Status Report on Power System Transformation: A 21st Century Power Partnership Report

Abstract

Power systems are among the largest and most complex systems ever created by humans. Transforming them will be a correspondingly complex process. As chronicled in previous reports from the 21 st Century Power Partnership, power system transformation has multiple drivers-for example technological advances, policy goals, and social changeand multiple enablers, especially policy, financial, and technical innovation. Perhaps one of the most significant trends in power system transformation is the growing democratization and diversification of supply. Enabled by technological, policy, and business model innovations, power systems are moving from being purely centralized systems to a more complex and interacting set of systems at multiple levels. In particular, transformation entails more decentralized assets, where consumers gain more ability to choose, and where distributed solutions are an integral part of the electricity system. These innovations are fueling the growth of energy entrepreneurship, disrupting traditional energy business models and enabling new models for achieving secure, affordable, and clean power systems. In turn, this evolution has implications for the regulatory compact, in which regulated monopolies are increasingly subjected to competition not only to promote cost reductions, but also to introduce more innovation, improved reliability, and greater environmental sustainability. v This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications.

Grid Integration of Renewable Energy: Flexibility, Innovation, and Experience

“…Such efforts may be driven by the emerging imperatives of grid integration, or they may be part of broader electricity market reforms focused on market or system efficiency. In the United States, beyond California, the power grids of the Midwest (MISO), the Mid-Atlantic (PJM), New York, Texas (ERCOT), and Hawaii are all undertaking or considering a wide variety of measures for transmission, demand response, distributed generation, market design, ancillary services, and/or distribution systems, in parallel with national policy changes by the federal energy regulator [the Federal Energy Regulatory Commission (FERC)] (2,32,(62)(63)(64)(65)(66). In Europe, numerous European Union (EU)-wide initiatives are underway related to grid integration by 2020 and beyond, including transitions in EU electricity market designs, long-term transmission planning, and planning flexible coal and gas plants (41,(67)(68)(69).…”

“…Spain, a wind power leader, pioneered advanced grid controls and wind forecasting and has relied on its hydro resources for balancing, in addition to planning for larger grid balancing areas. Ireland, also a leader in wind power (supplying more than 50% of the country's power on some days), has been undertaking transmission strengthening and a cross-border energy market with the United Kingdom, along with better wind forecasting and grid planning to improve both flexibility and stability (2,32,(70)(71). In Australia, the state of South Australia, with a 30% wind power share in 2014, has also developed advanced wind forecasting and has been grappling with grid flexibility and electricity market volatility given its relative isolation from other grids (40).…”

“…The electric power sector around the world is being transformed in fundamental ways, not just technically, but also in terms of policy, markets, finance, and institutions. Electric power companies face some of the greatest challenges in planning, operations, and investment they have ever faced, as well as a paradigm shift in many of the fundamental tenets that have guided electric power systems for the past several decades (1)(2)(3)(4)(5)(6). And along with new technologies, a range of new market and business models are emerging, open to a broader array of energy service companies, energy traders, and other market participants (7)(8)(9)(10)(11)(12).…”

“…A vast amount has been published in just the past few years, at an accelerating rate. A lot of the literature is technical or engineering in nature, but a growing share concerns the planning, markets, institutions, regulation, economics, and business models that accompany the transition to higher shares of renewables (2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12). This article looks at a key aspect of this literature: the flexibility or balancing challenge of ensuring that "the lights stay on" in the face of high shares of variable renewable energy sources, particularly wind and solar.…”

Clean Energy Manufacturing Analysis Center. 2015 Research Highlights -- Carbon Fiber

“…The influences of these drivers, combined with finance and business model innovations, are driving the growth of clean energy technologies, opening the market to new producer and consumer segments globally (Stark et al 2015). The 21 st Century Power Partnership, a Clean Energy Ministerial initiative, lists innovations in business models and entrepreneurship, policy making, planning processes, operational practices, finance, regulation, and stakeholder engagement among additional forces helping drive the transformation to cleaner power systems (Miller et al 2015).…”