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Smart Power Generation
The Future of Electricity Production

by JACOB KLIMSTRA and MARKUS HOTAKAINEN

This book explores the challenges and opportunities facing us, and ultimately leads to the possible solutions. Smart grids may help in both optimizing electricity use and integrating renewable energy sources, yet Smart Power Generation – with its high flexibility and fuel efficiency as well as low emissions – is going to be essential for balancing electricity supply and demand. Whatever happens, one thing remains clear: Business as usual is not an option.

Further Reading

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Flexible energy for efficient and cost effective integration of renewables in power systems

A Wärtsilä White Paper supported by modelling conducted by Redpoint Energy, a business of Baringa Partners. In this paper, we set out analysis to demonstrate that using new forms of flexible generation (Smart Power Generation) can achieve significant savings over using traditional forms of flexibility from generation, particularly as the penetration of renewable generation technologies increases in the future. Electricity market arrangements need to value this flexible energy explicitly in order for new technologies to be deployed. Regulators and/or market operators should review their markets to ensure that the signals for flexible energy are fit for purpose given the significant changes in the generation mix on the horizon. The key arrangements to focus on are market balancing and ancillary service arrangements, and the incentives that these place on market participants.

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Frequency stability contribution of combustion engines

DNV KEMA, a leading energy consultancy, studied the effect of introducing combustion engines for frequency stability using a model of an isolated Dutch power system. A number of case studies with varying penetrations of renewable generation and combustion engines were simulated, to determine the effect of renewable energy sources on frequency stability and the positive contribution of fast responding generation like combustion engines. Introducing combustion engines was found to lead to improvements in frequency stability. In fact, it was noted that it is possible to replace all existing up-regulating secondary control with non-spinning combustion engines, and that in doing so, the system behavior on a trip event did change, but the resulting response matched the ENTSO-E requirements.

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How to Manage Future Grid Dynamics: Quantifying Smart Power Generation Benefits – EXECUTIVE SUMMARY

Executive summary of Smart Power Generation study by DNV KEMA. See full white paper below.

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How to Manage Future Grid Dynamics: Quantifying Smart Power Generation Benefits

DNV KEMA, a leading energy consultancy, evaluated California Independent System Operator (CAISO) operations and markets for the year 2020 using the PLEXOS™ dispatch simulation platform. This study explores the impact of using Smart Power Generation (SPG) to improve performance of future resource portfolios. The results show that 5.5 GW of SPG capacity (approximately 7% of the capacity for CAISO in 2020) can reduce annual overall variable system costs by 3.9 to 14% (290 million to 1.1 billion dollars), while reducing Carbon Dioxide (CO2) emissions and water consumption.

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A case of sunstroke in Germany

Germany is on track to surpass its 2020 target of 51.8GW installed PV capacity, and will thus become the first market to be substantially affected by the intermittency of solar electricity. Bloomberg New Energy Finance analyses the impact on the German power sector.

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Beyond Capacity Markets - Delivering Capability Resources to Europe’s Decarbonised Power System

A paper about the new reliability challenges associated with meeting Europe’s decarbonisation targets. Based on the requirements and related considerations, S.A. Skillings from Trilemma UK and M. Gottstein from Regulatory Assistance Project, develop a set of market design principles that can be used to assess the suitability of proposals intended to deliver system reliability.

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Climate Change – A Presentation by Prof. Petteri Taalas

A visual presentation on the correlation between climate change and CO2 emissions by Professor Petteri Taalas, Director General of the Finnish Meteorological Institute.

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Balancing Resource Options: An Alternative Capacity Mechanism

A Pöyry report on how decarbonization targets present significant challenges for electricity markets in terms of delivering low-carbon generation, maintaining a secure supply, and ensuring economic efficiency.

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Analyzing Technical Constraints on Renewable Generation to 2050

A Pöyry report for the UK Committee on Climate Change detailing the technical constraints of renewable power generation, and the feasibility of integrating high levels of renewables by 2050.

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Demand Side Response: Conflict Between Supply and Network Driven Optimization

A Pöyry report for the UK Department of Energy and Climate Change highlighting the conflicting challenges of optimizing networks while continuing to provide a secure supply.

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Demand Side Response: Follow On

A Pöyry presentation for the UK Department of Energy and Climate Change following up on the report into supply and network driven optimization.

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The Challenges of Intermittency in North West European Power Markets

A Pöyry study into the impact of wind and solar deployment on North West European power markets, and the intermittency issues they create.

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Options for Low-Carbon Power Sector Flexibility to 2050

A Pöyry report for the UK Committee on Climate Change detailing the various options for achieving the 2050 target of reducing greenhouse gas emissions by 80% of 1990 levels.

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