• Energy Research

Abstract In recent years, the transition towards low-carbon electricity systems has increased the development of renewable generation and, in turn, of transmission infrastructure. Importantly, developing low-carbon technologies (that are generally located far from load centers) and their associated network infrastructure, may conflict with land uses that are valuable by society (e.g. the presence of national parks, indigenous development, touristic zones, etc.). Appropriately addressing this conflict is key for policy makers and regulators to foster an effective, sustainable, and socially acceptable system expansion. In this context, this work analyzes the effects of accounting for these land-use, socio-environmental externalities on the expansion of the entire power system. For a more effective mitigation of system expansion impacts on land uses, we propose to coordinate the needed investments among the various market participants such as generation developers and network planners. To assess this proposal, we develop a two-stage stochastic program that determines the future generation and network expansions considering both (i) a balance between monetary/investment costs and their corresponding socio-environmental externality costs (derived from the land-use impacts of new electricity investments), and (ii) different levels of coordination among market participants. Hence, we can assess the benefits of various coordination strategies against the actual approach to system expansions with no coordination among developers. By running various case studies based on the Chilean electricity system by 2030, we show that recognition of socio-environmental externalities at the moment of deciding system expansions can have a significant impact on the location of future infrastructure and, remarkably, on the entire mix of new generation projects. Particularly, we found an increase in bulk, transmission-connected solar power generation capacity by circa 25% when land-use externalities are considered in the system expansion problem. This is so because bulk solar power generation projects tend to present less socio-environmental impacts (since the solar power potential is generally higher in deserts and arid regions, away from populated areas) and, up to a certain extent, have the ability to displace the need for other generation technologies, particularly hydropower, located in areas with significantly conflicting land uses. We also demonstrated the benefits of investment coordination in supporting both an increased penetration of solar power generation, and an economically effective and sustainable development of a low-carbon power system in Chile.

Abstract In recent years, the transition towards low-carbon electricity systems has increased the development of renewable generation and, in turn, of transmission infrastructure. Importantly, developing low-carbon technologies (that are generally located far from load centers) and their associated network infrastructure, may conflict with land uses that are valuable by society (e.g. the presence of national parks, indigenous development, touristic zones, etc.). Appropriately addressing this conflict is key for policy makers and regulators to foster an effective, sustainable, and socially acceptable system expansion. In this context, this work analyzes the effects of accounting for these land-use, socio-environmental externalities on the expansion of the entire power system. For a more effective mitigation of system expansion impacts on land uses, we propose to coordinate the needed investments among the various market participants such as generation developers and network planners. To assess this proposal, we develop a two-stage stochastic program that determines the future generation and network expansions considering both (i) a balance between monetary/investment costs and their corresponding socio-environmental externality costs (derived from the land-use impacts of new electricity investments), and (ii) different levels of coordination among market participants. Hence, we can assess the benefits of various coordination strategies against the actual approach to system expansions with no coordination among developers. By running various case studies based on the Chilean electricity system by 2030, we show that recognition of socio-environmental externalities at the moment of deciding system expansions can have a significant impact on the location of future infrastructure and, remarkably, on the entire mix of new generation projects. Particularly, we found an increase in bulk, transmission-connected solar power generation capacity by circa 25% when land-use externalities are considered in the system expansion problem. This is so because bulk solar power generation projects tend to present less socio-environmental impacts (since the solar power potential is generally higher in deserts and arid regions, away from populated areas) and, up to a certain extent, have the ability to displace the need for other generation technologies, particularly hydropower, located in areas with significantly conflicting land uses. We also demonstrated the benefits of investment coordination in supporting both an increased penetration of solar power generation, and an economically effective and sustainable development of a low-carbon power system in Chile.

Modern electricity grids throughout the world, particularly in islands such as Great Britain, face a major problem on the road to decarbonisation: the significantly reduced level of system inertia due to integration of Renewable Energy Sources (RES). Given that most RES such as wind and solar are decoupled from the grid through power electronics converters, they do not naturally contribute to system inertia. However, RES could support grid stability through appropriately controlling the converters, but currently no market incentives exist for RES to provide this support. In this paper we develop a methodology to optimally clear a market of ancillary services for frequency control, while explicitly considering the participation of grid-forming and grid-following inverter-based technologies. We propose a mathematical framework that allows to compute shadow prices for ancillary services offered by a pool of diverse providers: synchronous and synthetic inertia, enhanced frequency response (e.g. from curtailed RES) and traditional primary frequency response (e.g. by thermal generators). Several case studies are run on a simplified Great Britain system, to illustrate the applicability and benefits of this pricing scheme. IEEE Transactions on Sustainable Energy

Modern electricity grids throughout the world, particularly in islands such as Great Britain, face a major problem on the road to decarbonisation: the significantly reduced level of system inertia due to integration of Renewable Energy Sources (RES). Given that most RES such as wind and solar are decoupled from the grid through power electronics converters, they do not naturally contribute to system inertia. However, RES could support grid stability through appropriately controlling the converters, but currently no market incentives exist for RES to provide this support. In this paper we develop a methodology to optimally clear a market of ancillary services for frequency control, while explicitly considering the participation of grid-forming and grid-following inverter-based technologies. We propose a mathematical framework that allows to compute shadow prices for ancillary services offered by a pool of diverse providers: synchronous and synthetic inertia, enhanced frequency response (e.g. from curtailed RES) and traditional primary frequency response (e.g. by thermal generators). Several case studies are run on a simplified Great Britain system, to illustrate the applicability and benefits of this pricing scheme. IEEE Transactions on Sustainable Energy

Abstract The need to decarbonize the power sector through increased participation of renewable generation has originated an escalating necessity for transmission network investments that can be undertaken by a number of market participants, including planning authorities/system operators, network companies and project developers. The expansion of the power network, however, presents various environmental and social conflicts, in particular, with land uses that are valuable by society such as the presence of communities, national parks, protected forests, tourism zones, archaeological sites, etc. In this context of environmental and social awareness, we assess the benefits of two strategies that coordinate network investments among various participants and compare them against the current counterfactual approach, where no coordination is undertaken and thus renewable generation projects are connected to the main transmission system in an individual, project-by-project basis. Through various case studies based on the main Chilean transmission system, we show that the lack of coordination in network investments may present severe impacts in terms of the socio-environmental externalities of transmission network expansions. Furthermore, we demonstrate that attempting to reduce externalities of new network investments without proper coordination of new developments may significantly limit the success of a land use policy associated with network developments.

Abstract The need to decarbonize the power sector through increased participation of renewable generation has originated an escalating necessity for transmission network investments that can be undertaken by a number of market participants, including planning authorities/system operators, network companies and project developers. The expansion of the power network, however, presents various environmental and social conflicts, in particular, with land uses that are valuable by society such as the presence of communities, national parks, protected forests, tourism zones, archaeological sites, etc. In this context of environmental and social awareness, we assess the benefits of two strategies that coordinate network investments among various participants and compare them against the current counterfactual approach, where no coordination is undertaken and thus renewable generation projects are connected to the main transmission system in an individual, project-by-project basis. Through various case studies based on the main Chilean transmission system, we show that the lack of coordination in network investments may present severe impacts in terms of the socio-environmental externalities of transmission network expansions. Furthermore, we demonstrate that attempting to reduce externalities of new network investments without proper coordination of new developments may significantly limit the success of a land use policy associated with network developments.

While the operating cost of electricity grids based on thermal generation was largely driven by the cost of fuel, as renewable penetration increases, ancillary services represent an increasingly large proportion of the running costs. Electric frequency is an important magnitude in highly renewable grids, as it becomes more volatile and therefore the cost related to maintaining it within safe bounds has significantly increased. So far, costs for frequency-containment ancillary services have been socialised in most countries, but it has become relevant to rethink this regulatory arrangement. In this paper, we discuss the issue of cost allocation for these services, highlighting the need to evolve towards a causation-based regulatory framework. We argue that parties responsible for creating the need for ancillary services should bear these costs. However, this would imply an important change in electricity market policy, therefore it is necessary to understand the impact on current and future investments on generation, as well as on electricity tariffs. Here we provide a mostly qualitative analysis of this issue, defining guidelines for practical implementation and further study. Published in journal Energy Policy