Adding solar PV to the Saudi power system: what is the cost of intermittency?

Abstract

With 2015 as a reference year, we quantify the costs of solar photovoltaics (PV) intermittency and integration to power utilities in Saudi Arabia. We define intermittency costs as the costs of ramping and maintaining spinning reserves, while integration costs are defined as the costs of intermittency plus the costs of grid upgrades if they were needed. The operational facets of PV integration to grid operators will be more pronounced with higher PV penetration, so to focus on operation, we exclude capital costs. The cost of intermittency, excluding any benefits attained from PV operation, rises to 1.3 ¢/kWh of energy provided by PV at 20 GW of PV deployment. At low levels of penetration, renewables may impose negligible cost or even confer net benefits. However, above a certain level, costs will always outweigh benefits—what we refer to as the ‘Operational Blend Wall’. It was found that the operational blend wall for Saudi Arabia was 11 GW, based on actual fuel costs prevailing in the period of study. The net financial effect of PV integration on operation, considering both costs of benefits, was an increase of 0.04 ¢/kWh and occurs at 20 GW of PV deployment. The maximum capacity of PV addition considered is 20GW, which represents a 25% penetration level within the power system.