The Oxford Martin Programme on Integrating Renewable Energy Bringing together an interdisciplinary team of eight experts on energy issues from five Oxford University departments, the programme aims to deliver a framework for understanding technical, market and policy requirements for integrating renewables across a wide range of scales, resource types and contexts. Electricity supply and demand must remain balanced across the whole grid at all times, which makes accommodating increasing amounts of variable wind and solar power challenging. Current approaches to managing this are far from optimal. At times when supply exceeds demand, wind and solar power are being “curtailed”, whilst other generation is still needed when demand exceeds solar and wind supply, so that much capacity of both types is used inefficiently. Zero marginal cost wind and solar power also tend to depress prices in wholesale electricity markets, which undermines the business model of conventional utilities in countries with a lot of renewables, leading to concerns about the adequacy of investment and energy security. Dealing more effectively with the intermittency of renewable sources will require some combination of energy storage, more grid inter-connection and demand response, as well as flexible generation. There is no agreement on what mixture of these measures will minimize the over-all ‘system cost’. The answer is likely to differ from place to place and with the time of year, and will change as the contribution of renewables grows. So far relatively little attention has been paid to the need to re-think regulatory, market and institutional arrangements in order to provide the incentives for development and deployment of acceptable combinations of these changes. renewableenergy.ox.ac.uk The Oxford Martin Programme on Integrating Renewable Energy brings together a team of experts on energy issues from five Oxford University departments to conduct interdisciplinary research on the technical, market, social, and policy challenges for integrating renewables across a wide range of scales, resource types and contexts. Energy can be stored in a variety of ways, including electromagnetic, mechanical, electrochemical, thermal and chemical mechanisms. Today pumped hydro dominates in power systems, but increasing the role of intermittent renewable generation brings challenges that require much greater levels of storage and different combinations. We are exploring the potential opportunities and applications on timescales from sub-second to seasonal, based on the characteristics of different storage technologies. Although technological progress continues to drive down costs and increase performance, this is not occurring sufficiently fast in all fields. We are therefore investigating drivers of cost reduction in low carbon technologies, instruments that can accelerate technology development, and the impacts of innovation policy on enabling low carbon energy systems with sufficient capacity and flexibility. Increasingly renewable and distributed electricity systems are also challenging existing market structures, and therefore our research is considering the market arrangements needed to incentivise effective investment and operation of low-carbon generation. This will focus on power market arrangements, nodal and time based pricing, and industrial organization and competition. It will includes how consumers and the demand-side may play a more active role in supporting system needs, identifying and modelling options for technology, operations and service expectation changes. Larger roles for decentralised actors, on the one hand, and international interconnection, on the other, are already challenging the idea of nationally determined governance. Storage fits poorly into regulatory structures designed around clearly separated domains of monopoly networks and competitive generation and supply. And greater roles for demand side actors are not consistent with the passive consumer assumption implicit in traditional power sector governance. Our research will address how these profound technical and market changes will affect and be affected by the framework of policy, governance and institutions. Through this work we are developing the conceptual tools needed to understand systems with high levels of renewable electricity in different scenarios. We are applying these to aligned case study projects, including on: supply side balancing of solar and hydro in Kenya; the development of a peer-to-peer trading platform; electricity retail market reform in the UK; and distributed storage heating in the EU. The programme is supported by the Oxford Martin School, and receives input from key partners in industry and government which is helping to ensure that it delivers early results that are relevant to industry, commercial interests and the formulation of policy. Energy oxford For more information contact [email protected] [email protected] or visit renewableenergy.ox.ac.uk
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