ew energy power consumption is difficult? See how to do it abroad!

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2018/04/09 17:18
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Electricity price subsidies are of particular concern to everyone. Subsidy is by far the most successful mechanism for the development of new energy. Denmark, Spain, Germany and many other countries h

In recent years, great progress has been made in the development of new energy in China. However, the frequent occurrence of wind abandonment, abandonment of light, abandoned water, and abandonment of nuclear energy seriously hampered the further development of new energy generation. Solving the problem of new energy generation and consumption is a major concern for the industry. In this regard, the development of new energy markets in Europe and the United States is mature, which can provide a reference for China's new energy consumption.

At the “International Solar Energy Forum”, the sub-forum of the 9th China International New Energy Exposition and the Summit on Energy Storage and Complementary Energy, on June 7th, the director of the Institute of Corporate Strategy at the State Grid Energy Research Institute released the theme: The speech “International Experience in Promoting the Consumption of New Energy and Its Enlightenment” was analyzed from two aspects: the promotion of market experience of new energy consumption abroad and the inspiration for the promotion of new energy consumption in China.

Overseas market experience in promoting new energy consumption

Whether it is photovoltaic or wind power, the price mechanism is crucial. Ma Li believes that the international price mechanism is mainly divided into three categories: First, the bidding mechanism; Second, the on-grid tariff subsidies; Third, the quota system and power purchase agreement (PPA mode).

1 bidding mechanism

The bidding mechanism is the goal set by the government to build new energy installed capacity and public budget, and invites developers of future projects to bid. China also adopts this mechanism. Its advantage is that through bidding competition, the price of new energy power generation and government subsidies are greatly reduced. At the same time, for investors, the investment risk is reduced. After completing the investment, investors can increase new energy generation technology as much as possible, which is conducive to technological progress.

2 on-grid price subsidy mechanism

Electricity price subsidies are of particular concern to everyone. Subsidy is by far the most successful mechanism for the development of new energy. Denmark, Spain, Germany and many other countries have adopted this mechanism, which has achieved good results and has led the development of new energy sources in the world.

There are two mechanisms for on-grid tariff subsidies. One is the fixed on-grid electricity price subsidy, which directly clarifies the price of various types of renewable energy power generation. The grid companies purchase renewable energy power according to the government's pricing. The additional purchase cost of electricity purchased by the power grid is subsidized by the state or included in the user's sales price. The other is the premium for on-grid tariffs, which is directly involved in the electricity market. The premium mechanism is based on the actual electricity price in the conventional electricity market plus a certain amount of incentive price as the actual electricity price obtained from renewable energy. This mechanism is used more internationally and may become a trend for future development.

3 Quota System and Power Purchase Agreement (PPA Mode)

The electricity provided by new energy suppliers will have a quota certificate, which stipulates that certain parties, such as electricity suppliers, must have a certain percentage of renewable energy power and establish a corresponding trading mechanism so that quotas and certificates can be used as energy sources. Businesses buy and sell. The quota system clearly defined the goals for each stage of development and progressed step by step. The quantified long-term development goal is easy to achieve, and it also increases investor confidence and helps new energy consumption. At the same time, the implementation of the green certificate trading system enables electric power suppliers to freely choose the way to accomplish the quota target, instead of having to own new energy power generation equipment. It can use the market to promote the development of new energy to a larger scale, adjust it through market measures, and reduce government investment. The stability of the policy is well protected. There is a more reasonable supporting punishment mechanism and it is conducive to the completion of quota targets. Many countries abroad have adopted this model. For example, the United Kingdom is also studying the quota system.

The Power Purchase Agreement (PPA), also known as power users direct trading mechanism. With the rapid development of new energy sources, a large number of wind power and solar energy projects in Europe and America have entered the electricity market in local and neighboring countries through the Power Purchase Agreement (PPA). The PPA is actually a long-term power trading contract signed by the buyer and the seller, which stipulates the price for buying and selling electricity. For new energy generation, this model can play a role in stabilizing the market, attracting investment, and reducing capital costs. This kind of mechanism in the future may have a certain market and adoption in our country.

There are two ways to purchase, one is physical and the other is financial. The physical procurement agreement needs to be developed and provided within the specified time according to the negotiated price and the amount negotiated. For foreign countries, distributed photovoltaic power generation adopts this mode more. The second is the financial approach. Gold's transactions use more. Buyers and sellers do not need physical delivery. Both parties agree on a fixed price. In the wholesale market and spot market, payment can be made in the form of a difference contract. This approach plays a role in suppressing market price risks. For new energy generators, it is a relatively common way to obtain more fixed income. From the perspective of procurement, with the decrease in installation costs and increase in power factor, the purchasing prices of solar and wind power have shown a downward trend in recent years. In the United States, for example, wind power in the United States fell from 7 cents in 2009 to 2 cents, and the long-term price of solar energy fell from 10 cents in 2011 to 5 cents.

For the entire system, the scheduling mechanism to promote the consumption of new energy is more critical. The power system needs to have an overall power balance, and the scheduling mechanism is critical.

The first and most important is the prediction of new energy power generation. In fact, it is very important to participate in the market, or in the future market environment, the accuracy of the forecast. Abroad, there are actually two modes of prediction mode. One is a centralized prediction mode and the other is a decentralized prediction mode. The centralized forecasting model has a centralized forecasting system for unified forecasting. This model is commonly used in Denmark, Germany, and Texas. With the decentralized forecasting model, new energy sites and stations are responsible for wind power forecasting themselves, and some third-party companies can act as agents for site forecasting. Germany has adopted this model after 2012, Spain and the United Kingdom. In the future, with the new energy being able to compete with conventional energy sources on the same platform, the accuracy of the forecast is critical.

The second is the penalty for battery deviation. This is also very important for new energy companies. New energy belongs to intermittent power supply, and there will always be deviations. The handling of such deviations will affect the interests of the new energy economy. In the Texas power market, deviations will be penalized when the value of the base point commanded by ancillary services is considered to be 5% or 5MW. In the Nordic power market, wind power new energy companies participating in market bidding need to forecast the imbalances caused by their respective output errors. If the unbalanced amount is opposite to the system imbalance, the power companies will be exempted from punishment. This is not the same in each market, especially for new energy sources, these processing mechanisms are more important.

The third is peaking and ancillary services. At present, large-scale grid-connected consumption must rely on good peaking and auxiliary service capabilities of the power system. From the perspective of ancillary services, there are many different approaches in foreign countries. China is also piloting the peak load adjustment assistance market in the Northeast region. This has an impact on the economic interests of new energy companies, so this mechanism is particularly important.

The fourth is the cross-regional multinational consumption mechanism. Internationally, in order to realize the optimal allocation of new energy in a wide range, and in order to achieve energy and low-carbon transition, countries are also advocating cross-regional trans-regional trade in electricity to strengthen the construction of backbone networks and cross-regional transnational networking. All Nordic power markets have energy transactions. The power structures of different countries have certain complementarities. Cross-border transactions can be realized through networking to realize the absorption of a large range of new energy sources. This is similar to the situation in China. The networking of neighboring countries such as Spain, France, and Portugal is also aimed at sending out and absorbing new energy.

The fifth is distributed new energy incentives, especially photovoltaics. Under the new incentive mechanism, more and more distributed energy sources are encouraged to participate in the market, including participation in the capacity market, electric energy market, and auxiliary service market. There are several advantages for distributed new energy to participate in the market: First, it can incentivize the advantages of distributed power to exert flexibility through a reasonable level of return, meet the need for balancing real-time systems to absorb new energy, and second, establish a long-term market effect. Mechanisms that allow distributed energy resources to participate in market transactions and participate in the electric energy market and ancillary services market, making distributed generation and energy storage a schedulable load used by the dispatch department for standby and balance resources; third, distributed new energy Participating in the market can provide new profit growth points for distributed generation, which will help expand the scale of distributed generation and expand the scale of new energy consumption.

In addition, with the development of "Internet +" network IT technology, there are some new forms of new distributed energy, such as VPP and virtual power plants. In order to realize coordinated control and energy management of distributed power sources, a company can implement unified integration of many distributed photovoltaics. This integrator participates in the entire power system and is very helpful for power balance and peak load shedding. After the quantity is large, it has a very large effect on the system, and when it participates in the market, it will gain considerable benefits for the auxiliary service market and the balanced market. Many countries have already emerged this type of business. Many companies have already earned high profits. With the development of distributed photovoltaics, with the liberalization of the power transmission side of our country, there will be more forms of production. On the technical level, the virtual power plant does not change the way each peak energy is connected to the grid. Instead, it uses advanced control, metering, and communications technologies to achieve coordinated and optimized operation of multiple distributed energy sources so that they can participate in the electricity market and assist Service market operations, real-time energy trading, while optimizing the use of resources, greatly improving the reliability of power supply. From the point of view of development trends, small-scale demonstration projects that can be learnt from Europe and the United States, such as Germany and the EU's virtual fuel cell and power plant projects, have a very broad VPP concept. For distributed photovoltaics, the future is a trend.

Enlightenment to China's Promotion of New Energy Consumption

First, there is a need for a sound new energy price subsidy mechanism. There needs to be a reasonable market and price subsidy, co-existence of a coordinated development mechanism.

Second, speed up the construction of the national electricity market and gradually explore new energy sources to participate in market transactions. In the future, with the reduction of new energy costs, new energy sources can be promoted to participate in the market under the influence of the electricity market and effectively promote the consumption of new energy.

The third is to improve the forecasting and deviation management mechanism for new energy generation.

Fourth, improve peak load adjustment and auxiliary service mechanisms. In the future, the costs of peak shaving and auxiliary services will surely be apportioned and gradually improved to promote new energy consumption.

Fifth, new energy needs to be absorbed within a wider range. How to promote? Is a big problem. In the future, it will try to take the market to eliminate it.

The sixth is to encourage distributed new energy generation to be market-oriented. One way can be explored, as a flexible load, integrating multiple distributed PVs, and doing some new business to explore.