Case Study on the Socio-Economic Benefit of Allowing Active Power Curtailment to Postpone Grid Upgrades

Magne L. Kolstad, Ove Wolfgang and Rolf Håkan Josefsen
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Magne L. Kolstad: SINTEF Energy Research, NO-7465 Trondheim, Norway
Ove Wolfgang: SINTEF Energy Research, NO-7465 Trondheim, Norway
Rolf Håkan Josefsen: Agder Energi Nett AS, NO-4848 Arendal, Norway

Energies, 2017, vol. 10, issue 5, 1-11

Abstract: The penetration of distributed generation is rapidly increasing in the power system. Traditionally, a fit-and-forget approach has been applied for grid integration of distributed generation, by investing in a grid capacity that can deal with worst-case situations. However, there is now increasing interest for the possible cost savings that can be achieved through more active network management. This paper presents a case study on the possible socio-economic benefit of postponing a grid upgrade in an area of surplus generation. Two alternatives for grid integration of an 8 MW run-on-river hydro power plant in the southern part of Norway are investigated: (i) grid upgrade; and (ii) active power curtailment whenever needed to avoid network congestion. This study shows that cost savings corresponding to 13% of the investment cost for the grid upgrade is possible through active power curtailment.

Keywords: active power curtailment; network planning; cost-benefit analysis; case study (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
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