By Marco C. Janssen, UTInnovation, the Netherlands
With a large part of the electricity still being generated using fossil fuels, and many electricity grids facing congestion due to the success of PV solar and electric vehicle programs, the challenge many countries are facing needs to be carefully addressed.
The energy transition is a hot topic nowadays and politicians and industry leaders continue to push for the creation of a carbon neutral electricity grid by 2050 or even sooner.
However, with a large part of the electricity still being generated using fossil fuels and many electricity grids facing congestion due to the success of PV solar and electric vehicle programs the challenge many countries are facing is how to facilitate phasing out fossil fuels without creating major volatilities in the supply of electricity.
I think the answer lies in a smart combination of renewable energy deployment such as:
- Wind and solar, with energy storage solutions and
- Hydrogen production
If these three solutions are combined such that a surplus of renewables and energy storage exists compared to the demand, then at times when the demand is lower than the energy that renewables generate, the energy storage systems can be charged and if a further surplus is available this can be used to generate hydrogen.
During hours of low renewable energy generation, a combination energy storage systems and hydrogen powered power plants can provide the energy to meet the demand.
If such a combination of solutions is provided both on-grid and off-grid a whole new market setup can be created which includes flexible pricing for energy storage as both a source for energy generation and energy demand (a grid stabilizer basically) as well as a market for hydrogen and derivatives production (such as ammonia), transportation and sales.
The latter could spark a whole new line of businesses to emerge, that provide the resources and the solutions based on hydrogen and its derivatives and that help those regions that may face challenges with the amount of renewable energy that can be deployed economically and technically.
A key element, besides the development of sufficient alternatives is how countries define how the revenue streams and the benefits obtained from renewable energy, energy storage, and hydrogen production shall be distributed between the different stakeholders based on the provided value and how this shall be regulated.
With regards to regulation, it is important to engage all stakeholders to discuss and define:
- The long-term objectives,
- The operational aspects and
- The mechanisms to recover the required investments when moving towards carbon neutral electricity grid
Here is where I see the biggest challenge as several stakeholders may have different incentives and objectives creating a political minefield that needs to be navigated with care to ensure all stakeholders stay on board and move together towards the best solution for:
- the grid
- the country and
- the planet,
but with the right level of will power this can be achieved.
Biography:
Marco C. Janssen is the CEO of UTInnovation and the former VP of Operational Excellence at TAQA, Digital Grid Leader for Latin America at EY and Director of the Smart Grid PMO at DEWA. He received his BSc degree in Electrical Engineering from the Polytechnic in Arnhem, Netherlands and has worked for over 33 years in the field of Power and Water O&M, Digital Transformation, Protection, AMI and Distribution and Substation Automation. He was a member of IEC TC57 WG 10, 17, 18, 19, the IEEE PES PSRC and CIGRE B5 and D2 WGs. He was the convenor of D2.35 and editor of the Quality Assurance Program for the Testing Subcommittee of the UCA International Users Group. He holds one patent, is the author of the book titled “Recreating the Power Grid”, has authored more than 53 papers, is co-author of 4 Cigre Technical Brochures and 2 books on SmartGrids and Electrical Power Substations Engineering and is the author of the “I Think” column in the PAC World magazine.
