Challenges for the Implementation of Renewable Energies: Experiences from China and Germany

Asian Development Bank (ADB) 7th Asia Clean Energy Forum 2012 Manila, June 6th 2012
Dr. Sven-Uwe Mller Programme Director Sino-German Renewable Energy Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH

To successfully establish renewable energy infrastructures you have to address four issues

Administrative / Regulatory Technical

System Integration

Skills & Qualification

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

Creating an efficient mechanism is the main administrative challenge

Administrative / Regulatory Technical Administrative / Regulatory
Goal:
Efficient mechanism to promote generation from renewable energy sources
It is about KWh generated and not KW installed

System Integration

Skills & Qualification

Easy to implement and monitor Give the right incentives for a sustainable development of the sector (no boom & bust cycle)

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

Policy priorities are changing over time

deployment Inception Clear renewable energy strategy and targets Early takeoff Predictable incentives Advanced takeoff Predictable and rapidly adaptable incentives Consolidation Focus on transformation of the energy system Create a market to expose RE to competition

Attractive support
Set up regulatory support

Focus on noneconomic barriers, Manage total e.g. transaction support costs costs, permits, Manage total support costs Focus on system integration

Secure public acceptance

time
Based on IEA Study: Deploying Renewable Energy

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

Decrease the Feed In Tariff / Output Incentive over time

Incentive Based Regulation

: Principle: Decoupling of revenue from costs

Incentive: Grid operators may generate higher profits if they release efficiency reserves and reduce costs. Efficiency gains are initially delayed, but passed on to the customer permanently.
For extensions and restructuring measures it is possible to file for investment budgets

Source: Bundesnetzagentur, German Federal Network Agency Sino-German Renewable Energy Programme Dr. Sven-Uwe Mller 5

Main technical issues are availability and cost of energy

Administrative

Technical
Goal:

Technical
Have the appropriate technology, which has the best levelized cost of energy in place Ensure Availability

System Integration

Skills & Qualification

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

It is not about transfer of technology but about transfer of know how to do

Working areas of the Sino-German wind energy programme
Operation & Maint. Wind Power Services
Establish Wind Power Technician Training School at Suzhou Wind Power Grid Integration Plan Wind Resource Assessment Power Quality of Turbines & Windfarms Power Performance Assessment Noise Measurement

Applied Research
Wind Farm Micrositing & Resource calculations Grid planning/simulation software (e.g. Digsilent Powerfactory) Wind-power prediction for dispatch

Improve Operation of Windfarms

Introduce advanced wind power support technologies

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

Germany used a public database to increase the knowledge about failures in wind turbines

Broad data base improves conditions for wind farm operators

www.windmonitor.iwes.fraunhofer.de
Sino-German Renewable Energy Programme

Data source: ISET, IWET 10/2010

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Develop a system to maximize feed in and grid stability

Administrative

System Integration
Goal:
Ensure grid stability

Technical

System Integration

Maximising feed-in of partly volatile renewable energy sources Ensuring quick grid access

Skills & Qualification

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

In Germany grid expansion remains a major challenge

Situation in Germany Successful integration of renewable energy requires new transmission lines Federal Network Agency (BNetzA) manages the process 480 applications for investment budgets have been made, with a total volume of EUR 15 billion A big part has already been approved 24 priority projects have been identified and attributes priority in a special law (EnLAG) but: delays expected Most projects got green-light by BNetzA Delays mostly due to planning law
Source : Bundesnetzagentur , German Federal Network Agency

On schedule

Delayed

Sino-German Renewable Energy Programme

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China is working intensively on how to better integrate wind power to the grid and addresses the challenges

Power system balancing challenges increase

Thermal MW 58272 167115 43382 Hydro MW 6614.7 3851 17377 Wind MW 6495 6798 2145 Thermal/ total % 81.6 94.0 69.0 Hydro/ total % 9.3 2.2 27.6 Wind/ total % 9.1 3.8 3.4

Regional TSO Northeast North China Northwest

Status by the end of June 2010

Fossil power dominates generation in three-North regions Almost no oil or gas based generation This leads to a insufficient power balancing capability
Sino-German Renewable Energy Programme 11

China is updating its development plan for a provincial, regional and national power system including wind power

Sino-German Renewable Energy Programme

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Qualification matters, especially for renewable energies

Administrative

Skills & Qualification

Goal:
Have enough qualified personnel to support the growth of RE installations

Technical

System Integration

Skills & Qualification

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

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The wind power boom in China is a challenge for skills and qualifications
Demand projection for O&M staff for China in 2020

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

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Tools and curricula for qualifying employees for tasks in the wind sector are available
BZEE Windskill by European Wind Energy Skills Network

EU project from 2006 to 2009 See: www.windskill.eu

Sino-German Renewable Energy Programme Dr. Sven-Uwe Mller 15

Platform for professional education of wind power operation and maintenance staff in China
Target Groups & Fields of Activity
Instrument Target Group Fields of Activity

Training of multipliers

Trainers & Teachers

Train-the-Trainer (TTT)
Didactical skills Technical skills

Curriculum implementation

Enhance management competence

HR Managers & Voc. College Management Certification Bodies

Management of training Competence-oriented evaluation Voc. College Company Cooperation

Increase certification trasparency

Competence-oriented certification

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

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Summary
Large scale deployment of Renewable Energy installations is nothing less than the beginning of the transformation of the energy system

To get large scale deployment in RE started... Financial incentives and investors confidence in stable framework conditions are key prerequisites To develop large scale deployment in RE sustainably... Implementation is key Sustainable implementation needs a whole ecosystem including skills, technical know how and practical know how to do

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

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Thank you for your attention!

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

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You can only improve, when you know the failures: windmonitor bundled operational data of the wind farms

www.windmonitor.iwes.fraunhofer.de
Sino-German Renewable Energy Programme 19

Accommodating an increasing share of renewables needs a Smart Market Design

Smart Generation

Smart Metering

Volatile feed-in results in price fluctuations on the wholesale markets

Smart Market Design

Smart Storage Smart Consumption

Smart meters enable consumers to respond the price fluctuations, e.g.

recharge the batteries of their electric cars run appliances at a cheaper rate

Use of these methods must be financially attractive

Source : Bundesnetzagentur , German Federal Network Agency

Sino-German Renewable Energy Programme

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There are tools to reduce transactions costs for the developers

RETScreen Established and proven clean energy decision-making software 35 languages covering more than 2/3rds of the worlds population More than 33,9073 users in 222 countries Provided free-of-charge by the Government of Canada

Sino-German Renewable Energy Programme

Dr. Sven-Uwe Mller

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China adresses the issue of improvement of the grid structure

Curtailment due to peak load regulation and grid structure in Jilin Province from Jan. to Sep.,2010
3000 2500 2000 1500 1000 500 0
Jan Curtailment due to power balancing

Sino-German Renewable Energy Programme

10.000 kwh

Curtailment due to grid structure

1 2 3 4 5 6 7 8 9
Feb Mar Apr May Jun Jul Aug

Sep

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