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REGULATORY SCHEME FOR INTEGRATING WIND INTO ELECTRICITY MARKETS: THE ITALIAN EXPERIENCE

REGULATORY SCHEME FOR INTEGRATING WIND INTO ELECTRICITY MARKETS: THE ITALIAN EXPERIENCE Marco Pezzaglia Italian Authority for electricity and gas Milan May 8th, 2007. Agenda. Status of wind generation Status of trasmission system Actors and role Security problems Future actions.

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REGULATORY SCHEME FOR INTEGRATING WIND INTO ELECTRICITY MARKETS: THE ITALIAN EXPERIENCE

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  1. REGULATORY SCHEME FOR INTEGRATING WIND INTO ELECTRICITY MARKETS: THE ITALIAN EXPERIENCE Marco Pezzaglia Italian Authority for electricity and gas Milan May 8th, 2007

  2. Agenda • Status of wind generation • Status of trasmission system • Actors and role • Security problems • Future actions

  3. Wind generation in Italy (December 31, 2006) 44.3 MW 573.93 MW 694.77 MW 346.66 MW (*) Source: ANEV (+) Elaboration AEEG 450.62 MW

  4. Wind generation in Italy (December 31, 2006) Share of rated power (*) (*) Source: ANEV

  5. Wind generation in Italy (December 31, 2006) Generators per region (*) (*) Source: ANEV

  6. Wind generation in Italy (December 31, 2006) Generators per wind generator producers(*) (*) Source: ANEV

  7. Status of transmission system • Transmission system is affected by critical sections (congestions) Source: TERNA

  8. Status of transmission system • Transmission system is affected by critical sections (congestions) Source: TERNA

  9. Status of transmission system • Critical sections must be put in relation to wind generation evolution Wind power generation incerease 2008 • Foreseen wind power generation evolution intercats with present potential transmission congestions Source: TERNA

  10. Status of transmission system • Wind power generation evolution interacts with traditional power evolution due to teh fact that in Southern regions the value of electric energy is higher than in the Northern zones Prices euro/MWh 2004 Prices euro/MWh 2005 Generation expected 2006-2010 Source: TERNA

  11. Actors and role • Parliament and government • Energy policy • For wind generation incentive program based on green certificates • AEGG • Access to networks and markets • (Shallow) Connection fee discounted for renewables • TERNA (Italian TSO) • Security • Distributors (DSOs)

  12. Security problems • Terna – security requirements • Low Voltage Ride Trough (LVRT) Capability • Power factor control • adjustable power factor set point from 0.95 leading to 0.95 lagging at generator terminals • Active power control • Power output variation with frequency (from 47.5 Hz to 50.3 Hz constant;, from 50.3 Hz to 51.5 Hz decreasing proportionally to droop, with [droop adjustable setting variation range from 2 to 5]) • Power output gradient (during start-up conditions power output variation must be lower than 20% of rating power per minute) • Parallel must be prevented whenever frequency grid exceeds 50.3 Hz • Power output reduction • on TSO request the power output shall be reduced up to requested quantity via local operator or automatically on the basis of a signal from TSO)

  13. Future actions • TERNA security requirements are not yet binding • To make them binding is necessary that TERNA modifies the Grid Code that msut be approved by AEEG before entering into force • AEEG required TERNA to demonstrate the need of security requirements and to undertake a study on the technical-economical impact of the absence/presence os the abovementioned requirements with reference to • Existing situation (and existing wind plants) • Future scenarios • AEEG must then elaborate an order to set the possible remuneration of resorces furnished to the system for security reasons

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