Capacity credit and market value analysis of photovoltaic integration considering grid flexibility requirements

Abstract

Abstract Rising share of integrated variable renewable energy production may create power curtailment and renewable market value drop. In this work, the states of examined objectives that experienced rising photovoltaic (PV) penetration are described, challenges considering ramp rates and renewable curtailment illustrated. Meanwhile, a renewable capacity credit analysis approach was introduced, scenarios for PV integration were illustrated through an integration model considering the grid operational constraints, and the resulting PV power capacity credit was also presented. Results indicated that surplus generation presented significant monthly variations, and PV capacity credit value presented a lower increasing rate with rising integrated PV power capacity. The effect of a rising integrated PV power system on electricity trading price was illustrated based on open market data. The value of real-time market trading price presented a decreasing trend in response to a rising contribution of PV power production to flexible load. A decrease was obvious at initial rising integrated PV production, and more than half a drop was observed when flexibility limitation was reached. Furthermore, the economic performance of power to heat and power to gas for excess PV power production utilization was assessed and compared, annual utilization ratio plays a crucial role in their cost competitiveness.