This study looks at an alternative approach to meeting all system services provision via a ‘Zero-Carbon Model’. We have analysed the societal benefits – in terms of CO2 emissions reduction, operational cost savings and reduced renewable curtailment – of procuring all system services from zero-carbon technologies, compared with an alternative scenario where fossil fuels continue to be the predominant provider.
Key findings – what have we learned?
- Procuring system services from zero-carbon providers could reduce all-island power sector emissions by almost 2 million tonnes of CO2 per year by 2030. This is equivalent to one third of total 2030 power sector emissions that could be avoided by transitioning to a Zero-Carbon Model.
- There are significant operational cost savings associated with sourcing all system services from zero-carbon sources, with up to €90m per year of savings by 2021, increasing to €117m per year by 2030, primarily from avoided fuel and carbon costs. We project an annual operational cost saving of €57m per year by 2030 if reserve requirements alone are met by zero-carbon technologies
- There is a significant reduction in renewable curtailment if system operational constraints are met using zero-carbon service providers. In 2030, our analysis suggests a greater than 50% reduction in renewable curtailment from 8.1% to 4.0%. This reduction in the curtailment of zero-marginal cost renewables results in lower electricity generation costs as it displaces more expensive, typically fossil-fuelled, generators in the production of electricity.
Watch Mark Turner present the findings of this study at the IWEA Autumn Conference 2019
For more information on the contents of the report or how Baringa can help your organisation, please contact Mark Turner and Alec Granville-Willett.
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