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Capacity credit and market value analysis of photovoltaic integration considering grid flexibility requirements

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  • Li, Yanxue
  • Zhang, Xiaoyi
  • Gao, Weijun
  • Ruan, Yingjun

Abstract

Rising share of integrated variable renewable energy production may create power curtailment and renewable market value drop. In this work, the states of examined objectives that experienced rising photovoltaic (PV) penetration are described, challenges considering ramp rates and renewable curtailment illustrated. Meanwhile, a renewable capacity credit analysis approach was introduced, scenarios for PV integration were illustrated through an integration model considering the grid operational constraints, and the resulting PV power capacity credit was also presented. Results indicated that surplus generation presented significant monthly variations, and PV capacity credit value presented a lower increasing rate with rising integrated PV power capacity. The effect of a rising integrated PV power system on electricity trading price was illustrated based on open market data. The value of real-time market trading price presented a decreasing trend in response to a rising contribution of PV power production to flexible load. A decrease was obvious at initial rising integrated PV production, and more than half a drop was observed when flexibility limitation was reached. Furthermore, the economic performance of power to heat and power to gas for excess PV power production utilization was assessed and compared, annual utilization ratio plays a crucial role in their cost competitiveness.

Suggested Citation

  • Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Ruan, Yingjun, 2020. "Capacity credit and market value analysis of photovoltaic integration considering grid flexibility requirements," Renewable Energy, Elsevier, vol. 159(C), pages 908-919.
    • Handle: RePEc:eee:renene:v:159:y:2020:i:c:p:908-919
    DOI: 10.1016/j.renene.2020.06.054
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    2. Ziqi Liu & Tingting Su & Zhiying Quan & Quanli Wu & Yu Wang, 2023. "Review on the Optimal Configuration of Distributed Energy Storage," Energies, MDPI, vol. 16(14), pages 1-17, July.
    3. Cai, Qiran & Qing, Jing & Xu, Qingyang & Shi, Gang & Liang, Qiao-Mei, 2024. "Techno-economic impact of electricity price mechanism and demand response on residential rooftop photovoltaic integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    4. Nilton Bispo Amado & Erick Del Bianco Pelegia & Ildo Luís Sauer, 2021. "Capacity Value from Wind and Solar Sources in Systems with Variable Dispatchable Capacity—An Application in the Brazilian Hydrothermal System," Energies, MDPI, vol. 14(11), pages 1-26, May.
    5. Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Xu, Wenya & Wang, Zixuan, 2022. "Operational performance and grid-support assessment of distributed flexibility practices among residential prosumers under high PV penetration," Energy, Elsevier, vol. 238(PB).
    6. Zhao, Mingzhe & Wang, Yimin & Wang, Xuebin & Chang, Jianxia & Chen, Yunhua & Zhou, Yong & Guo, Aijun, 2022. "Flexibility evaluation of wind-PV-hydro multi-energy complementary base considering the compensation ability of cascade hydropower stations," Applied Energy, Elsevier, vol. 315(C).
    7. Xiaoyi Zhang & Weijun Gao & Yanxue Li & Zixuan Wang & Yoshiaki Ushifusa & Yingjun Ruan, 2021. "Operational Performance and Load Flexibility Analysis of Japanese Zero Energy House," IJERPH, MDPI, vol. 18(13), pages 1-19, June.
    8. Xu, Tingting & Gao, Weijun & Qian, Fanyue & Li, Yanxue, 2022. "The implementation limitation of variable renewable energies and its impacts on the public power grid," Energy, Elsevier, vol. 239(PA).
    9. Rehman, Obaid Ur & Khan, Shahid A. & Javaid, Nadeem, 2021. "Decoupled building-to-transmission-network for frequency support in PV systems dominated grid," Renewable Energy, Elsevier, vol. 178(C), pages 930-945.

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    Keywords

    Capacity credit; Grid flexibility; Spot trading price; P2H; P2G;
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