There is no doubt that power generation from variable renewable energy (VRE) will shape future electrical grids as power systems across the globe are faced with the challenge of integrating power generation from renewable or variable renewable energy sources, e.g. solar or wind power.
With increased demand for integration, several challenges will need to be surmounted including:
- Balancing power to compensate for inaccuracies in VRE power generation forecasts.
- Congestion management occasioned by a mismatch of the regional distribution of VRE power generation plants and supplied load
- Changes in electricity market prices that may threaten the economical operation of conventional (back up) power plants.
- Institutional limitations in terms of capacity to adapt and manage the grid.
- Incorporating flexibility requirements in existing and new contracts (Power Purchase Agreements), particularly in regulated markets, given obligations relating to take-or-pay, minimum-take/must-run requirements, defined operating schedules, etc.
Technical measures will need to be put in place to adapt to the changing generation mix that will address issues relating to boundary conditions of grid operation, flexible grid components, congestion management, etc., particularly when considering neighboring grid operators. Therefore, cooperation enhancers become critical.
Another critical issue that needs to be considered but is usually brushed under the rug is the institutional capacity of utilities to effectively manage the electricity grid of the future, particularly utilities in the Sub-Saharan African region. Digital technologies are set to transform grid operations, but the human factor cannot be ruled out. Digitalization however requires reliable power supply and vice versa.
From a contractual standpoint, particularly relating to existing contracts, contract reviews will need to be factored, especially given the long-term nature of the contracts.
As the world moves towards more renewable energy generation, the demand for dynamic electrical energy storage will grow. Distributed grids and the internet of electricity will serve as critical measures in managing the complexities that will be created from renewable energy.
The grid of the future goes beyond subsidies plugged into the system but requires concrete and actionable plans to be put in place and set in motion as power grids become more distributed, more intelligent, more reliable, more secure (cyber and physical), more sustainable and more resilient.
Join ReEnergy Africa in Kigali, Rwanda from the 26th-27th October, 2022 where critical issues will be addressed and discussed to effectively power businesses and economies in Africa. Visit www.reenergyafrica.com for more details.
Register here: https://lnkd.in/dQCenEVc
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