Status of Power System Transformation Status of Power System Transformation 2017

Status of Power System Transformation 2017
Table of contents
Acknowledgements
Executive summary
Chapter 1. Introduction
	Objectives and scope
	Structure of the report
	Power system transformation assessment framework and case studies
	References
Chapter 2. Transformation pathways and recent developments in the power sector
	Current structures and pathways for power sector transformation
		Current structures and pathways
			Expanding energy access
			Transformation pathways for the power sector
	Recent trends and developments in the power sector
		Building on lessons learned
			Increasing knowledge of and experience with VRE integration
			Refined evaluation and measurement of energy access
		Evolving roles, actors and interests
			Increasing participation of the demand side through market, policy and regulatory reforms
			Greater private-sector participation in dynamic electricity markets
			Innovative support for low-income customers through rooftop solar programmes
		Emerging investment frameworks
			Increasingly system-friendly procurement of VRE resources
			Evolving regulatory frameworks for encouraging investment in DER
			Reduced investment potential in wholesale power markets with static demand
		Responses to changing market conditions and technology drivers
			Increasing flexibility of thermal generation fleets
			Increasing cross-border co-ordination and power sector integration
			Relying on stand-alone, small-scale power systems for providing rural energy services
		Evolving public policy and regulatory strategies
			More ambitious targets for renewable energy deployment
			Increasing competitive procurement of VRE
			Value-based remuneration for DER customers
			Greater investment and incentives for vehicle electrification
	Adoption of new end-use technologies
		EVs
		Smart and efficient buildings
		Heat pumps
	References
Chapter 3. Transforming power system planning and operation to support VRE integration
	Challenges depend on different phases of VRE deployment
	Technological options and operational practices to address operational challenges of VRE
		Technical measures
			Real-time monitoring and control of VRE by the system operator
			Tools and techniques for enhancing transmission line capacity
			Power plant flexibility
			Use of special protection schemes
			Advanced VRE technologies and design
			Establish a limit on system non-synchronous penetration
			Inertia-based fast frequency response
			Smart inverter
			Advanced pumped hydropower operation
			Grid-level storage
		Economic measures
			Integrating forecasting into power system operations
			Incorporating VRE in the dispatch
			Sophisticated sizing of operating reserves
			Faster scheduling and dispatch
			Co-ordinating dispatch across balancing areas and interconnector management
	The need for operational requirements relevant to VRE plants
		The role of grid codes and VRE plants
		Technical requirements are prioritised according to the level of VRE deployment
	Integrated planning with higher deployment of VRE
		Integrated planning incorporating demand resources
		Integrated generation and network planning
		Integrated planning between the power sector and other sectors
		Inter-regional planning
	Planning and operation of low- and medium-voltage grids in light of increased DER
		New planning requirements
		Improved screening/study techniques
		Advanced data-driven local system management
	References
Chapter 4. Policy, regulatory and market frameworks to support VRE integration
	Policy, market and regulatory frameworks for efficient operation of the power system
		Least-cost dispatch - the role of short-term markets (minutes to hours)
		Moving operational decisions and trade closer to real time
		Improving pricing during scarcity/capacity shortage
		Designing capacity mechanisms
		Reforming mechanisms for the procurement of system services
		Exchanging electricity over larger geographical areas
	Ensuring sufficient investment in clean power generation
	Pricing of negative externalities
	Unlocking sufficient levels of flexibility
		Flexible generation
		Demand-side integration
		Storage
		Grid investment
	References
Chapter 5. Topical focus: Evolution of local grids
	A paradigm shift – local grids in future energy systems
		Current drivers for change
			Uptake of DER fosters decentralisation of supply
			Smartening of local grids by utilities
			Electrification of heating and transport
		Long-term vision for local grids
	How to foster the opportunities of digitalization
	Secure and effective system operations under a high degree of decentralisation
		Addressing DER – a focus on solar PV
		Smart grid options
		Advanced modelling capabilities
	Ensuring economic efficiency and social fairness through compensation mechanism and retail rate design
		The need for a new retail rate design
		Degrees of granularity for retail tariffs
		Compensating DER
		Implications for policy design
	Revisiting roles and responsibilities
		Elements of structural reform
	References
Chapter 6. Power system transformation assessment framework and case studies
	Framework for assessing power system transformation
		Markets and operations
		Planning and infrastructure development
		Uptake of innovative technology
		Efficiency and sector coupling
	Indonesia
		General overview of Indonesia’s power sector
		Market and operations
			Wholesale level
			Retail level
		Planning and infrastructure development
			Integrated planning frameworks
			Electricity grid planning
		Uptake of innovative technologies
			Smart technologies
			Flexible resources
			Resource-efficient technologies
		Efficiency and sector coupling
		Summary and main observations
	South Africa
		General overview of South Africa’s power sector
		Market and operations
			Wholesale level
			Retail level
		Planning and infrastructure development
			Integrated planning frameworks
			Electric grid planning
		Uptake of innovative technologies
			Smart technologies
			Flexible resources
			Resource-efficient technologies
		Efficiency and sector coupling
			Electrification of the transport sector
			Electrification of heating and cooling
			Energy efficiency
		Summary and main observations
	Mexico
		General overview of the Mexican power sector
		Markets and operations
			Wholesale level
				Bulk system operation
				Electricity market framework
			Retail level
		Planning and infrastructure development
			Integrated planning frameworks
			Grid expansion
		Uptake of innovative technologies
			Smart technologies
			Flexible resources
			Resource-efficient technologies
		Efficiency and sector coupling
		Summary and main observations
	Australia
		General overview of Australia’s power sector
		Market and operations
			Wholesale level
				Bulk power system operations
				Electricity market framework
			Retail level
				Local grid operations
				Retail market frameworks
		Planning and infrastructure development
			Integrated planning frameworks
			Electricity grid planning
		Uptake of innovative technologies
			Smart technologies
			Flexible resources
			Resource-efficient technologies
		Efficiency and sector coupling
			Electrification of the transport sector
			Electrification of heating and cooling
			Energy efficiency
		Summary and main observations
	References
Annex A. Details of technical measures to address power system challenges
	Introduction
	Technical measures during the later phases of VRE deployment
		Tools and techniques for enhancing transmission line capacity
			Dynamic line rating
			Flexible alternating current transmission system devices
			Phase shifter
		Advanced VRE technologies and design
			Higher direct current to alternating current ratio for solar PV plants
			Changing orientations and tilt angle of solar PV panels
			Advanced wind turbine technology
		Establish a limit on system non-synchronous penetration
		Inertia-based fast frequency response
		Smart inverter
		Advanced pumped hydropower operation
		Grid-level storage
	References
Abbreviations and acronyms
Units of measure