[LDES-coremodel] Fwd: Grid-Friendly PV to enhance the value of solar electricity as solar and storage penetrations increase

Mon Sep 27 13:25:56 PDT 2021

To continue the conversation Pedro led last week.

cheers,

*Patr**i**cia Hidalgo-Gonzalez*
Assistant Professor, Mechanical and Aerospace Engineering
Affiliate Member, Center for Energy Research
Director, Renewable Energy + Advanced Mathematics Laboratory
University of California San Diego
REAM Lab website <https://patyhidalgo.github.io>
(Pronouns: She/Her/Hers)

---------- Forwarded message ---------
From: Patricia Hidalgo-Gonzalez <paty.hidalgo.g at gmail.com>
Date: Mon, Sep 27, 2021 at 1:24 PM
Subject: Fwd: Grid-Friendly PV to enhance the value of solar electricity as
solar and storage penetrations increase
To: Patricia Hidalgo-Gonzalez <phidalgogonzalez at eng.ucsd.edu>

---------- Forwarded message ---------
From: Electricity Markets & Policy, Lawrence Berkeley National Laboratory <
admills at lbl.gov>
Date: Fri, Sep 24, 2021 at 1:22 PM
Subject: Grid-Friendly PV to enhance the value of solar electricity as
solar and storage penetrations increase
To: <paty.hidalgo.g at gmail.com>

September 24, 2021
Project developer options to enhance the value of solar electricity as
solar and storage penetrations increase
Increasing the penetration of photovoltaics (PV) reduces the marginal grid
value of PV electricity, which potentially limits solar deployment and thus
impedes the achievement of decarbonization goals. PV project developers can
alter the design of plants in ways that preserve this value. Developers can
make simple tilt and azimuth adjustments or incorporate more
transformational changes such as vertical bifacial modules, provision of
ancillary services, and addition of energy storage.

A new study from Berkeley Lab, appearing in Applied Energy, analyzes the
net value (accounting for both cost and grid value) of these strategies in
the United States. The study offers a comprehensive analysis of the cost
and value of multiple standalone and hybrid PV+storage configurations
across various solar penetrations associated with historical and projected
U.S. wholesale power prices.

Some key findings:

   - Alternative PV design options can help maintain PV’s grid value, but
   the net value of different choices varies with system-wide solar
   penetration.
   - The established and emerging strategies designed to shift the timing
   of standalone PV generation at the expense of total generation result in
   minor net-value benefits or penalties.
   - Adding energy storage to the various PV configurations alters the cost
   and value results dramatically.
   - Configurations of the PV subsystem that change the timing of PV
   production become redundant with the addition of the energy-shifting
   capabilities of storage.
   - The largest net-value gains come from strategies that maximize
   generation (solar tracking plus oversized PV arrays) in conjunction with
   storage, especially at high PV penetrations.

Options for shifting the timing of PV production

We evaluate the grid value and costs of grid-friendly PV options using
wholesale market prices from a major trading hub in California (SP15) near
the center of existing PV deployment in California. Figure 2 shows the cost
and value of a subset of grid-friendly configurations relative to the base
PV plant.

The largest increases in value relative to the base PV plant are achieved
by better aligning production timing with high wholesale prices that signal
times of greatest grid needs. The value of the grid-friendly options
relative to the base PV plant depends on system-wide solar penetration,
which increases from 1.4% in 2012 to 16.3% in 2018. With higher solar
penetration, the timing of the highest wholesale prices shifts from summer
afternoons to summer evenings, whereas the lowest prices occur midday in
non-summer months.

The impact of higher solar penetration on value added by a grid-friendly
option depends on the way production is shifted by the option. PV plants
with tracking, the vertical bifacial configuration, or storage have greater
value at 16.3% penetration than at 1.4% penetration because each option
shifts solar production to higher-priced hours in the mornings and,
especially, in late afternoons to evening, relative to the base PV plant.

In contrast, the increased value of west-facing PV is greater at 1.4% than
at 16.3% solar penetration. At 1.4% penetration, westward orientation
aligns peak PV production with peak wholesale prices in the summer, at
around 2–3 pm. At 16.3% penetration, summer prices peak after 6 pm;
westward orientation still increases grid value, but the increase is less
than when penetration is 1.4%. This finding suggests limits on the
effectiveness of west-facing PV for mitigating declining marginal grid
value with higher solar penetration.
Figure 1. Value and Cost of Grid-Friendly PV Options Relative to the Base
PV Plant in California. Alternatives that increase value by more than they
increase costs relative to the base PV plant are on the upper left side of
the dashed line. The gray oval marked “CAISO*” illustrates how value and
cost vary with alternative locations across CAISO.
Maximizing the benefits of storage via high PV production

We show that the attractiveness of adding storage to PV depends on the
configuration of the PV subsystem (i.e., of the PV elements of the
solar+storage system)—mostly because of cost differences rather than value
differences. Also, the configurations of the PV subsystem that change the
timing of PV production become redundant with the addition of the
energy-shifting capabilities of storage.

Irrespective of the PV subsystem production profile, the output of
solar+storage hybrid plants during the highest-priced summer evening hours
is similar. Storage acts as a buffer that can shift limited energy from any
time during the day to the highest-priced hours in the early evening; thus,
hybrid performance during high-priced hours is largely independent of the
PV subsystem production profile.

In particular, PV subsystem configurations that sacrifice overall
production to better align solar production with times of system need (such
as the west-facing and vertical bifacial configurations) are less
attractive with storage than options that increase annual production, such
as the 1.7 ILR AC-coupled hybrid (Figure 2). This result contrasts with our
analysis of standalone PV configurations (Figure 1), in which PV with a 1.7
ILR is no more attractive than the base PV plant.

Further increasing production by combining a high ILR, tracking, and
DC-coupled batteries results in the most attractive hybrid option. The net
value of the DC-coupled, 1.7-ILR tracking configuration exceeds the net
value of the standalone tracking PV plant in CAISO using wholesale prices
from a year with high PV penetration.
Figure 2. Difference in Net Value of Standalone and Hybrid Grid-Friendly PV
Options Relative to the Net Value of the Base PV Plant. Net value is the
difference between the value of a configuration and its levelized cost
relative to the base PV plant.
Conclusion: Generation-maximizing strategies with high PV penetration

Strategies that maximize PV generation—including solar tracking and
oversized PV arrays—provide the largest net-value gains when combined with
storage, especially at high PV penetrations. Under almost all the scenarios
we analyze, a DC-coupled hybrid plant with a high ILR and single-axis
tracking provides the most net value when the PV penetration is high. This
finding aligns with the growing commercial interest in hybrid solar+storage
plants. Based on our results, the rise of hybrid solar+storage plants
fundamentally changes the design space for PV configurations.

“Project developer options to enhance the value of solar electricity as
solar and storage penetrations increase
<https://r20.rs6.net/tn.jsp?f=0016Adj9c7VYjW8XM-5hlrTtnsdDHUx0peupq7Tu1Z9Q0UkUzqnwXXMzXycfCYWLFhYi3JMGYYuNVa3hm4UlTA8nbKzfJWPfQ3qlNL8-gmYB5IE-5LS8QUObC25DIQuAX1QmigQ4cHsbsILs3lSvZ2kNyZ-J3rDT8tfWTXB3J-dJN2Jq91jW67ZX65ufjogsLzhPMNLKQv3lWU=&c=lCvkSlXRFNHyKvDbz884q6Ay58giTk9lvSrJnO8JuGOhiBpu757b9A==&ch=lDt4cMRR1ZOHhqOwsxHms6gdIVfH5E36K_XDCJcHHqNnhhJLpX57Og==>”
was authored by James Hyungkwan Kim, Andrew D. Mills, Ryan Wiser, Mark
Bolinger, Will Gorman, Cristina Crespo Montañes, Eric O’Shaughnessy, all of
the Electricity Markets and Policy Department at Berkeley Lab.

Register for a free webinar with the authors on October 6, 2021, at 10 am
PT / 1 pm ET. Registration link:
https://lbnl.zoom.us/webinar/register/WN_bC--WGnDT22EW_FJ1a_Eqw
<https://r20.rs6.net/tn.jsp?f=0016Adj9c7VYjW8XM-5hlrTtnsdDHUx0peupq7Tu1Z9Q0UkUzqnwXXMzXycfCYWLFhYxAvux6BQoMCPAtsAqGrg_5_12L9g1M8hvvskVC2fvkwUHmqUDBOCtPAu-IqlcPaDYjd1xWlYkh5vP7NRDDtk8xKX5lzqZPJw2JSnA8E1B5IF98U9EiJ6Tt5hv16ZO0zpIxGRFeZ0qAE=&c=lCvkSlXRFNHyKvDbz884q6Ay58giTk9lvSrJnO8JuGOhiBpu757b9A==&ch=lDt4cMRR1ZOHhqOwsxHms6gdIVfH5E36K_XDCJcHHqNnhhJLpX57Og==>

We appreciate the funding support of the U.S. Department of Energy’s Office
of Energy Efficiency and Renewable Energy.
The views expressed here do not necessarily represent the views of the U.S.
Department of Energy or the U.S. Government.
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