grid without addressing the impacts on the system as a whole may substantially increase electricity prices while reducing grid stability.
Accelerating VRE Integration
Accelerating VRE integration requires a multifaceted approach, including development of strong policy frameworks, long-term planning perspectives in power plant and transmission infrastructure investments, advancement of grid operations and increased engagement with civil society and the private sector.
Although capital costs for VRE technology are falling along with the need for high-cost subsidies, lacking, complicated or even conflicting policies create unpredictable and unattractive investment environments, and can lead to unintended and potentially unfavourable outcomes for VRE integration. The national policy framework provides the underpinnings for successful integration, and its level of comprehensiveness, alignment with national context and pairing with concrete measures to promote VRE will largely determine the ability to advance the use of VRE within power systems.
The Asia-Pacific region is clearly moving forward on the development of VRE, and ESCAP member States continue to adopt a variety of policies to promote renewable energy grid integration. Incentives to encourage investment have been introduced in several countries, such as tax deductions, feed-in-tariffs, funding mechanisms and publicly sponsored research and development. Steps towards removal of noneconomic barriers are also evident, including co-ordinated and expedited permitting and grid connection procedures. Clearly, lessons in VRE integration can already be shared. However, experience in the region also points to the significant need for the further development of comprehensive policy frameworks and enabling environments that can support ambitious targets being set.
Furthermore, investment in the expansion and reinforcement of transmission infrastructure and advanced grid operations is required to connect generation sources, which may be located in areas with little population, to demand centres that may be located across vast geographical distances or across international borders. At the same time, dis-incentivising polluting and carbon-intensive power generation could boost VRE development while reducing a number of social, economic and environmental costs.
Grid Flexibility for Stability and Cost Control
When integrating a diverse set of resources and significant shares of VRE, grid flexibility is fundamental for maintaining system stability, enabling increased market competition and controlling electricity prices. Achieving high levels of flexibility requires a combination of strategies and policies. Comprehensive system planning is needed along with optimisation of power system features. The use of integrated power markets supports system flexibility and can provide a large geographic balancing area. Keys to this include the removal of cross-border tariffs, as well as congestion management through the use of a system operator, which acts as the interface between energy producers and consumers, operating and expanding the power transmission grids or balancing frequency and voltage to allow electricity to flow more freely and efficiently. For isolated markets, the use of demand resources, such as demand response used during net load events can enable grid balancing while integrating VRE. For all systems, the integration of advanced forecasting systems reduces the impact of renewable energy variability to improve system reliability.
Conclusion
With ESCAP actively promoting RE for the region, Malaysia can be credited for similar efforts beyond the FiT( Feed-in-tariff) by expanding the RE Agenda via the NET Energy meeting and large scale solar initiatives and introducing the National Energy Efficiency Action Plan 2016-2025.
Source: ESCAP Regional Trends Report on Energy for Sustainable Development in Asia and the Pacific 2015. For more info, refer to www. unescap. org
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