Integration ofRenewable Energy Sourcesand Distributed Generationin Energy Supply Systems

I N T E G R A T I O N

E u r o p e a n C o m m i s s i o n

Community Research

ENERGY, ENVIRONMENTAND SUSTAINABLE DEVELOPMENT

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1

The European citizens are increasingly concerned by how to properly respond to global climate change. In addition, the recent crisis, following oil price instabilities, has demonstrated once more the vulnerability of the European energy supply. The European Commission have recently adopted a Green Paper entitled “Towards a European Strategy for the Security of Energy Supply” discussing what should be done to prepare EU for these long term challenges. Such a debate is critical, as in the EU the demand for energy and, in particular, for electricity will continue to increase in the next 20-30 years and meeting the challenge of security of energy supply will be key for the development of a dynamic and sustainable economy in Europe.

Global and EU energy supply is currently dominated by combustion of fossil fuels, which results in the emission of the main green house gas (i.e. CO2) which is considered to be linked to global warming. A shift towards sustainability based on new (e.g. hydrogen and fuel cells) and renewable energy sources (wind, biomass, solar, PV, etc.) is necessary, but needs substantial and continued RTD effort which has to be supported jointly by industry and public sources in the EU. The recent liberalisation of the energy and electricity market is generating important changes, such as the development of distributed or “embedded“ generation, which represent not only challenges, but also opportunities that need to be exploited.

The take-off foreseen by the White Paper on Renewable Energy Sources and the development of distributed generation necessitates the immediate provision of conditions for access and effective integration into the existing and evolving energy networks, as well as the preparation of the next generation of energy production and distribution infrastructure. Such an infrastructure will need to manage flexibly and effectively the supply of many thousands of small generators and a few hundred big ones to a huge and highly variable demand.

The single EU energy and electricity markets need to respond rapidly to these challenges in order to gain the full potential of the opportunities offered by new technologies. The obstacles are however not only technological, but include also normative and regulatory issues which require multidisciplinary action involving social and economic, as well as scientific research, to address policy, legal and administrative barriers.

The establishment of a European Research Area for the integration of renewables and other sources of energy generated in a decentralised manner will help to accelerate the change of the energy supply paradigm and achieve the objectives of sustainability and security of supply for the EU. Joint European efforts stimulating the symbiotic interactions of new and renewable energy technologies, advanced storage and conversion systems, systems engineering, information and communication technologies and ad-vanced electronics are currently under way and will hopefully result in new approaches to manage and operate the energy networks of the future, able to ensure a stable and reliable supply responding to the quality requirements of demanding customers operating in the knowledge economy.

Foreword

2

INTEGRATION

Integration of Renewable Energy Sources and Distributed

Generation in Energy Supply Systems

Glossary of Terms

CHP: Combined Heat and PowerDCS: Distributed Control SystemsDG: Distributed GenerationDSO: Distribution System OperatorERA: European Research AreaERG: Embedded Renewable GenerationIPP: Independent Power ProducerRTD&D: Research, Technological Development and DemonstrationRES: Renewable Energy SourcesSME: Small and Medium-sized EnterprisesSCADA: Local Supervisory Control And Data AcquisitionWT: Wind Turbine

Contents

Introduction 3

State-of-the-Art of the Technologies 5

Barriers to the Integration of Renewable Energies and Distributed Generation 9

Why Distributed Generation is Important for the Future 10

What is the EU Doing to Improve the Integration of RES and Distributed Generation 11

Overview of Integration-related RTD&D Projects in the EU Fourth and Fifth Framework Programmes 12

Creating the European Research Area: European Networks, Infrastructures and Forums 15

References 16

3

The White Paper “Energy for the Future: Renewable Sources of Energy - for a Community Strategy and Action Plan” has set the target to achieve a minimum objective of 12% penetration of renewable energy sources (RES) in the European Union by 2010. Each member country is encouraged to produce a higher share of its energy supply from renewable sources. Yet, the existing energy supply system in the European Union has up to now substantially been based on large central stations, mostly fossil fuelled, with capacities of several hundreds of MW each.

Due to the ongoing process of deregulation of the European energy market, the unbundled energy sector is now gaining experience with competition in electricity generation, distribution and trading. With free access to the distribution networks and suitable energy wheeling conditions, new players will arrive in the competitive market, further supporting the already existing trend towards more decentralised power generation, which has mainly been induced by the increasing integration of RES. This development will lead to many technological as well as regulatory challenges and will require a further development of the legal and policy framework conditions.

Three independent trends - utility industry restructuring, increasing use of RES, and technology advancements - are laying the groundwork for the wi-despread introduction of cleaner technologies and decentralised generation. Through this development, more and more emphasis has to be given to aspects related to the systems technology for the integration into present energy networks.

Integration of RES and distributed generation (DG) refer to the integrated or stand-alone use of small, modular energy conversion units close to the point of consumption. Integration of RES and DG differs fundamentally from the traditional model of central generation and delivery in that it can be located near end-users. Locating RES and DG downstream in the energy distribution network can provide benefits for customers and the energy distribution system itself. By making use of waste heat close to the end user, the efficiency of the energy supply is significantly improved. In addition, distributed facilities can be operated remotely and used in a broad range of customer-sited and grid-sited applications where central plants would prove impractical.

The increasing penetration of renewable energy sources and distributed ge-neration (heating/cooling and electricity) in the European energy supply will lead to numerous technical and non-technical challenges. New efforts have to be undertaken for the development of new devices for the management of energy networks, integration of RES and DG in the distribution networks, systems for load management and shaping, as well as socio-economic aspects of decentralised energy markets.

Finally, developments improving the integration of RES and DG, such as electronic control systems, communications for remote monitoring and other information technologies, can revolutionise the production and distribution of electricity and, similar to internet, create new market opportunities in a huge e-electricity market.

Introduction

4

What means

“Distributed

Generation”?

Distributed generation covers all technical and non-technical aspects of an increased use of RES and other decentralised generation units in distribution networks. This approach is fundamentally distinct from the traditional central plant model for energy generation and delivery. Distributed generation can be defined as the integrated or stand-alone use of small, modular electricity generation resources by utilities, utility customers and private individuals or other third parties in applications that benefit the electric system, specific end-use customers, or both.

Traditional Power Supply System Distributed Generation System

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In the power sector, today‘s electrical delivery systems are well suited to do what they were designed to do: deliver electricity from multiple large generators to serve multiple dispersed loads. The vast majority of existing generating facilities are central plants connected to networked transmission systems. Utilities have limited experience, however, interconnecting large amounts of small-scale generation to their distribution systems.

Looking across the borders, the USA show that especially reciprocating engines and gas turbines have been rapidly building a presence in the electric utility industry. These decentralised applications continue to grow steadily: Backup power at 7% p.a., baseload covering systems at 11% p.a., peaking covering applications at 17% p.a.

The European development of distributed power generation has so far mainly been driven by the necessities to increase the use of RES. Apart from hydroelectric power and biomass, wind power has up to now accounted for the major part of this development with mean annual growth rates of 38% between 1993 and 1999. Various utilities in Germany and Denmark have already achieved the installed wind power in the range of the minimum load of their grid, thus temporarily reaching 100% load coverage by wind. Through this development, questions of the power contributions made by wind energy, and their influence on the operation of thermal power stations, are increasingly coming into focus. Currently, utility-wide wind power monitoring systems are being developed.

Technologies bundled into the distributed generation system will incre-asingly include interfaces for connection to local supervisory control and data acquisition (SCADA), distributed control systems (DCS) and/or Internet/Intranet systems. Other technologies that are necessary for a complete system include developments in:

�• Metering�• Protection and control�• Remote monitoring and fault diagnosis�• Automated (decentralised) dispatch and control�• Site optimisation of electrical/thermal outputs

The following sections offer a short description of the generally applied technologies for distributed power generation.

State-of-the-Art of the

Technologies

Powerful Development of Wind Energy

6

Small Hydroelectric Power

Small hydropower plants rated at an installed capacity of 10 MW or less cur-rently contribute with more than 37 TWh/a to about 2,5% of the European electricity market. Based on a fairly stable growth rate of 3% p.a. over the last decades by means of modernisation, reconditioning and exploitation of new sites, about 50% of the remaining small hydro power resources in Europe is expected to be developed by 2015. Besides technically mature and economically attractive mean and high head sites, run-off river low head installations are expected to contribute substantially to the future development. Improved turbine designs, cost effective plant construction in combination with new technologies and improved control and operating strategies have the potential to reduce the high initial cost as one main barrier for the future exploitation.

Wind Power

Modern wind turbines convert wind power to electrical power, with a rated generator power of marketable models currently ranging up to 2.5 MW. Hub-heights reach more than 100 meters, rotor diameters are typically 65 m for 1.5 MW machines. Rotor construction is either variable blade angle (pitch regulation) or non-variable, conversion from mechanical to electrical energy is via either synchronous or induction generators. Synchronous generators are usually equipped with pulse width modulated converters, control of these converters is essential for regulating the behaviour of the windmill on the electric grid, e.g. reactive power adjustment.

The technical availability of marketable systems has reached 98 to 99%, typi-cal turnkey costs of wind power projects are around 900 to 1,100 EUR/kW.

Photovoltaic Power

Conversion of solar energy to electrical energy has been technically possible since the late 1930’ s. A main objective is to bring down the high cost of photovoltaic systems, 6,000 EUR/kW still being common. Typical applications of photovoltaic cells include small installations of < 10 kW on building rooftops or remote systems that can not be connected to the electricity grid. There are, however, EU projects and national programmes to promote (large) grid connected systems. Grid connection is usually made through an inverter and the grid accepts all power from the photovoltaic system.

Source: SMA Regelsysteme GmbH

Source: Städtische Werke Kassel

7

Combined Heat and Power (CHP) Plants

Combined heat and power plants use the fuels for the production of both electric power and heat, thus working with a high efficiency. Compared to traditional boiler plants and conventional electricity production, those plants are able to save approximately 30% of the primary energy consumption. Furthermore, this leads to a reduction of carbon dioxide (CO2) emissions by roughly 0.5 kg per kWh electricity produced.

This type of energy supply is especially useful for consumers with a conti-nuous and steady-going heat demand.

Micro-Turbines

Micro-turbines operate on the same principles as traditional gas turbines. Typical is a very high number of RPM of the turbine and generator, such as 70,000 to 120,000 RPM.

The generator produces high frequency AC power that is converted to 50 Hz by power electronics. Typical power ratings could range from 25-500 kW although multiple units may be directly interconnected to provide up to several MW. Capital costs are expected in the 500-1,000 EUR/kW range and electrical efficiencies should range from 27-32%. Utilising the exhaust heat can improve the overall efficiency up to 80%.

Fuel Cells

Fuel cells are able to convert fuels and oxygen into electricity, heat and water. Fuel cells are similar to batteries in that they both use an electrochemical process to produce a DC current. Both batteries and Fuel Cells consist of two electrodes separated by an electrolyte. Unlike batteries, fuel cells electro-chemically convert the energy in a hydrogen-rich fuel directly into electricity and operate as long as the fuel stream lasts. Fuel cells are characterised by the type of electrolyte used; examples include alkaline, proton exchange membrane, phosphoric acid, molten carbonate and solid oxide. Depending on the electrolyte the fuel cell operates between 80 and 1,000 °C, ignoring this produced heat fuel cell efficiency can range between 35-65%. Utilising the produced heat can raise the efficiency to over 80%. Target capital costs (assuming large volume manufacturing) range from 800-1,300 EUR/kW.

New small fuel cell developers who were previously aiming at the transporta-tion markets see residential generation at about 1-10 kW power rating as a lucrative market.

Source: ABB

Source: Ballard Power Systems Inc.

8

Hybrid Power for Community Energy Services

The term hybrid power is used to describe any power system with more than one type of generator. Hybrid power systems usually consist of a conventional generator powered by a diesel or gas engine/turbine and a renewable energy source such as solar, wind, or hydroelectric. Batteries are often included in hybrid systems for a continuous power availability and/or more steady-going diesel operation.

Today, hybrid systems are case-specifically conceived and thus uniquely desi-gned and constructed. Due to this, the costs of engineering and systems technology make up a considerably large part of the total costs. In compari-son to conventional power systems the expenditure on planning, installation and maintenance is therefore significantly higher for hybrid systems with renewable energies. It is particularly in this field that there is a large potential for cost reduction by standardising the systems technology. As the complexity of hybrid plants increases – e.g. by integrating different renewable energy forms – both the systems-design method and the co-ordination of the components control gain in importance.

Mini-Grids

Mini-grids are small electrical distribu-tion systems that connect multiple cu-stomers to multiple sources of gene-ration and storage. Mini-grids are ty-pically characterised by multipurpose electrical power service to communities with populations ranging up to 500 households with overall energy demand ranging up to several thousand kWh per day, as it can be found e.g. on Greek islands.

In comparison with stand-alone hybrid systems, the obvious advantage of con-necting more production plants via mi-nigrids is the enlargement of rated power of the system. This also means an improved reliability by having mul-tiple sources of generation connected to the user.

Mini-grids on the Greek island of Kythnos - two end user systems of the European Union projects MORE and PV-MODE

Source: SMA Regelsysteme GmbH

9

The future expansion of RES and other not yet competitive distributed generation units will have to develop facing various ambitious policy targets and support schemes on the one hand and increasing liberalisation of European energy markets on the other.

The barriers to a better and faster integration of RES and other distributes generation systems can be classified in three categories: policy and legal barriers, administrative barriers and technical barriers.

Policy and Legal Barriers:

�• Unconformity between technical interfaces and legal frameworks, as the Distribution System Operator (DSO) is not the owner of the RES or decentralised generation unit.

• �Lack of regulatory framework for the interaction between a variety of decentralised generation operators and DSO regarding indemnification and insurance.

�• Not clarified European-wide responsibility for quality and reliability of energy supply and legal framework for grid access and power wheeling.

Administrative Barriers:

�• Lack of standardised contracts for interconnection of decentralised generation units.

�• Variety of contracts with different decentralised generation operators and corresponding account procedures.

�• Limited experience with monetary assessment of additional values (e.g. peak shaving, load management) or additional expenditure of decentralised generation and realisation in contracts.

�• Lack of tariffs for demand shapes, backing services, distribution wheeling, etc.

�• Lack of acceptance of emerging regulatory necessities.

Technical Barriers:

�• Lack of standardised power interfaces between decentralised generation units and distribution network.

��• Lack of standardised communication interfaces for control and super-vision of decentralised generation units and of the distribution network.

��• Lack of suitable control strategies and procedures for electrical supply systems with high decentralised generation penetration.

��• Lack of strategies and procedures for decentralised ancillary services (frequency and voltage control) on different voltage levels.

��• Lack of experience with the operation of electrical supply systems with high penetration of RES as an intermittent energy source.

Barriers to the

Integration of

Renewable Energies

and Distributed

Generation

10

The integration of RES and other decentralised generation into energy supply systems shows a variety of qualities, which fulfil those require-ments to a very large extent.

�• DG helps to cut pollution, by provi-ding new technologies which allow our buildings, vehicles, manufactu-ring industries and electricity gene-ration plants to use fossils fuels - or biofuels - more efficiently.

��• DG makes possible the use of clean, renewable sources of energy, reducing the rate at which our oil reserves are consumed, and equip-ping us to produce the power we still need when the oil starts to run out.

• DG makes significant contribution to Europe’s industrial competitive-ness, e.g. by helping to maintain Europe’s global lead in the markets for renewables, clean coal tech-nologies and new decentralised markets.

• DG systems can be installed in short time. Speed of implementation and the modular nature of this techno-

Why Distributed

Generation is

Important for the

Future

Future energy supply systems will have to meet the requirements of both ope-rating efficiency and sustainability.

This means in detail, that they have to comply with the following require-ments:��• Reliable and cost efficient

tech nologies��• Environmentally and energetically

efficient technologies��• Fully marketable systems��• Rapid decision making process��• Compatibility,

modular expan dability��• Short time for installation

logy allow to efficiently invest in power generation.

• DG opens the energy market for new investors.

In addition, from the electricity indus-try perspective, distributed generation is attractive because it has multiple other values. These values include the following:

�• The generator can be sited close to the end-user, thus enabling a better use of waste heat, and furthermore decreasing transmission and distri-bution costs and electrical losses.

�• Because the generation units are distributed, the “system” may be more reliable. One unit can be re-moved for maintenance or service with only a moderate effect on the rest of the power distribution system.

• �Newer distributed generators can run on fuels generated from bioga-sification. Biomass is a truly rene-wable source of fuel especially in agricultural regions.

Integration of RES and distributed generation refer to the integrated or stand-alone use of small, modular energy conversion close to the point of consumption.

11

As a result of the current revision of the EU Energy Programme, integration of renewable energies has been iden-tified as a Target Action for stimu-lating intense symbiotic interactions with related technologies, e.g. energy management and electronic devices, applied storage technologies and energy conversion systems, safety and quality of the energy supply, etc. The objectives of this Target Action are being reinforced with new policy measures and legislation at national and European level aiming at incre-asing deployment and integration of renewable energy sources within the next 10 years and beyond.

The European Commission has been supporting the integration of rene-wable energy sources and decentra-lised generation since many years within different research, develop-ment and demonstration programs. Main focus has been put on wind energy, storage applications, inte-gration of renewables in buildings, biomass and bio-fuels and on hybrid systems.

What is the EU doing

to improve the

Integration of RES

and Decentralised

Generation

Besides the further support of RTD&D within the framework programme, the Commission now intends to establish, or strengthen already existing, thema-tic networks with main actors and sta-keholders in the field of decentralised energy supply. They shall co-ordinate and streamline the European techno-logical efforts and scientific policies (including national policies) to antici-pate RTD&D related actions towards the sustainable penetration of rene-wable and other energy, generated in a distributed manner. In particular:

�• Compilation of national and Euro-pean Commission research initiati-ves and description of networks, in-frastructures, facilities and centres of competence in the scientific and technical domains of relevance to RES and DG.

�• Conclusions on the state-of-the-art and analysis of related issues and requirements of the various types of RES and DG technologies for their integration in particular European economic sectors at different time horizons.

• Identification of RTD priorities for the sustainable integration of RES and DG into a distributed genera-tion system strategy and within the context of EU policies.

• Stimulation of EU wide RTD actions with sufficient critical mass to have a significant impact on systems and markets of the future.

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In the following, a compilation of exemplary projects funded within the Fourth and Fifth Framework Pro-gramme gives an insight into the wide range of integration activities from technological developments over finan cial issues to economic and market aspects.

Overview of

Integration-related

RTD&D Projects in the

EU Fourth and Fifth

Framework

Programmes

Financial Analysis of the Integration of Renewables in Electricity Supply

The project aims at developing a me-thodology for the economic assess-ment of the impact of the introduction of renewable energy sources (wind, bio-gas from waste, wood gasification, small hydro) into an electrical supply network. The point of view taken is the supply utility and includes both tech-nical and financial issues. The econo-mics associated with the introduction of renewable sources will be compared with those associated with system expanding using conventional and demand-side sources. The methodo-logy developed will be based on simu-lations taking into account random va-riables (availability, hour-by-hour mar-ginal costs, and unplanned shutdown

Components for Modular Renewable Energy Systems

The main objective of the project is to improve the flexibility and reliability of modularly structured electricity supply systems, thus paving the way for stan-dard design of hybrid systems. In this way the introduction of hybrid systems for remote areas in Europe and de-veloping countries will be accelerated. Power supply systems for single and three-phase local-grid electrification for supplying power to different locally dispersed consumers within a restricted area will be investigated. The power range concerned stretches from a few kW up to several 10 kW, which repre-sent an important application potential world-wide.

Conceptional Framework and relevant Key Factors involved in Decentralised Power Supply

of plants, surges in demand, variation on sources). One objective is to deve-lop a common software and metho-dology that will allow simulation of prospective scenarios.

Electricity Tariffs and Embedded Renewable Generation

Renewable generation differs from conventional generation both by its energy source and by its location in the power system. Renewable genera-tion is distributed over wide geogra-phical areas and so is embedded in distribution networks often close to customers. Due to its location, em-bedded generation not only acts as another source of electricity but it can potentially substitute for transmission and high voltage distribution facilities.

Preliminary indications are that tariffs which adequately reward embedded renewable generation schemes for the impact they make on the network losses and capital can lead to a benefit of up to 30% of the retail electricity price. At present however, the plan-ning and tariff arrangements for elec-trical power systems do not recognise this impact which then leads to eco-nomic distortions in general, penalises embedded renewable generation, and may adversely affect the competi-tiveness of ERG and its positioning in the EU electricity supply market.

Preparation of a European Network for Renewable Energy Hybrid Power Systems

This measure has the aim to prepare a European network for hybrid power systems that contain RE generators. The scope of the activities will em-brace small, medium and large island power supplies (1 kW to some 100 MW). The broad application of such hybrid concepts requires a lot of technological agreements including aspects like power quality, safety, in-terfaces, communication and control.

Committees which are able to prepare appropriate European standards have to be established. Activities from dif-ferent countries will be harmonised and actual European projects will be exploited in order to strengthen the competitiveness of the involved European industries and to enable es-pecially SMEs and companies of less favoured regions to contribute to a well defined technology with future prospects.

Investigation on Storage Technologies for Intermittent Renewable Energy – Evaluation and Recommended R&D Strategy

The main objectives of the network are to review and assess existing storage technologies in the context of renewable energy applications, to facilitate exchange of information between the main actors and to pro-pose appropriate RTD actions for the future.

In detail, the objectives are:�• To review all possible storage tech-

nologies the most suited to renew-able energy systems, mainly wind and photovoltaic systems.

�• To compare and assess the most relevant features and then to pro-pose the best scope of application of each storage technology.

�• To deliver the results of past and current research carried out on a national or international basis to potential users (laboratories, PV or wind systems suppliers, renewable energy project managers).

�• To facilitate collaboration and exchange among EC-supported research projects in this field.

�• To help identify research priorities and publish a 5-10 years RTD roadmap.

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�• To encourage the formation of new RTD partnerships.

�• To foster co-operation between battery manufacturers and renew-able energies system designers or suppliers.

The Value of Renewable Electricity

The primary objective of the project is to calculate the value of electricity from renewable sources, using several techniques, in different European elec-tricity systems and under different cir-cumstances.

This is important for electricity from renewable sources because it will il-luminate the price at which renewa-bles are competitive without subsidies with other sources of electricity. The market for renewables and the rate of installation should increase. This has a number of follow-on effects:�• It supports distributed electricity

production.�• It supports independent power

production.�• It is likely to increase rural jobs the-

reby supporting the rural economy.• It is likely to increase manufacturing

jobs for renewables technologies.• It will reduce pollution.

neering firms specialised on renewable energies, firms promoting the exploi-tation of RES, regional development agencies and innovation consultancy firms, covering six EU countries and Slovenia, has been set up in order: to promote solutions available that overcome the technical problems as-sociated with the integration of RES into energy grids, to propitiate the implantation of hybrid systems com-bining different RES among them or with conventional systems, and to im-prove the social acceptability of RES.

Open Market Access and Security Assessment System

Main objectives of the project are:• To provide a transparent metho-

dology to assess the dynamic net-work security, the need for topo-logy change, generation reschedu-ling, or load shedding.

• To increase the admissible power flow on electrical lines by a factor of 5% by computing dynamic secu-rity operating limits in real-time.

• To reduce the outages resulting from stability problems by a factor of 50% minimum by computing accurate dynamic security limits.

• To improve the existing generating plant operation by computing the unit commitment according to the dynamic security limits and the electrical market demand.

• To adjust emergency protection schemes in a more accurate way either off-line or on-line (according to field equipment capabilities) by providing an engineering study tool able to reproduce correctly the dy-namics of the electrical behaviour.

• To provide real time dynamic simu-lation tool for operator training.

With free access to the distribution networks and suitable energy wheel-

Renewable Electricity and Liberalised Markets

The project aim is to determine the role of renewable energy in the stra-tegies of electricity utilities across Europe in the context of the liberalisa-tion of the European electricity sector, and to show whether liberalisation is likely to help or hinder the develop-ment of renewable electricity in the six partner countries, and in the EU as a whole. The project has shown how electricity utilities are likely to react to the combined, and potentially conflic-ting, effect of policies encouraging the further use of renewables, and legisla-tion liberalising the electricity market.

Accompanying Measure for the Integration of Renewable Energies into the Energy Systems

The aim is to favour an efficient in-tegration of different renewable ener-gies (wind, biomass and photovoltaic) in the market of energy systems, from a technical, economic and social point of view, in accordance with the EU ob-jectives of doubling the share of RES from 6% today to 12% in 2010, and reducing by 8% the greenhouse gas emission. A European multidisciplinary thematic consortium, involving engi-

15

ing conditions, new players will arrive in the competitive market, further supporting the already existing trend towards more decentralised power generation, which has also been in-duced by the increasing use of RES. This development will lead to many technological as well as regulatory challenges and will also require a fur-ther development of the legal and po-litical framework conditions.

To overcome existing obstacles to in-troduce more RES and decentralised generation, all participating players such as electrical utilities, manufactur-ers of decentralised generation units and components, IPPs, research in-stitutions, project developers, authori-ties, administrations etc. should start a joint information network, best on a broad European level.

Committees which are able to prepare appropriate European standards are to be established. Activities from diffe-rent countries are to be harmonised and actual European projects are to be exploited in order to strengthen the competitiveness of the involved European industries and to enable es-pecially SMEs and companies of less favoured regions to contribute to a well defined technology with future prospects.

An effective European RES and decen-tralised generation networked struc-ture is to be encouraged, taking into account the different interests of the industry and the end-users as well as the intermediate organisations like associations, research institutes and utilities.

The most important groups of actors are the European producers of power units, TSOs, DSOs and independent power producers (IPPs) as well as re-search institutions. Networks‘ exper-tise will help the industry as well as the researchers to identify the RTD&D needs which can be used to define projects that contribute to one strate-gic direction. Networking activities can also avoid unnecessary duplication of work and offer access to a broader community of researchers.

It may be the communications in-terface that undergoes the greatest change over the next several years, the communications interface being expanded to allow RES and decen-

The European Research Area (ERA)

This concept, described in a Commission Communication of October 2000 (COM 612), offers a new horizon for scientific and technological activity and for research policy in Europe. The aim is to create con-ditions that will strengthen and bring tog-ether such policies, making them central to a new economy and knowledge-based society. The Commission recognises that to bring this to reality will require a joint effort by the EU, its Member States and research stakeholders and requires that the shape and content of European research efforts are reassessed. In particular it is sug-gested that there is a need for a more structured approach, to balance technical development and recognise excellence as well as to increase cohesion between EU research activities and those of Member States. However, the objectives are not li-mited to the EU, but extend to greater cooperation on a worldwide basis. It is suggested that the EU should implement cooperation enabling knowledge and tech-nology produced with other economic re-gions, while using the capabilities within the EU to assist developing countries.

In reassessing research activities, it is sug-gested that these should be focused on a more limited number of priorities that can be shown to be of public benefit, with a key concept being one European added value, with a transnational approach, inclu-ding networking of national programmes and centres of excellence, as well as fun-ding of large-scale projects aimed at spe-cific technical objectives linked to econo-mic and social needs. The paper concludes that creating a European Research Area will have many beneficial effects for the EU, its Member States, the scientific com-munity, industry and the European citizens, but to achieve this will require a coordina-ted benefit by all concerned. In turn this will require a conclusive debate on the objectives set and the means of attaining these.

Creating the

European Research

Area: European

Networks,

Infrastructures and

Forums

tralised generation to be controlled and dispatched, responding to market signals. Before such a system can be built, decentralised generation will need access to these markets. An in-terface of this type will necessitate the development of standards and protocols.

This leads to a vision for the future, with non-hierarchical and distributed networks in the form of:

Active Networks

• Two-way power flow• Switching systems for power quality• RES and decentralised generation

resource• Decentralised power storage

resource• ”Intelligent agent control“

(no central dispatch)

Open Networks

• Plug’n Play connectivity• Standardised protection

Energy Trading

• Energy stock market• Variable energy tariffs• Internet-based information

networks• Uniform energy and information

interfaces

16

Indicative RTD subjects are:

• Develop new technologies and concepts for the operation and exploitation of the electricity networks and mini-grids which are able to cope with the integration of RES and other decentralised electricity systems in a European deregulated market. They include systems for frequency and voltage regula-tion (this particularly in view of the increase of non-regulated generation), development of intelligent protection systems, two-way real-time communi-cations integrated into the power system targeted at the control of the power supply and consumption and for the collection and processing of information between the supplier and the clients.

• Socio-economic and pre-normative research related to the liberalisation of energy markets and RES integration.

• Address technical and non-technical issues related to large shares of RES and decentralised energy in overall energy supply which are expected in the long term. This includes measurement of RES and other decentralised energy production systems, as well as prediction and planning techniques for their integration and acceptability, and quantification of externalities and benefits.

• Integration of RES and non-RES energy sources and storage systems, in particular hybrid systems (including co-generation) and stand alone systems, to ensure a cost-effective and reliable energy supply able to cope with any demand fluctuation.

• Critical technologies offering high potential for distributed and decentralised generation, such as micro gas turbines (below the MW range) and small to medium gas turbines (up to 40 MW).

The following table shows important RTD&D tasks for integration of renewable energy sources and distributed generation in energy supply systems.

ReferencesS. Blazewicz, Distributed Generation: System Interfaces - An Arthur D. Little White Paper, Arthur D. Little, Inc., Cambridge, MA, 1999

W. Kleinkauf, F. Raptis, O. Haas, Electrification with Renewable Energies – Hybrid Plant Technology for Decentralised, Grid-Compatible Power Supply, ISET, University of Kassel, Germany, 1997

E.M. Petrie, H. L. Willis, M. Takahashi, Distributed Generation in Developing Countries, in World Bank: Environmental Management for Power Development, Washington, 2000

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RTD&D AREAS

Systems and Concepts• System design and modelling• Component interfacing and

interaction• Control and supervision

Critical System Components for Improved Grid Integration• Power electronics• Energy storage• Energy carriers• Complementary Power Plants

System Planning and Evaluation• Design of electricity supply systems

with high RES penetration levels• Information and Communication

Systems for Decentralised Power Generation

Certification and Evaluation

Test and Measurement Procedures

Applications• Hybrid systems• Micro-grids and Mini-grids

Energy Trading

Socio-economic Issues

IMPORTANT RTD&D TASKS

• Layouts and principles for modular control• Local vs. central control• Scheduling and dispatch of system components• Decentralised power quality management• Standardised protocols for control communication and power exchange• Intelligent protection systems• Tools for flexible modelling and design layout of system configuration

and control

• Converters• Battery systems technology• Flywheels• Hydrogen storage• Micro gas turbines• Fuell cells systems technology

• Integrated Resource Planning techniques for integrated RE technology• Quantification of externalities • Capacity values • Spatial smoothing effects and interaction between multiple RES• Short- and medium-term forecasts• Internet/Intranet

• Standards for certification• Standards for evaluation and prediction of technical/economical

performance

• Standards for tests, monitoring programmes• Standards for measurements

• Technology development• Development and deployment, also in second and third world countries • Electrification strategies, rural electrification • Demonstration and technology transfer • Further education

• Metering and communication for enabling variable energy tariffs• Internet-based information networks for energy trading• Standardised energy interfaces/information interfaces

• Internalisation of energy externalities• Taxation issues and emissions trading• Overall value of RES in the energy mix• Articulation between schemes and policies for RES and environmental

or sectoral policies, including State aid regulations• Contribution of RES to innovation and technical change