For the first time in France, a macro-economic study conducted in January 2013 by the Office of E-CUBE Strategy Consultants on “The value and costs of wind power on the power system in France“ was published exclusively by France Wind Energy (FEE).
Similar studies were conducted by the DENA for Germany and the IEAin the world, but they are not adapted to the specificities of the French system.
These results reveal that in reality, under the current scenario (50% of nuclear power by 2025 production), Wind will reduce electricity bills for consumers in 2025. Wind energy costing only 4 euros per household per year in 2013.
In 2030 (reference date taken in the Great Debate on Energy), each MWh produced wind will save 10 euros to the consumer.
The main findings of the study:
First teaching: the massive wind energy injection on the network is mechanically lower the price of electricity. In 2030, wind power can bring down the price of electricity on the market to 10%. Indeed, the wind is intended to replace more expensive energy and reduce overall electricity prices.
Second teaching: wind contributes to the good management of peak demand
During periods of extreme cold, there is more wind. Already, wind produced when demand is highest:. Power in December 2012, for example, wind covered 8% of the electricity consumption by 2020, wind could secure consumption peak of about 1 million homes, avoiding the construction of the equivalent of 10 power plants of 500 MW. This contribution limit facto production of greenhouse gas emissions.
3rd education: wind requires little investment in electricity transmission infrastructure
The study shows that infrastructure costs are moderate wind, thanks to the existing transportation network. Based on the $1 billion investment between 2007 and 2020 advanced by RTE, the cost of developing the network to accommodate the wind returns only 1 euro/MWh wind power in 2020. And most importantly, it is equivalent to that developed for alternative energy systems cost.
4th education: The wind does not require reserves to cope with variability
The study shows that the reserves have not increased since the installation of the wind in the area: By the way, in recent years, 0-7 GW of installed capacity, it is found that the wind does not require construction of additional power plants to cope with variability. As if to confirm this, RTE does not anticipate any increase in reserves by 2020.
For Nicolas Wolff, President of FEE, “This is the first time a show beneficial impacts of wind from an economic perspective for the community study. The Great Debate conducted on Energy must now take into account that light. ”
Summary of the study
An economic assessment based on a comparison of the total costs of the power system with and without wind shows that the development of wind power in France creates more value for the system than is commonly thought.
Wind generation replaces an electricity generation from other fuels (eg coal, oil, gas) and is mechanically cut prices on the electricity market. This is the value of energy substitution. In 2020, under the assumptions of the baseline scenario TEN (16 GWc wind), the value of alternative energy range up to €70/MWh. In 2030, this value exceeds €90/MWh, which is more than the purchase price obligation to present (€82/MWh).
Wind energy will contribute significantly to the management of peak demand. It avoids the installation of other assets (eg diesel generators, combustion turbines …). In its 2011 forecast balance RTE takes into account a contribution of wind up to 20% to 25% at the tip. This rate tends to decrease with the development of wind power but remain above 20% in 2020 with 16 GWp installed. In 2020, management of the tip by the wind could be assessed to 3 € / MWh in 2030 to 10 € / MWh. Third, the overhead of network investments (5) due to the wind seems to be second order.
The magnitude of advanced RTE investment is € 1 billion by 2020 which is confirmed by the publication of the first S3REnR (Regional Network Connection Diagrams Renewable Energy), about 1 € / MWh wind. This amount is also put into perspective in relation to investments needed to connect other means of production. (6)
Finally, the intermittent nature of wind power does not require the implementation of additional reserves
to ensure balancing of the system. Today, while 7 GWc in service, no effect was observed on systems that manage RTE services, whether in the design of primary and secondary reserves or volumes called in the framework of the Mechanism adjustment. In the medium term, 2020, RTE also anticipates no additional need, the main sources of unpredictability in the short term (the second or minute) is less than the force of the wind that an unexpected shutdown nuclear power plant.
In 2030 under the baseline scenario TEN (30 GW of wind) economic assessment of wind power to the electrical system is very positive (A value of €100/MWh vs. a purchase price obligation €82/MWh for onshore wind, a balance of €18/MWh). He is whatever the scenario chosen energy transition in the context of nuclear share now at 50% of the mix.
In 2025, wind could enroll in direct competition with other production assets. This integration into a market mechanism must be accompanied by a change in the market reflects the full value of wind energy.