flexible PV ancillary services: The Italian case study," Renewable Energy, Elsevier, vol. 179(C), pages 1694-1705.
    8. Sanzana Tabassum & Tanvin Rahman & Ashraf Ul Islam & Sumayya Rahman & Debopriya Roy Dipta & Shidhartho Roy & Naeem Mohammad & Nafiu Nawar & Eklas Hossain, 2021. "Solar Energy in the United States: Development, Challenges and Future Prospects," Energies, MDPI, vol. 14(23), pages 1-65, December.
    9. Fikru, Mahelet G. & Gautier, Luis, 2021. "Electric utility mergers in the presence of distributed renewable energy," Energy Economics, Elsevier, vol. 101(C).
    10. Cole, Wesley & Frew, Bethany & Gagnon, Pieter & Reimers, Andrew & Zuboy, Jarett & Margolis, Robert, 2018. "Envisioning a low-cost solar future: Exploring the potential impact of Achieving the SunShot 2030 targets for photovoltaics," Energy, Elsevier, vol. 155(C), pages 690-704.
    11. Panos Kouvelis & Hirofumi Matsuo & Yixuan Xiao & Quan Yuan, 2023. "Long‐term service agreement in electricity supply chain with renewable energy penetration," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1830-1845, June.
    12. Babatunde, A.A. & Abbasoglu, S. & Senol, M., 2018. "Analysis of the impact of dust, tilt angle and orientation on performance of PV Plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 1017-1026.
    13. Paulescu, Marius & Brabec, Marek & Boata, Remus & Badescu, Viorel, 2017. "Structured, physically inspired (gray box) models versus black box modeling for forecasting the output power of photovoltaic plants," Energy, Elsevier, vol. 121(C), pages 792-802.
    14. Carvallo, Juan Pablo & Sanstad, Alan H. & Larsen, Peter H., 2019. "Exploring the relationship between planning and procurement in western U.S. electric utilities," Energy, Elsevier, vol. 183(C), pages 4-15.
    15. Joseph Nyangon & John Byrne & Job Taminiau, 2017. "An assessment of price convergence between natural gas and solar photovoltaic in the U.S. electricity market," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 6(3), May.
    16. Zhu, Xiaodong & Zhao, Shihao & Yang, Zhile & Zhang, Ning & Xu, Xinzhi, 2022. "A parallel meta-heuristic method for solving large scale unit commitment considering the integration of new energy sectors," Energy, Elsevier, vol. 238(PC).
    17. Kaur, Amanpreet & Nonnenmacher, Lukas & Coimbra, Carlos F.M., 2016. "Net load forecasting for high renewable energy penetration grids," Energy, Elsevier, vol. 114(C), pages 1073-1084.
    18. Thomas Carrière & Rodrigo Amaro e Silva & Fuqiang Zhuang & Yves-Marie Saint-Drenan & Philippe Blanc, 2021. "A New Approach for Satellite-Based Probabilistic Solar Forecasting with Cloud Motion Vectors," Energies, MDPI, vol. 14(16), pages 1-19, August.
    19. Abujarad, Saleh Y. & Mustafa, M.W. & Jamian, J.J., 2017. "Recent approaches of unit commitment in the presence of intermittent renewable energy resources: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 215-223.
    20. Marco Pierro & David Moser & Richard Perez & Cristina Cornaro, 2020. "The Value of PV Power Forecast and the Paradox of the “Single Pricing” Scheme: The Italian Case Study," Energies, MDPI, vol. 13(15), pages 1-27, August.
    21. Susanto, Julius & Shahnia, Farhad & Ludwig, David, 2018. "A framework to technically evaluate integration of utility-scale photovoltaic plants to weak power distribution systems," Applied Energy, Elsevier, vol. 231(C), pages 207-221.
    22. Pierro, Marco & Perez, Richard & Perez, Marc & Prina, Matteo Giacomo & Moser, David & Cornaro, Cristina, 2021. "Italian protocol for massive solar integration: From solar imbalance regulation to firm 24/365 solar generation," Renewable Energy, Elsevier, vol. 169(C), pages 425-436.
    23. Pierro, Marco & Perez, Richard & Perez, Marc & Moser, David & Cornaro, Cristina, 2020. "Italian protocol for massive solar integration: Imbalance mitigation strategies," Renewable Energy, Elsevier, vol. 153(C), pages 725-739.
    24. Pierro, Marco & De Felice, Matteo & Maggioni, Enrico & Moser, David & Perotto, Alessandro & Spada, Francesco & Cornaro, Cristina, 2020. "Residual load probabilistic forecast for reserve assessment: A real case study," Renewable Energy, Elsevier, vol. 149(C), pages 508-522.

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