Elsevier

Energy

Volume 163, 15 November 2018, Pages 100-114
Energy

Cost optimal scenarios of a future highly renewable European electricity system: Exploring the influence of weather data, cost parameters and policy constraints

https://doi.org/10.1016/j.energy.2018.08.070Get rights and content

Highlights

  • Influence of input data and assumptions for a highly-renewable scenario are studied.

  • System costs are robust to input weather data and moderate cost assumption changes.

  • Onshore wind can be replaced by offshore at low cost if there is enough national transmission.

  • As carbon dioxide limits are tightened, costs rise only slowly if there is grid capacity.

  • Storage is economic above 80% renewables; without storage 99.9% is possible, but costs double.

Abstract

Cost optimal scenarios derived from models of a highly renewable electricity system depend on the specific input data, cost assumptions and system constraints. Here this influence is studied using a techno-economic optimisation model for a networked system of 30 European countries, taking into account the capacity investment and operation of wind, solar, hydroelectricity, natural gas power generation, transmission, and different storage options. A considerable robustness of total system costs to the input weather data and to moderate changes in the cost assumptions is observed. Flat directions in the optimisation landscape around cost-optimal configurations often allow system planners to choose between different technology options without a significant increase in total costs, for instance by replacing onshore with offshore wind power capacity in case of public acceptance issues. Exploring a range of carbon dioxide emission limits shows that for scenarios with moderate transmission expansion, a reduction of around 57% compared to 1990 levels is already cost optimal. For stricter carbon dioxide limits, power generated from gas turbines is at first replaced by generation from increasing renewable capacities. Non-hydro storage capacities are only built for low-emission scenarios, in order to provide the necessary flexibility to meet peaks in the residual load.

Introduction

In order to meet the ambitious target of reducing carbon dioxide (CO2) emissions in the European Union by 80%–95% in 2050 compared to 1990 values, the electricity system has to undergo a fundamental transformation (see for instance the Energy Roadmap 2050 from the European Commission [1]). Wind and solar power plants are already today both mature and cost-efficient technology options, which can be scaled up to act as the basis of a low-emission future power supply (see Ref. [2] for an analysis of the increasing cost-competitiveness of renewable power generation technologies, and [3] for a discussion of cost-effective renewable energy options for all EU Member States). The challenges presented by the temporal fluctuations in these resources can be met with low-carbon technologies such as existing hydroelectricity power plants, or with storage options like batteries or hydrogen storage, which still have significant potential for further development. The benefit of the flexibility provided by storage has for instance been studied for a simplified model of a highly renewable European electricity system in Ref. [4], or with a focus on pumped hydro storage and wind power generation for the Irish system in Ref. [5]. In Ref. [6] the authors focus on least-cost combinations of renewable generation and storage for a large regional grid, whereas in Ref. [7] also the role of the spatial distribution and dispatch of storage capacities on continental scale in a European electricity system with 80% power production from variable renewable energies has been studied.

With respect to the spatial variability of weather-dependent renewable generation, large-scale power transmission capacities play a decisive role to provide a smoothing effect and to connect generation capacity at favourable distant locations with the load centres. The systemic advantage of aggregating variable renewable power generation over large distances has already been observed in the pioneering study by Czisch in Ref. [8]. This benefit of transmission has been confirmed in studies using more detailed models, which also take into account limitations and costs of the transmission infrastructure (see for instance [9] for a systematic study with regard to the renewable penetration levels and mixes, [10] for additional detailed backup capacity optimisations, or [11] for a techno-economic optimisation study at high renewable shares.

Given the complexity of such a system, in particular with respect to the spatio-temporal patterns and correlations in the renewable generation and load time series, it is a difficult task to deduce a cost-efficient overall system layout from heuristic principles alone. As a consequence, computational models are a central element in the development of policy guidelines for the design of a future low-emission energy system (see Ref. [12] for a recent review). For each model, choices have to be made regarding the methodological scheme and the scope of its system representation (for instance the spatial and temporal scale, or the choice of energy sectors and technology options considered in the model). The resulting diversity of system models represents a challenge for the interpretation and comparison of the corresponding results, in particular if the underlying input data or modelling details are not publicly accessible. In this context, open energy modelling promises to provide a more transparent and comprehensible scientific approach (see the discussion in Ref. [13] or [14]).

However, even for a single system model for which all input data and modelling details are transparent, the deeper understanding of the numerical results that is fundamental for robust policy advice can be hindered by the dependence of the results on the choice of the model parameters. In particular the details of the input data, the cost assumptions, and the constraints employed in the model all affect the properties of the resulting scenarios in a non-trivial way.

In this contribution these issues are addressed by studying in detail the influence of weather data, cost parameters and policy constraints on the properties of cost optimal scenarios of a future highly renewable electricity system taken from Ref. [11]. It is shown that the total system costs are only weakly affected by the choice of the input weather data or by small changes in the capital costs. The optimisation landscape is flat in many directions, which allows system planners to choose between different near optimal system configurations without a significant increase in total costs. With respect to policy constraints, the investigation of a wide range of CO2 emission limits helps to understand the mechanisms in the cost-efficient interplay of different technology options along the pathway towards a future low-emission electricity system.

The approach taken in the present contribution goes beyond the small variations of a few selected input parameters that are commonly used in the literature to test robustness. Here very large changes to input parameters are considered to try to understand fully what role each system component plays in the cost-optimal system.

In the literature, the consideration of different input assumptions is often limited to the focus of the respective study. For instance in Ref. [11], Schlachtberger et al. focus on the role of transmission expansion for the layout and cost structure of a low-emission European electricity system. The parameter variation is then mainly limited to the constraint for the total transmission capacity as the crucial parameter of the study, but not expanded in a similar way to other model dimensions. Similarly, in Ref. [15] the authors analyse the effects of grid extensions in a renewable Europe, with a focus on the influence of the composition of the power generation in the system. The screening of parameter ranges for the renewable penetration and the mix between solar and wind is the central line of the investigation. In other cases, a sensitivity analysis of modelling results is added to the presentation of a numerical study to assess the robustness of the numerical findings. Such an analysis usually addresses only a few key parameters, but is not central to the understanding of the workings of the system. For instance in Ref. [10], the authors model a renewable-based European electricity system including storage options and concentrated solar power. Choosing different investment costs for storage, grid and backup technologies, they find that although the system composition and operation is highly dependent on these parameters, the overall system cost is only slightly affected.

This article starts with a review of the model and the data inputs in Sec. 2. In Sec. 3 results on the sensitivity to different samples of weather and load data and in Sec. 4 to changes in the cost assumptions are presented. The subsequent Sec. 5 explores the role of policy constraints, such as limits on the expansion of onshore wind, or different CO2 limits. Finally in Sec. 6 the limitations of this study are discussed, before conclusions are drawn in Sec. 7.

Section snippets

Methods

The following sections briefly review the underlying model and data as well as properties of some of the resulting scenarios of a future European electricity system discussed in Ref. [11].

Results I: Sensitivity to the input weather and load time series

The base scenarios presented in Ref. [11] build on time series for renewable generation potential and consumption with hourly resolution for the year 2011. Previous investigations in Refs. [29,30] show that the outcomes of energy system models depend to some degree on the sampling and time resolution of the input data as well as the data reduction method. Similar observations have been made in Ref. [31] in the context of the role of sampling and clustering techniques for offshore grid expansion

Results II: Sensitivity to cost assumptions

Estimates for the future development of costs for technologies that are yet to undergo very large-scale deployment are intrinsically uncertain. In particular solar PV and storage costs could potentially drop significantly over the next decades (see Ref. [17] for an overview of prospective electricity generation costs until 2050, and in particular [37] for a discussion of the cost development of solar PV). Since cost assumptions are a crucial input parameter for the optimisation approach in

Results III: Influence of policy constraints

In Ref. [11] the role of different levels of constraints on transmission capacity expansion for cost-efficient layouts of a European electricity system is investigated. The limited geographic potential of different generation and storage technologies as well as a cap on CO2 emissions entered as fixed constraints into the optimisation. However, for onshore wind a further restriction beyond geographical limits due to public acceptance issues is plausible. In a second investigation different CO2

Discussion: Limitations of the study

This contribution studies the sensitivity of cost optimal scenarios to various influences for the model presented in Ref. [11]. The investigations are explicitly not extended to alternative models, which might apply different methodological approaches, incorporate other sectors (like heating and transport) and other technologies (for instance nuclear generation or carbon capture), or consider a finer temporal or spatial scale. Such alternative models will show different sensitivities, depending

Summary and conclusions

Models of the electricity system give important insights into how to cost-efficiently combine different technology options in the framework given by the physical, environmental, or societal constraints of the system. Even if the methodological approach and the scope of a model is fixed, the simulation results will depend on the assumptions concerning the input data, input parameters, and constraints inside the model. Using the techno-economic optimisation model for the European electricity

Acknowledgements

The project underlying this report was supported by the German Federal Ministry of Education and Research, Germany under grant no. 03SF0472C. Mirko Schäfer is partially funded by the Carlsberg Foundation, Denmark Distinguished Postdoctoral Fellowship. David Schlachtberger, Tom Brown and Martin Greiner are partially funded by the RE-INVEST project (Renewable Energy Investment Strategies – A two-dimensional interconnectivity approach), which is supported by Innovation Fund Denmark (6154-00033B).

References (54)

  • K. Schaber et al.

    Transmission grid extensions for the integration of variable renewable energies in Europe: who benefits where?

    Energy Pol

    (2012)
  • S. Hagspiel et al.

    Cost-optimal power system extension under flow-based market coupling

    Energy

    (2014)
  • D. Heide et al.

    Seasonal optimal mix of wind and solar power in a future, highly renewable Europe

    Renew Energy

    (2010)
  • G.B. Andresen et al.

    Validation of Danish wind time series from a new global renewable energy atlas for energy system analysis

    Energy

    (2015)
  • S. Pfenninger

    Dealing with multiple decades of hourly wind and PV time series in energy models: a comparison of methods to reduce time resolution and the planning implications of inter-annual variability

    Appl Energy

    (2017)
  • L. Kotzur et al.

    Impact of different time series aggregation methods on optimal energy system design

    Renew Energy

    (2018)
  • P. Härtel et al.

    Assessing the impact of sampling and clustering techniques on offshore grid expansion planning

    Energy Procedia

    (2017)
  • J. Deane et al.

    The impact of sub-hourly modelling in power systems with significant levels of renewable generation

    Appl Energy

    (2014)
  • T. Brown et al.

    Response to ‘Burden of proof: a comprehensive review of the feasibility of 100% renewable-electricity systems’

    Renew Sustain Energy Rev

    (2018)
  • D. Schlachtberger et al.

    Backup flexibility classes in emerging large-scale renewable electricity systems

    Energy Convers Manag

    (2016)
  • I. Batas Bjelić et al.

    Simulation-based optimization of sustainable national energy systems

    Energy

    (2015)
  • I. Batas Bjelić et al.

    Two methods for decreasing the flexibility gap in national energy systems

    Energy

    (2016)
  • I. Staffell et al.

    Using bias-corrected reanalysis to simulate current and future wind power output

    Energy

    (2016)
  • D. Hdidouan et al.

    The impact of climate change on the levelised cost of wind energy

    Renew Energy

    (2017)
  • European Commission

    A roadmap for moving to a competitive low carbon economy in 2050

    (Mar. 2011)
  • IRENA

    Renewable power generation costs in 2017

    (2018)
  • IRENA

    European Commission, Renewable energy prospects for the European Union

    (2018)
  • Cited by (113)

    View all citing articles on Scopus
    View full text