Valuing investments in domestic PV-Battery Systems under uncertainty

Do Smart Grids boost investments in domestic PV plants? Evidence from the Italian electricity market

The World's energy consumption has increased drastically over the past several decades, particularly driven by increasing population and economic activities as well as rising living standards with technological advancements. Since the industrial revolution, fossil fuels have been the major source of energy productions, which is today shown as the primary cause of the ongoing climate change and associated environmental challenges in threatening the existence of many living species and human life and comfort. According to the statistics provided by International Energy Agency (IEA),1 the global energy supply was 14 282 Mtoe in 2018 that is 115% higher than that of the value for 1973. Fossil fuels, such as natural gas, coal and oil are still playing a critical role and covering more than 80% of global energy demands. The concerns associated with global warming and depletion of energy sources have been directing the attention to renewable and environmentally-benign energy solutions. However, efficient, affordable, and nature-friendly energy storage systems are the key to using renewable energy sources effectively. In this study, a comprehensive literature search is conducted to study and bibliografically evalute Canada's energy storage research and development activities over the last five decades. The present study intends to present the cumulative picture on energy storage reseach and development efforts and assess how universities, research institutes and funding agencies have contributed to this particular field. The literature search compiles a total of fifty-year data on energy storage-related research and development activities conducted in Canada. The number of conducted studies associated with energy storage regarding research articles, books, research projects, dissertations, and patents is presented in the period from 1971 to 2021. Furthermore, the Canadian institutes are ranked based on their scholarly ouputs and publications to indicate the most productive ones in the field of energy storage based on the data presented in the literature sources. Energy storage is described as the capture of harvested energy for later use to maintain the balance fluctuations between energy demand and supply. As the world moves towards a low-carbon economy, energy storage systems are exepcted to even play a more critical role in extracting more energy from renewable resources.10 The intermittent characteristic of renewable resources, specifically solar and wind, is one of the major challenges ahead of a reliable and steady renewable energy supply. This can be avoided by storing excess energy to re-use when the renewable resources are not sufficient or unavailable. Energy storage systems can be categorized in different ways in regards to the form of converted and stored energy. Figure 1 presents an overview of energy storage system categories which are considered in this study. It is important to note that chemical energy storage allows to storage and transportation of large amounts of energy for long distances with minimal self-discharge rates, which is crucial for the distribution and effective use of renewable energy resources. Figure 2 presents the energy density of various chemical fuels and batteries. Despite possessing high energy density, environmental concerns associated with the production and consumption of fossil-based chemical fuels, e.g. diesel, gasoline or natural gas, should be adrressed. In regards to nature-friendly chemical energy storage, particularly power-to-gas chemical storage, hydrogen is attracting favorable attention nowadays. In this regard, hydrogen appears to be the lightest and most abundant chemical element in the universe, but is not available freely (by itself). However, it occurs naturally within a compound such as water (H2O); therefore, it is an intermediate energy form. Excess electricity from renewables can be utilized in hydrogen production processes, i.e. electrolysis of water, to store energy in chemical form. Power-to-hydrogen chemical energy storage is a unique and clean method, and it can be compatible with electrochemical storage since hydrogen possesses much greater energy content. One of the major challenges with hydrogen is the low calorific value per unit of volume (MJ/m3) due to its low density. This can be avoided by deploying alternative hydrogen carriers, such as ammonia. Liquefaction at atmospheric conditions, high hydrogen atom content and high energy density characteristics make ammonia a favorable medium for storage and transportation of energy. It is further to note that batteries and capacitors are devices allowing electrochemical storage of electricity. The potential energy is stored in chemical form in batteries, while capacitors are expected to store their potential energy in the form of an electric field.14 Batteries are thus most commonly used and matured options that propose high energy densities and voltages. Lithium-ion (Li-ion), sodium-sulphur (NaS), nickel-cadmium (NiCd), lead acid (Pb-acid), lead-carbon batteries, zebra batteries (Na-NiCl2) and flow batteries are the existing battery types used in various applications. Due to their high specific energy (per unit weight) and high specific energy (per unit volume), lithium batteries attract considerable attention in electrical energy storage. Capacitors can be classified as electrostatic capacitors, electrolytic capacitors, and electrochemical capacitors, among which electrochemical, so-called supercapacitors, promote the highest capacitance per unit of volume owing to a porous structure 15. As a mechanical energy storage method, pumped hydro accounts for more than 95% of the global installed energy storage capacity.15 The main advantage of mechanical energy storage is to readily deliver energy. The method is easy to adapt for conversion and storage of energy from various sourcessuch as water current, wave, or tidal. Pumped hydro, compressed air, and flywheel are the commonly practiced mechanical energy storage methods. Pumped hydro and compressed air are bound to specific geographical characteristics, which is the main restriction for the implementation of these energy storage methods. A flywheel stores the energy obtained from a rotor mass spinning at very high speeds as kinetic energy. The stored kinetic energy can be later used to produce electricity by altering the angular velocity of the flywheel through a decelerating torque and using an electric motor in reverse 16. Despite of being non-suitable for long-term energy storage, flywheels offer favorable advantages, that is, long-life spin, high energy densities and low maintenance costs, and fast charging.17 Thermal energy storage (TES) systems are effective systems to store heat in a reservoir for a period of time (defined or undefined) for later use, that is, space heating and cooling, electricity production, hot water. If the reservoir temperature is kept under the atmospheric temperature, the storage process is called cold thermal energy storage.18 Operating temperature range, capacity requirements, charging and discharging requirements are some of important parameters when choosing an appropriate TES system for a desired application. Since the major proportion of produced and consumed energy is heat around the world, TES systems carries a significant weight regarding the development of effective energy systems . Furthermore, energy losses from the systems commonly occur in the form of heat. Decreasing losses via further utilizing from waste energy is one of many way to mitigate environmental impacts, which can be accomplished by implementing TES systems in a cost effective manner. In the current study, an overview of Canada's energy storage related studies from 1971 to 2021 is presented. The scope of this study is to present the contributions of Canadian universities, research institutes and funders to energy storage research and development efforts over the last five decades. The keywords and methodology that are used for the literature search are depicted in Figure 3. The collected and compiled data for the corresponding fields are presented in figures, and results are discussed in the following sections. In this study, an online literature search is conducted on Canada's energy storage related studies over the last five decades. The current section presents collected and compiled data in charts. The findings of the conducted study are discussed in detail. The most productive institutes of Canada regarding conducting or sponsoring energy storage-related studies are presented. The documents associated with energy storage in all subject areas are presented in Figure 4. In this regard, the highest number of energy storage-related studies were conducted in the subject area of engineering in Canada from 1971 to 2021. The fields of energy and chemistry appear as the other two major subject areas in which high number of energy storage research was conducted. While compiling data, attention has been paid to any potential field conflicts concerning the multi attribution of interdisciplinary publications. Therefore, it should be noticed that chemistry may have an impact on the subject areas of biochemistry, genetics, and molecular biology. The same impact of engineering could be seen on the subject area of energy. The data collected and analysed for comparative evaluation reveals that the Canadian institutes have produced 37 386 energy storage-related academic research publications over the last 50-year period. In this regard, Figure 5A presents the breakdown of energy storage-related publications affiliated to Canada in the corresponding material types in accordance with the publication years. Figure 5A shows that studies in this field consistently increases every year. Consequently, the year 2020 appears as the most productive one in this regard as of April 2021. In the light of this trendline, predicting that the year 2021 will be more productive than 2020 would not be wrong. Figure 5B has been prepared as a heat map to show Canada's provinces where energy storage-related studies were conducted over the last 50 years. In this regard, Ontario appears as the most productive province of Canada in terms of scholarly publications. However, one has to keep in mind that Ontario has the highest number of contributing institutes/universities compared to the rest of the provinces in Canada. Figure 6 presents the breakdown of the number of energy storage-related books, book chapters, and editorials in accordance with publication years in Canada. The year 2018 was the most productive year of Canada by producing 200 documents in the corresponding classification. The other important point that should be pinned in the figure is the year 2005. Compared to the previous year, almost five times more energy storage-related books were published in 2005. Compared to 2019, the number of published books decreased almost by half in 2020. The impact of COVID-19 is recognized as one of numerous reasons behind this result. The number of energy storage-related dissertations completed in Canada over the last five decades is primarily searched through and collected from Library and Archives Canada. The search results are, in this regard, presented in Figure 7. It can be noted that the data presented in Figure 7 is based on the number of energy storage-related theses available in the library; and thus, the results are subject to change in accordance with instantaneous new data entry to the library. As of April 2021, there are 626 energy storage-related MSc and PhD theses/dissertations entered in the online system of Library and Archives Canada. The highest number of theses/dissertations was recorded in the year of 2013 with a value of 62. Based on data collected from the website of Canadian Intellectual Property Office, the number of energy storage-related patents of Canada is 11 719 for the last 50 years. The corresponding results are presented Figure 8. According to this, the year of 2018 appeared to be the Canada's most productive year in terms of patents registered under the title of energy storage. Canada is blessed with institutions that have been supporting energy storage-related research and developments by providing funds. Over the evaluated period of 50 years, the Natural Sciences and Engineering Research Council of Canada (NSERC) appears as the major funding agency for Canada's energy storage related research, development, partnership, strategic innovation and commercialization efforts and has supported more than 8500 projects in the field of energy storage. A total number of projects that have been funded by Canadian institutes have become 18021 from 1971 to 2021. It is most likely to observe a major increase in the number of projects by the impact of the recent hydrogen strategic plan of Canada. Being an excellent energy storage medium is one of many advantages of hydrogen. Therefore, there is a significant correlation in between hydrogen and energy storage research efforts. The subject matter report is already named as call-to-action for green hydrogen transition for the energy sector. In the report, the importance of dedicating more domestic resources to green hydrogen efforts to achieve the targets by 2050 is emphasized clearly (Figure 9). The development and implementation efforts of effective, affordable, and nature-friendly energy storage systems are recognized as a key requirement in achieving a green energy transition. In this regard, Canada intends to be the country leading and inspiring many others. Figure 10 shows the a number of Canadian institutes/universities that have produced more than 100 scholarly publications on energy storage under the subject area of energy. According to this, the total number of such scholarly publications has been 9125 over the past five decades. The results clearly show that there are two universities, such as University of Waterloo with 809 publications and Ontario Tech. University (formerly University of Ontario Institute of Technology) with 697 publications, leading in this particular area. University of Waterloo appears as the most productive Canadian university with a total number of 809 publications while Ontario Tech. University, which is one of the Canada's youngest universities, follows with a total number of 697 publications. The specific affiliations in the publications show that the researchers working in the productive environment of Clean Energy Research Laboratory (CERL) at Ontario Tech. have played a major role in this achievement. The data that support the findings of this study are available in Scopus, Library and Archives Canada and Canadian Intellectual Property Office with the reference number of [17], [18], and [19], respectively. These data were derived from the following resources available in the public domain: https://www.scopus.com/search/form.uri?display=basic&zone=header&origin, https://www.bac-lac.gc.ca/eng/services/theses/Pages/search.aspx, https://www.ic.gc.ca/opic-cipo/cpd/eng/search/basic.html?wt_src=cipo-patent-main.

Western China has good conditions for constructing large-scale photovoltaic (PV) power stations; however, such power plants with large fluctuations and strong randomness suffer from the long-distance power transmission problem, which needs to be solved. For large-scale PV power stations that do not have the conditions for simultaneous hydropower and PV power, this study examined long-distance delivery mode and energy storage optimization. The objective was to realize the long-distance transmission of electrical energy and maximize the economic value of the energy storage and PV power storage. For a large-scale PV power station, the energy storage optimization was modelled under a given long-distance delivery mode, and the economic evaluation system quantified using the net present value (NPV) of the battery was based on the energy dispatch optimization model. By contrast, a lithium battery performance model was developed. Therefore, further analysis of the economics of the energy storage and obtaining the best capacity of the energy storage battery and corresponding replacement cycle considered battery degradation. The case study of Qinghai Gonghe 100 MWp demonstration base PV power station showed that the optimal energy storage capacity was 5 MWh, and the optimal replacement period was 2 years. Therefore, the annual abandoned electricity was reduced by 3.051 × 10 4 MWh compared with no energy storage. The utilization rate of both the PV power station and quality of the delivered electricity were modelled to realize a long-distance transmission to the grid net. This will have an important guiding significance to develop and construct large-scale single PV power stations.

Investing in Photovoltaics: Timing, Plant Sizing and Smart Grids Flexibility

As a new type of flexible regulation resource, energy storage systems not only smooth out the fluctuation of new energy generation but also track the generation scheduling combined with new energy power to enhance the reliability of new energy system operations. In recent years, installing energy storage for new on-grid energy power stations has become a basic requirement in China, but there is still a lack of relevant assessment strategies and techno-economic evaluation of the size determination of energy storage systems from the perspective of new energy power stations. Therefore, this paper starts from summarizing the role and configuration method of energy storage in new energy power stations and then proposes multidimensional evaluation indicators, including the solar curtailment rate, forecasting accuracy, and economics, which are taken as the optimization targets for configuring energy storage systems in PV power stations. Lastly, taking the operational data of a 4000 MWPV plant in Belgium, for example, we develop six scenarios with different ratios of energy storage capacity and further explore the impact of energy storage size on the solar curtailment rate, PV curtailment power, and economics. The method proposed in this paper is effective for the performance evaluation of large PV power stations with annual operating data, realizes the automatic analysis on the optimal size determination of energy storage system for PV power stations, and verifies the rationality of the principle for configuring energy storage for PV power stations in some regions of China.

Photovoltaic Smart Grids in the Prosumers Investment Decisions: A Real Option Model

The objective of Poland’s energy policy is to guarantee energy security while enhancing economic competitiveness and energy efficiency, thus minimizing the power sector’s environmental impact and optimizing the use of energy resources in the country. Poland is not the only European country to rely on coal for power generation. Historical factors and large coal deposits act as natural barriers to increasing the share of renewable energy in the Polish power sector. Yet, today, environmental concerns and climate change are prompting many countries to move away from fossil fuels. Renewable energy sources, such as solar and wind energy, are an alternative to traditional energy generated from fossil fuels. However, investors developing solar and wind farms in Poland encounter numerous problems at each stage of the project. These difficulties are associated mainly with the location, technical requirements, infrastructure and formal and legal documents. This study aimed to identify the key factors that influence the development of photovoltaic power stations in Poland, with special emphasis on the choice of location and technical aspects of the investment process. The demand for clean energy and the renewable energy prospects for Poland are discussed based on the example of solar farms. Sixty-seven prospective farm locations were analyzed, and the results of the analysis were used to identify the main barriers and opportunities for renewable energy development in Poland. The option of connecting solar farms to the existing power grid was also examined. This study demonstrates that the development of solar farms in Poland is inhibited mainly by technical barriers, in particular the lack of options for connecting farms to the power grid, as well as the absence of support mechanisms and dedicated legislative solutions, rather than environmental obstacles.

This paper presents distributed and asynchronous active fault management (DA-AFM) to manage renewable energy upon faults. Addressed here are two challenges in fault management for photovoltaic (PV) farms and wind farms. The first one is the activation of crowbars in doubly-fed induction generator (DFIG) wind turbine systems during fault ride-though. The activation undesirably makes DFIG-based wind farms lose control and absorb reactive power. The second challenge is implementation of distributed fault management for distinct PV farms with different objectives and constraints. Coordination for large number of PV farms facilitates integration of themselves and other renewable energy. To prevent crowbars from being activated, DA-AFM controls nearby PV farms' interface converters to smooth voltage drops so that DFIGs experience voltages with a lower dropping speed. To enable distributed computation of DA-AFM's optimization formulation, a distributed and asynchronous surrogate Lagrangian relaxation (DA-SLR) method is devised to coordinate a cluster of PV farms. Simulation results have demonstrated DA-AFM 's effectiveness in preventing crowbars' activation in wind farms and in coordinating diverse PV farms.

This paper has tried to execute accurate demand forecasting by utilizing big data visualization and proposes a flexible and balanced electric power production big data virtualization based on a photovoltaic power plant. First of all, this paper has tried to align electricity demand and supply as much as possible using big data. Second, by using big data to predict the supply of new renewable energy, an attempt was made to incorporate new and renewable energy into the current power supply system and to recommend an efficient energy distribution method. The first presented problem that had to be solved was the improvement in the accuracy of the existing electricity demand for forecasting models. This was explained through the relationship between the power demand and the number of specific words in the paper that use crawling by utilizing big data. The next problem arose because the current electricity production and supply system stores the amount of new renewable energy by changing the form of energy that is produced through ESS or that is pumped through water power generation without taking the amount of new renewable energy that is generated from sources such as thermal power, nuclear power, and hydropower into consideration. This occurs due to the difficulty of predicting power production using new renewable energy and the absence of a prediction system, which is a problem due to the inefficiency of changing energy types. Therefore, using game theory, the theoretical foundation of a power demand forecasting model based on big data-based renewable energy production forecasting was prepared.

Electricity in rural Alaska is provided by more than 200 standalone microgrid systems powered predominantly by diesel generators. Incorporating renewable energy generation and storage to these systems can reduce their reliance on costly imported fuel and improve sustainability; however, uncertainty remains about optimal grid architectures to minimize cost, including how and when to incorporate long-duration energy storage. This study implements a novel, multi-pronged approach to assess the techno-economic feasibility of future energy pathways in the community of Kotzebue, which has already successfully deployed solar photovoltaics, wind turbines, and battery storage systems. Using real community load, resource, and generation data, we develop a series of comparison models using the HOMER Pro software tool to evaluate microgrid architectures to meet over 90% of the annual community electricity demand with renewable generation, considering both battery and hydrogen energy storage. We find that near-term planned capacity expansions in the community could enable over 50% renewable generation and reduce the total cost of energy. Additional build-outs to reach 75% renewable generation are shown to be competitive with current costs, but further capacity expansion is not currently economical. We additionally include a cost sensitivity analysis and a storage capacity sizing assessment that suggest hydrogen storage may be economically viable if battery costs increase, but large-scale seasonal storage via hydrogen is currently unlikely to be cost-effective nor practical for the region considered. While these findings are based on data and community priorities in Kotzebue, we expect this approach to be relevant to many communities in the Arctic and Sub-Arctic regions working to improve energy reliability, sustainability, and security.

With the development of photovoltaic power generation and energy storage technology, scale of photovoltaic power station and energy storage power station increasing. After a large area of power outages, photovoltaic power station based on the energy storage can be considered as a black-start power. In this paper, the sustained and effective output of photovoltaic power plant is analyzed and evaluated according to power forecasting data of photovoltaic power station as a criterion for photovoltaic power station used as black-start power. A system black-start scheme optimization model is proposed with target of maximizing the total power provided by photovoltaic power station and energy storage combined system in the start-up time of the conventional thermal power units to be started. Also, photovoltaic power station based on energy storage assisting power grid black start process is presented. Numerical example is used to demonstrate the feasibility of using photovoltaic power station and energy storage system as system auxiliary black-start power and validity of system black-start optimization model.

Improving the utilization factor of a PEM electrolyzer powered by a 15 MW PV park by combining wind power and battery storage – Feasibility study

A review of flexibility options for high RES penetration in power systems — Focusing the Greek case

The further development of sub-Saharan Africa is hinged on the possibility of the provision of uninterrupted power supply. Agriculture, education, and the economy in general are greatly affected by the power outage that has become difficult to comprehend. The energy system is inauspicious that only one in five inhabitant has access to electricity. Having electricity is necessary. Having access to clean energy is crucial. For example, a large number of people in Nigeria have electrical generators that release toxic fumes detrimental to the human health. Utilizing clean energy is considered the way of the future and to do that strategically locating the generating plants is important. Therefore, the introduction of solar parks (SPs) as well as solar and wind-assisted parks (SWAPs) on a wide scale is worthy of consideration since it yields an effective way of generating clean energy. This paper presents the application of a location model for SPs and SWAPs from a country’s perspective. In particular, we focus on Nigeria and Ghana. The power supply infrastructure of both countries, as well as the policies surrounding the provision of off-grid energy are analyzed in depth. We present the advantages and disadvantages of two different methods (the grid approach and the problem owner method). We choose a hybrid approach by combining the grid and the problem owner method (POM). We apply the grid method to regions with high population density and utilize the POM for less populated areas. Furthermore, we take into account power plants that are operational or will be so in the near future. In the above fashion we design two separate, capacitated networks of SPs and SWAPs, one for Ghana, one for Nigeria. Each of these is powerful enough to cover—in a sustainable way—the energy requirement of the majority of households by a facility within reasonable distance.

Renewable energy development in China: Resource assessment, technology status, and greenhouse gas mitigation potential