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Title: Integrating Renewable Generation into Grid Operations: Four International Experiences

International experiences with power sector restructuring and the resultant impacts on bulk power grid operations and planning may provide insight into policy questions for the evolving United States power grid as resource mixes are changing in response to fuel prices, an aging generation fleet and to meet climate goals. Australia, Germany, Japan and the UK were selected to represent a range in the level and attributes of electricity industry liberalization in order to draw comparisons across a variety of regions in the United States such as California, ERCOT, the Southwest Power Pool and the Southeast Reliability Region. The study draws conclusions through a literature review of the four case study countries with regards to the changing resource mix and the electricity industry sector structure and their impact on grid operations and planning. This paper derives lessons learned and synthesizes implications for the United States based on answers to the above questions and the challenges faced by the four selected countries. Each country was examined to determine the challenges to their bulk power sector based on their changing resource mix, market structure, policies driving the changing resource mix, and policies driving restructuring. Each countries’ approach to solving those changes was examined,more » as well as how each country’s market structure either exacerbated or mitigated the approaches to solving the challenges to their bulk power grid operations and planning. All countries’ policies encourage renewable energy generation. One significant finding included the low- to zero-marginal cost of intermittent renewables and its potential negative impact on long-term resource adequacy. No dominant solution has emerged although a capacity market was introduced in the UK and is being contemplated in Japan. Germany has proposed the Energy Market 2.0 to encourage flexible generation investment. The grid operator in Australia proposed several approaches to maintaining synchronous generation. Interconnections to other regions provides added opportunities for balancing that would not be available otherwise, and at this point, has allowed for integration of renewables.« less
 [1] ;  [1] ;  [2] ;  [2] ;  [3] ;  [3]
  1. Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
  2. Argonne National Lab. (ANL), Argonne, IL (United States)
  3. National Renewable Energy Lab. (NREL), Golden, CO (United States)
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Resource Type:
Technical Report
Research Org:
Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Sponsoring Org:
Country of Publication:
United States
24 POWER TRANSMISSION AND DISTRIBUTION bulk power grid; electricity grid; restructuring, liberalization; changing resource mix; lessons learned; Australia; Germany; Japan; United Kingdom