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Content archived on 2024-05-07

The Value of Renewable electricity: part 2

Objective



RE-VALUE 2 - PROJECT SUMMARY RE-VALUE 1 has shown that renewable electricity generally does add value to an electricity system and that the value is made up of a number of site specific benefits and avoided costs, including the universally accepted costs of fuel saved. It has illuminated the need for studies which examine all the constituents of value from a site-specific power plant. Moreover, it has become clear that a key problem for renewable electricity Generators is that there is often no formal mechanism within the electricity system to pay the renewable energy Generator for the added value. This skews the incentives within the electricity system against the use of embedded renewable generation. It is therefore important that the economics of embedded generation are incorporated in to the support, regulatory and tariff mechanisms of electricity systems.
The goal of RE-VALUE 2 is therefore to take the issues of RE-VALUE 1 a stage further:
1. RE-VALUE 2 will provide over 20 detailed studies of the value that wind, hydro, biomass, landfill gas and photovoltaic energy projects brings to the electricity system in seven countries, based on the methodology used by Pacific Gas and Electric (PG&E) in a study of a photovoltaic project, modified to suit European circumstances. It will:
1.1 evaluate the costs and benefits of over 20 projects to the electricity system;
1.2 evaluate the effect on the electricity system in terms of reliability and reinforcement;
1.3 consider how these costs and benefits change with very large penetrations of renewable electricity generation, for example greater than 10 per cent of supply.
2. RE-VALUE 2 will provide the specification for easy-to-use off-the-shelf methods and models for calculating the value of renewable electricity.
3. RE-VALUE 2 will analyse the use of Information technology (IT) in electricity distribution systems and related data bases and establish how they can be harnessed, modified or developed to assist in the calculation of value.
4. RE-VALUE 2 will examine the extent to which the benefits of specific projects accrue to the renewable Generator in four countries.
5. RE-VALUE 2 will make recommendations for changes to the support, regulatory and tariff mechanisms for each of the four countries and for the European COmmission countries in general which would allow the benefits of the specific projects investigated to be redistributed appropriately between the electricity system actors.
6. RE-VALUE 2 will assess the implications of Value for renewable energy policy, for example for support mechanisms, for tariffs and for resource studies.
7. RE-VALUE 2 will add its results to, and compare and assess, other European Commission studies which have dealt with parallel but different questions concerning the value of renewable electricity, for example ExternE.

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Call for proposal

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Coordinator

UNIVERSITY OF SUSSEX
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Address
Mantell Building
BN1 9RF Falmer - Brighton
United Kingdom

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Participants (10)