Growing solar power capacity and its impact on the energy system
The solar sector in Poland is expanding at an impressive rate. According to the latest forecasts, installed PV capacity is expected to double by 2027, reaching approximately 20 GW. This is an optimistic outlook for the energy transition but also poses a major challenge for grid operators.
Solar energy production is highly variable, dependent on seasons and weather conditions. On sunny days, particularly in spring and summer when energy demand is lower, the power system must cope with sudden production surges. In March 2024, the Polish Transmission System Operator (PSE) issued six orders for non-market redispatching of generating units, resulting in the shutdown of solar farms for a total of 24 hours.
Non-market power redistribution mechanisms
Non-market power redistribution is a process in which the transmission system operator (PSE) decides to limit or completely shut down energy production from certain sources to ensure the stability of the power grid. In cases of solar energy overproduction, PSE must act quickly to prevent grid overload.
The decision to shut down generating units depends on criteria such as location, capacity, and the impact on system stability. These shutdowns most often affect large solar farms, which have the greatest influence on the energy balance. However, the economic consequences for farm owners can be substantial. Every hour of shutdown results in lost revenue from energy sales.
The compensation system and its impact on the RES sector
The current compensation procedure requires PV installation owners to notify the grid operator within 14 days of the amount of energy not produced due to shutdowns. This is crucial for maintaining the profitability of solar investments, especially given the increasing frequency of such events.
However, the compensation system is not a long-term solution. The RES sector is advocating for more systemic approaches that would allow for more efficient management of energy surpluses.
he second balancing market reform
The second balancing market reform aims to address the challenges associated with integrating renewable energy sources. Its key objectives include increasing system flexibility and engaging a broader range of market participants in the balancing process. The reform will not only involve large producers but also smaller generators, prosumers, and energy consumers. This opens up new opportunities for PV installation owners, who can participate in the balancing market by offering flexibility services.
Stabilizing the power system
Energy storage will play a critical role in stabilizing the power system in the future. Energy storage technologies are advancing rapidly, offering increasingly efficient and cost-effective solutions. These storage systems can hold excess solar energy and provide system services such as frequency regulation and power reserves.
Another important component will be Demand Side Response (DSR) services, which allow consumers to actively participate in the energy market. This mechanism enables the management of energy consumption in response to market signals. Through DSR, consumers can adjust their energy demand in real-time, helping alleviate the effects of renewable energy overproduction on the power grid.
It is also worth mentioning the potential of Power-to-X technologies, which convert excess electricity into other forms of energy, such as hydrogen, heat, or synthetic fuels. This process enables energy storage and utilization during periods of lower renewable energy production.
Conclusion
Integrating large volumes of solar energy is one of the main challenges facing the Polish power system. While non-market power redistribution is currently necessary, it is only a temporary solution. The future lies in innovative technologies and flexible market solutions that will enable the full utilization of renewable energy potential.
As a leader in Operations & Maintenance for large solar farms, Nomad Electric actively supports the energy transition. We closely monitor the development of technologies and regulations in the RES sector to offer our clients the best solutions in an evolving market environment.
Frequently asked questions (FAQ)
1. What is overproduction of energy from photovoltaics?
Overproduction of energy from photovoltaics occurs when photovoltaic installations generate more electricity than current demand. This phenomenon is particularly visible on sunny days with low energy demand, for example in spring and summer.
2. How does energy overproduction affect the power system?
An excess of energy may lead to overloading of the power grid. To prevent this, transmission system operators implement non-market redispatch mechanisms.
3. What is non-market redispatch?
It is a process of managing energy production in which the system operator limits or shuts down production from certain sources such as photovoltaic farms to avoid grid overload. These decisions are made based on technical and locational criteria.
4. How can photovoltaic farm owners obtain compensation for curtailments?
Installation owners can report the amount of ungenerated energy to the operator within 14 days from the curtailment. On this basis, they may apply for compensation, which helps minimize financial losses.
5. How can energy surpluses be managed?
Energy surpluses can be stored in energy storage systems or converted into other forms such as hydrogen or heat using Power to X technology. DSR (Demand Side Response) services also enable adjustment of energy demand.
6. What are the benefits and challenges associated with overproduction of energy from photovoltaics?
Overproduction creates challenges such as the need to invest in grid infrastructure and storage technologies, but also opportunities such as the development of flexible energy markets and innovative technologies. With proper management, it can accelerate the energy transition in Poland.
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