Action needed for large-scale integration of solar and wind – IEA

Government action, enhanced infrastructure and regulatory reforms are necessary to ensure the successful large-scale integration of variable solar PV and wind, says the IEA.

In a new report the IEA indicates that robust data, stakeholder collaboration and government prioritisation of integration measures are essential for overcoming the renewable integration challenges and meeting the global energy transition targets.

Intended as a stocktake of efforts to integrate variable renewables across 50 power systems, accounting for almost 90% of the global solar PV and wind power generation, the report finds that systems at early phases of variable renewable integration can accelerate deployment with relatively low system impact, but those in high phases face more complex challenges related to stability and flexibility.

This in turn calls for a transformation of how power systems are operated, planned and financed.

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Commenting, IEA director of Energy Markets and Security Keisuke Sadamori said that in recent years, the world has seen a remarkable increase in solar and wind capacity – more than doubling between 2018 and 2023 – as countries have looked to bolster their energy security and reduce emissions.

“But they won’t reap the full benefits without stronger efforts to support the integration of these technologies into power systems. As global experience grows, so does our understanding of how to keep clean energy transitions moving forward securely.”

Low variable renewable energy shares

The report points to most of the current growth in variable renewable generation occurring in systems at low phases of integration (i.e. phases 1 to 3). These systems are primarily located in emerging market and developing economies, including India and Brazil along with others in the Middle East, Asia, Africa and Latin America.

Systems in these phases experience relatively low impacts as solar PV and wind generation increases, with most challenges addressable through modifications to existing assets or operational improvements that increase flexibility.

Such measures, which can be implemented in a targeted and progressive manner, include optimising dispatch processes and improved forecasting, soliciting higher flexibility and system services from both conventional and variable renewable power plants, enabling industrial demand response and enhancing grid infrastructure.

Higher variable renewable shares

For systems that have reached phase 4 or higher, with up to 75% of variable renewable energy in their generation, such as those in Denmark, Ireland, South Australia and Spain, existing technological solutions that are either mature or commercially available can help address the challenges of a higher focus on stability and a growing need for flexibility across all timeframes.

These range from modern converter controls to battery energy storage.

However, the key to their successful rollout often lies in appropriate policy and regulatory action rather than new technological breakthroughs, the report comments.

For phase 6, viable technologies exist but their implementation at a large scale remains limited, requiring additional testing or economic incentives for deployment.

The report states that integrating high shares of variable renewables requires a paradigm shift in power system operation, planning and financing.

Essential elements include modernising system operation practices, improved strategic planning and overhauling regulatory frameworks.

Market design must evolve to accommodate the unique characteristics of solar and wind-dominated grids, new technologies and the new role of conventional generation as the provider of essential system services rather than energy.

Future challenges

The report adds that while significant progress has been made by frontrunner systems, the continued and accelerated variable renewable energy growth in the coming decade will likely unveil new integration challenges.

These may come from frontrunner systems reaching unprecedented levels of variable renewables or from systems with unique local conditions that require innovative solutions.

Many additional systems, including those in Australia, Japan, Italy and Brazil, are expected to reach phase 4 or higher by 2030. For these, an ongoing focus on developing integration measures, coupled with global sharing of effective policies, regulatory frameworks and market design elements, will be crucial.

Neverthless, some key issues for power systems with very high variable renewable penetration remain unresolved. These include addressing seasonal variability concerns, operating systems with very high levels of converter-based resources, ensuring the profitability of new investments amid increasing price volatility and appropriately remunerating assets that provide flexibility for their system value.

Resolving these challenges will require continued innovation, collaboration and commitment from policy makers, technology leaders and researchers worldwide, the IEA concludes.