IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v183y2022icp524-534.html
   My bibliography  Save this article

Impact of increasing transmission capacity for a massive integration of renewable energy on the energy and environmental value of distributed generation

Author

Listed:
  • Oliva H., Sebastian
  • Muñoz, Juan
  • Fredes, Felipe
  • Sauma, Enzo

Abstract

Distributed generation (DG) can offer significant value to power systems by reducing some of the energy and emission marginal costs of centralized generation. These costs can change significantly with the expansion of power systems, especially when renewable energy integration is supported on large new transmission capacity. Accordingly, these cost and price changes could have a potentially large impact on the system value of DG. In this paper, we assess the impact of increasing transmission capacity, for a massive integration of renewable energy, on the energy and environmental system value of solar PV, wind, and energy storage DG. To illustrate this, a case study is presented based on the main Chilean electric power system. We found significant variations in the DG value with different transmission line capacity levels. For instance, just the energy value of PV and storage DG changed up to 43% and 100%, respectively, for line capacity levels growing from 0% (no line) to 200%, in one key transmission line analyzed. This can also represent a strong impact on the revenue of DG projects, generally paid based on this energy value. Furthermore, DG revenue losses can be problematic considering that DG still offers a significant environmental value.

Suggested Citation

  • Oliva H., Sebastian & Muñoz, Juan & Fredes, Felipe & Sauma, Enzo, 2022. "Impact of increasing transmission capacity for a massive integration of renewable energy on the energy and environmental value of distributed generation," Renewable Energy, Elsevier, vol. 183(C), pages 524-534.
    • Handle: RePEc:eee:renene:v:183:y:2022:i:c:p:524-534
    DOI: 10.1016/j.renene.2021.11.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148121015949
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2021.11.025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hammond, Geoffrey P. & Harajli, Hassan A. & Jones, Craig I. & Winnett, Adrian B., 2012. "Whole systems appraisal of a UK Building Integrated Photovoltaic (BIPV) system: Energy, environmental, and economic evaluations," Energy Policy, Elsevier, vol. 40(C), pages 219-230.
    2. Schaber, Katrin & Steinke, Florian & Hamacher, Thomas, 2012. "Transmission grid extensions for the integration of variable renewable energies in Europe: Who benefits where?," Energy Policy, Elsevier, vol. 43(C), pages 123-135.
    3. Javier Bustos-Salvagno & Fernando Fuentes H., 2017. "Electricity Interconnection in Chile: Prices versus Costs," Energies, MDPI, vol. 10(9), pages 1-17, September.
    4. Adam E. Clements & A. Stan Hurn & Zili Li, 2017. "The Effect of Transmission Constraints on Electricity Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    5. Mills, Andrew D. & Levin, Todd & Wiser, Ryan & Seel, Joachim & Botterud, Audun, 2020. "Impacts of variable renewable energy on wholesale markets and generating assets in the United States: A review of expectations and evidence," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    6. Bachtiar Nappu, Muhammad & Arief, Ardiaty & Bansal, Ramesh C., 2014. "Transmission management for congested power system: A review of concepts, technical challenges and development of a new methodology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 572-580.
    7. Li, Ying & Lukszo, Zofia & Weijnen, Margot, 2016. "The impact of inter-regional transmission grid expansion on China’s power sector decarbonization," Applied Energy, Elsevier, vol. 183(C), pages 853-873.
    8. Katharine Ricke & Laurent Drouet & Ken Caldeira & Massimo Tavoni, 2018. "Country-level social cost of carbon," Nature Climate Change, Nature, vol. 8(10), pages 895-900, October.
    9. Mulder, Machiel & Scholtens, Bert, 2013. "The impact of renewable energy on electricity prices in the Netherlands," Renewable Energy, Elsevier, vol. 57(C), pages 94-100.
    10. Mena, R. & Escobar, R. & Lorca, Á. & Negrete-Pincetic, M. & Olivares, D., 2019. "The impact of concentrated solar power in electric power systems: A Chilean case study," Applied Energy, Elsevier, vol. 235(C), pages 258-283.
    11. Kolb, Sebastian & Dillig, Marius & Plankenbühler, Thomas & Karl, Jürgen, 2020. "The impact of renewables on electricity prices in Germany - An update for the years 2014–2018," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    12. Burgholzer, Bettina & Auer, Hans, 2016. "Cost/benefit analysis of transmission grid expansion to enable further integration of renewable electricity generation in Austria," Renewable Energy, Elsevier, vol. 97(C), pages 189-196.
    13. Moreno, Rodrigo & Moreira, Roberto & Strbac, Goran, 2015. "A MILP model for optimising multi-service portfolios of distributed energy storage," Applied Energy, Elsevier, vol. 137(C), pages 554-566.
    14. Hasan, Kazi Nazmul & Saha, Tapan Kumar & Eghbal, Mehdi & Chattopadhyay, Deb, 2013. "Review of transmission schemes and case studies for renewable power integration into the remote grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 568-582.
    15. Sidhu, Arjan S. & Pollitt, Michael G. & Anaya, Karim L., 2018. "A social cost benefit analysis of grid-scale electrical energy storage projects: A case study," Applied Energy, Elsevier, vol. 212(C), pages 881-894.
    16. Sioshansi, Ramteen & Denholm, Paul & Jenkin, Thomas & Weiss, Jurgen, 2009. "Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects," Energy Economics, Elsevier, vol. 31(2), pages 269-277, March.
    17. Hoff, Thomas E & Wenger, Howard J & Farmer, Brian K, 1996. "Distributed generation : An alternative to electric utility investments in system capacity," Energy Policy, Elsevier, vol. 24(2), pages 137-147, February.
    18. Schaber, Katrin & Steinke, Florian & Mühlich, Pascal & Hamacher, Thomas, 2012. "Parametric study of variable renewable energy integration in Europe: Advantages and costs of transmission grid extensions," Energy Policy, Elsevier, vol. 42(C), pages 498-508.
    19. Mills, Andrew D. & Wiser, Ryan H., 2015. "Strategies to mitigate declines in the economic value of wind and solar at high penetration in California," Applied Energy, Elsevier, vol. 147(C), pages 269-278.
    20. Amor, Mourad Ben & Pineau, Pierre-Olivier & Gaudreault, Caroline & Samson, Réjean, 2012. "Assessing the economic value of renewable distributed generation in the Northeastern American market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5687-5695.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalala, Zakariya & Al-Omari, Murad & Al-Addous, Mohammad & Bdour, Mathhar & Al-Khasawneh, Yaqoub & Alkasrawi, Malek, 2022. "Increased renewable energy penetration in national electrical grids constraints and solutions," Energy, Elsevier, vol. 246(C).
    2. Pusceddu, Elian & Zakeri, Behnam & Castagneto Gissey, Giorgio, 2021. "Synergies between energy arbitrage and fast frequency response for battery energy storage systems," Applied Energy, Elsevier, vol. 283(C).
    3. Child, Michael & Kemfert, Claudia & Bogdanov, Dmitrii & Breyer, Christian, 2019. "Flexible electricity generation, grid exchange and storage for the transition to a 100% renewable energy system in Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 139, pages 80-101.
    4. Rodriguez, Rolando A. & Becker, Sarah & Greiner, Martin, 2015. "Cost-optimal design of a simplified, highly renewable pan-European electricity system," Energy, Elsevier, vol. 83(C), pages 658-668.
    5. Coe, Ryan G. & Bacelli, Giorgio & Forbush, Dominic, 2021. "A practical approach to wave energy modeling and control," Renewable and Sustainable Energy Reviews, Elsevier, vol. 142(C).
    6. Reichenberg, Lina & Hedenus, Fredrik & Odenberger, Mikael & Johnsson, Filip, 2018. "The marginal system LCOE of variable renewables – Evaluating high penetration levels of wind and solar in Europe," Energy, Elsevier, vol. 152(C), pages 914-924.
    7. Chattopadhyay, Kabitri & Kies, Alexander & Lorenz, Elke & von Bremen, Lüder & Heinemann, Detlev, 2017. "The impact of different PV module configurations on storage and additional balancing needs for a fully renewable European power system," Renewable Energy, Elsevier, vol. 113(C), pages 176-189.
    8. Ding, Jie & Xu, Yujie & Chen, Haisheng & Sun, Wenwen & Hu, Shan & Sun, Shuang, 2019. "Value and economic estimation model for grid-scale energy storage in monopoly power markets," Applied Energy, Elsevier, vol. 240(C), pages 986-1002.
    9. Mads Raunbak & Timo Zeyer & Kun Zhu & Martin Greiner, 2017. "Principal Mismatch Patterns Across a Simplified Highly Renewable European Electricity Network," Energies, MDPI, vol. 10(12), pages 1-13, November.
    10. Schmid, Eva & Knopf, Brigitte, 2015. "Quantifying the long-term economic benefits of European electricity system integration," Energy Policy, Elsevier, vol. 87(C), pages 260-269.
    11. Scholz, Yvonne & Gils, Hans Christian & Pietzcker, Robert C., 2017. "Application of a high-detail energy system model to derive power sector characteristics at high wind and solar shares," Energy Economics, Elsevier, vol. 64(C), pages 568-582.
    12. Kılıç Depren, Serpil & Kartal, Mustafa Tevfik & Ertuğrul, Hasan Murat & Depren, Özer, 2022. "The role of data frequency and method selection in electricity price estimation: Comparative evidence from Turkey in pre-pandemic and pandemic periods," Renewable Energy, Elsevier, vol. 186(C), pages 217-225.
    13. Tom Brown & Mirko Schäfer & Martin Greiner, 2019. "Sectoral Interactions as Carbon Dioxide Emissions Approach Zero in a Highly-Renewable European Energy System," Energies, MDPI, vol. 12(6), pages 1-16, March.
    14. Brown, T. & Schlachtberger, D. & Kies, A. & Schramm, S. & Greiner, M., 2018. "Synergies of sector coupling and transmission reinforcement in a cost-optimised, highly renewable European energy system," Energy, Elsevier, vol. 160(C), pages 720-739.
    15. Das, Choton K. & Bass, Octavian & Kothapalli, Ganesh & Mahmoud, Thair S. & Habibi, Daryoush, 2018. "Optimal placement of distributed energy storage systems in distribution networks using artificial bee colony algorithm," Applied Energy, Elsevier, vol. 232(C), pages 212-228.
    16. Otsuki, Takashi, 2017. "Costs and benefits of large-scale deployment of wind turbines and solar PV in Mongolia for international power exports," Renewable Energy, Elsevier, vol. 108(C), pages 321-335.
    17. Charalampos Papadopoulos & Athanasios Bachoumis & Niki Skopetou & Costas Mylonas & Nikolaos Tagkoulis & Petros Iliadis & Ioannis Mamounakis & Nikolaos Nikolopoulos, 2023. "Integrated Methodology for Community-Oriented Energy Investments: Architecture, Implementation, and Assessment for the Case of Nisyros Island," Energies, MDPI, vol. 16(19), pages 1-20, September.
    18. Lehmann, Paul & Ammermann, Kathrin & Gawel, Erik & Geiger, Charlotte & Hauck, Jennifer & Heilmann, Jörg & Meier, Jan-Niklas & Ponitka, Jens & Schicketanz, Sven & Stemmer, Boris & Tafarte, Philip & Thr, 2021. "Managing spatial sustainability trade-offs: The case of wind power," Ecological Economics, Elsevier, vol. 185(C).
    19. Goop, Joel & Odenberger, Mikael & Johnsson, Filip, 2017. "The effect of high levels of solar generation on congestion in the European electricity transmission grid," Applied Energy, Elsevier, vol. 205(C), pages 1128-1140.
    20. Brown, Patrick R. & O'Sullivan, Francis M., 2020. "Spatial and temporal variation in the value of solar power across United States electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:183:y:2022:i:c:p:524-534. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.