IEEE Power & Energy Magazine - September/October 2017 - 77
september/october 2017
82.7%
82.0%
79.7%
77.4%
77.1%
76.8%
72.4%
68.6%
64.7%
2008
2009
2010
2011
2012
2013
2014
2015
2016
100
80
60
40
20
0
84.3%
Brazil is experiencing pressures toward changes in its electricity generation portfolio, which may result in development
opportunities for storage technologies other than the water reservoirs associated with traditional hydropower plants. On the
one hand, social/environmental constraints limit the addition
of large hydropower plants capacity in the country and have
fundamentally changed the profile of plants built in recent
years. The decreasing share of hydropower plants in the ex--
pansion of the system is illustrated in Figure 8. Most of the
economic potential of large hydro plants in the regions with the
highest concentration of demand has been exhausted, limiting
the exploration of new hydropower potential in the Amazon
region or its vicinity. Recently built large hydropower plants
have little reservoir capacity and significant seasonal inflow
variability-as is the case with the Belo Monte hydropower
plant, the total installed power of which will be approximately
11 GW. Although Belo Monte and other recently built hydropower plants have some reservoir capacity (allowing intradaily and, in some cases, intraweekly temporal arbitrage), the
absence of large reservoirs affects their ability to provide all
services mentioned earlier as efficiently as those power plants
that have historically done so in Brazil.
On the other hand, and perhaps more importantly, the
participation of renewable generation resources with significant variability in the short term has increased in recent
years. Figure 9 shows the generation capacity contracted via
long-term auctions in Brazil since 2007 and the average contracting prices for wind and solar photovoltaic power plants.
This suggests that the participation of wind power in the
Brazilian electricity matrix will continue to increase above
the share shown in Figure 8, as many projects contracted via
auctions held after 2013 have not yet begun operations.
As the most significant parcel of the already commissioned wind power plants is concentrated in the northeast
of Brazil, the effects of the increasing participation of these
2007
Changing the Technology Mix and
Value of Energy Storage
renewable generation technologies on the value of the services discussed earlier-notably, temporal energy arbitrage
and capacity adequacy-are already being experienced in
this subsystem. The current situation in the northeastern subsystem is as follows.
The hydrological behavior of the São Francisco River
basin has recently been the object of attention in Brazil. Most
of the hydropower plants in the northeast are located in this
river basin, which accounts for over 90% of the water storage capacity of the northeast. As indicated in Figure 6, water
inflows in the northeast have been below the historical average in recent years, which has contributed to a significant
depletion of reservoir levels in this region. In fact, according
to reports issued by the Brazilian Independent System Operator, Operador Nacional do Sistema Elétrico, aggregated reservoir levels of the power plants in the São Francisco River
basin reached levels close to 5% of the storable energy capacity at the beginning of 2016, and then increased to levels of
approximately 17% by the end of that year.
Low reservoir levels impose hurdles for the exclusive
reliance on the region's hydropower plants to provide the
temporal arbitrage services necessary to cope with the variability of wind power output and cover the capacity needs
of the system in periods of low wind power production. Figure 10 illustrates the variability of aggregated wind power
production for the two states of the northeast with the largest
installed capacity of this technology.
Considering the limits on the flexible operation of local
hydropower plants imposed by the depleted reservoir levels,
thermal plants in the region have been operating in a cycling
regime, and imports from other regions have had a key role in
the strategy to counteract the short-term variability of wind
generation in the northeast. The operation of thermal power
plants with frequent cycling has not been a common feature
in Brazil until recently. In recognition of this fact, the Brazilian regulator recently held Public Consultation #014/2016
to gather contributions from various stakeholders for the
elaboration of regulatory mechanisms to cope with the costs
imposed by this operation modality. On the other hand,
the use of transmission interconnections for imports has
Share of Installed
Capacity (%)
requirement, except for wind and solar plants.) In short, the
assets are selected by the system operator on an ad hoc basis
under a command-and-control approach, with long-term contracts signed for the provision of these ancillary services.
Also, remuneration consists solely of reimbursing the costs
to install, operate, and maintain telecommunication and control systems to provide these services, without payments for
incremental or opportunity costs. Due to the cost dynamics
described earlier, all assets currently holding contracts for
the provision of secondary frequency control and associated
reserves are hydropower generators, most having large reservoirs. The monetary value of the associated reimbursements
has been nearly negligible-for instance, in 2016 the Regulated Revenues for the Provision of Secondary Frequency
Control were equal to BRL$44,200 (less than US$15,000
at that year's exchange rates) per year and per power plant,
regardless of its installed power.
Other
Wind
Hydro
figure 8. The evolution of installed generation capacity in
Brazil's National Interconnected System, 2007-2016. [Data
source: ONS, A
- gência Nacional de Energia Elétrica (ANEEL).]
ieee power & energy magazine
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Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - September/October 2017
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IEEE Power & Energy Magazine - September/October 2017 - Cover3
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