November 2019

Effective integration of

Distributed Solar PV

Project summary

2

The team

3

The environment Nov 2014

December 2014

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$/W

p German spot market prices for polycrystallinemodules from Europe

86 % drop in the last 10

years

Reduction of solar PV

investment

Competitive LCOE

compared with other

technologies

Improvement in

monitoring solutions

Enhancement of the

technology

characteristics

Nowadays, distributed generation and integrated local

energy systems are an affordable solution

4

Cost of the electricity supply in

the consumption location based

on distributed solar PV

€600/kW

1,700 x 25

= c€1.4/kWh

Investment:

€600-1,000/kW

Production in

Madrid area:

1,700 kWh/kW

Useful life: 20-

30 years

Maintenance

cost: no relevant

The environment

5

The scope: distributed solar PV

Integration approach: demand + solar

PV + batteries

Optimal sizing of solar PV equipment

and storage devices according to

consumption patterns and radiation

profile: affordable business models

Impact on wholesale market price

Impact of the solution on the electricity

system reliability: static and dynamic

assessment

Recommendations: business,

regulation and technical

Test in

different EU

environments:

Greece

Poland

Lithuania

Germany

Spain

6

Distributed

solar PV:

Prosumer

Electricity

wholesale

market (pool)

Electricity

(export)

€

Electricity

system (DSO)

Electricity

retail market

(retailer)

Electricity

system (DSO)

Electricity

(import)

€

The solution is sized according to the consumption profile, the

irradiation pattern (electricity production) and the energy storage

devices characteristics, taking into consideration different regulatory

frameworks: net metering, feed in tariff, the retail and wholesale

electricity prices, etc.

The method for sizing the solution

7

The case studies More than 80 case studies

Economic affordable solution,

IRR higher than 7% (in some

EU locations higher than 10%)

Relevant self-sufficiency.

Depending on the

consumption profile, up to 60%

The effectiveness of the

solution is based on self-

consumption rather export

energy to the market

Currently, the storage reduces

the return of the investment

Example: Residential prosumer in Germany

8

The impact of the distributed solar PV on the wholesale market

Simulating the Spanish pool with 1 TWh of distributed solar PV, the price had dropped:

€0.44/MWh in 2015

€0.37/MWh in 2016

€0.35/MWh in 2017 0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

0.00

1150

.00

2300

.00

3450

.00

4600

.00

5750

.00

6900

.00

8050

.00

9200

.00

1035

0.0

011

500.

00

1265

0.0

013

800.

00

1495

0.0

016

100.

00

1725

0.0

018

400.

00

1955

0.0

020

700.

00

2185

0.0

023

000.

00

2415

0.0

025

300.

00

2645

0.0

027

600.

00

2875

0.0

029

900.

00

3105

0.0

032

200.

00

3335

0.0

034

500.

00

3565

0.0

036

800.

00

3795

0.0

039

100.

00

4025

0.0

041

400.

00

4255

0.0

043

700.

00

4485

0.0

046

000.

00

4715

0.0

048

300.

00

4945

0.0

050

600.

00

5175

0.0

052

900.

00

5405

0.0

055

200.

00

5635

0.0

057

500.

00

5865

0.0

059

800.

00

Pri

ce (

€/M

Wh

)

Energy (MWh)

Supply and demand

SupplyDemand

Price

Self-consumption

Demand’ Supply’

Energy surplus due to distributed generation

2017 Day_Ahead_Auction Model_Price NoPV_Model_Price Mean Price 34.20 34.19 40.47 Peak Price 37.99 37.90 49.67 None Peak Price 30.41 30.48 31.28

2016 Day_Ahead_Auction Model_Price NoPV_Model_Price Mean Price 28.98 28.98 33.96 Peak Price 31.93 31.83 41.14 None Peak Price 26.03 26.14 26.78

Germany

9

The impact of the distributed solar PV on reliability of the system

Static and

dynamic

assessment,

simulating

the impact of

different

levels of

distributed

PV

penetration

on the

electricity

flows

Voltage control: reduction of this

variable volatility with reference to

the voltage reference

Reduction of losses in the

transmission and distribution grid

Reduction of the load of circuits

Reduction of risk exposure with

reference to incidents in the

system (contingencies)

Solar PV increases the impact of

frequency drops. Batteries mitigate

this impact.

10

Recommendations In progress

The solar PV panels can cover most of the demand at sunlight

hours while the rest of the time the electricity is purchased from the

grid: self-consumption

Relevant economic savings in the variable and fixed prices.

Clustering prosumers is an effective approach: optimization in the

investment process and in the self-consumption (reduction of

electricity excesses).

Net metering approach could promote the installation of distributed

solar PV, but it is not an optimal method.

The effective integration of prosumers to provide energy/services

to the market/system operators require to establish intermediaries

(aggregator): optimizing.

11

Recommendations In progress

It is necessary to establish a regulatory framework for the

aggregators activities (integration with the market and system

operators).

In order to incentivise the distributors to collaborate in the large

penetration of distributed generation, economic incentives has to be

established based on the positive impact of this solution.

It is pending to decide the information flow of the distributed solar PV

with the DSO and TSO, and the monitoring process.

The usage of batteries to enable the penetration of distributed solar

PV requires the reduction of its costs to around €120/kWh

Batteries is an accurate solution to provide frequency control

services.

The effective management of the electricity system requires to

establish connection grid criteria for large distributed solar PV

penetration.