Dr Dirk Biermann of 50Hertz shares his thoughts on renewable energy integration and the need for regulations to keep pace with the changing energy landscape.
1. As the world moves towards a more sustainable energy mix, how does 50Hertz successfully integrate renewable energy into the grid?
In the past, the German power system was operated with only a few hundred power plants. Today, several millions of power plants – most of them very small generation units such as PV or wind turbines – shape the energy landscape. A corner stone for the German energy transition certainly is the ongoing extension of the grid. With a large share of generation in the north and most of the industry in the south, considerable investments in the underlying electricity system are needed. Of course, grid development is only one part of the story. Market development plays an integral role in the integration of more volatile renewable feed-in. The reaction of utilities was to make their power plants more flexible. Even rather inflexible lignite power plants are now reducing their generation significantly in times of high renewables feed-in.
2. How has digitalisation impacted and improved operations for Transmission System Operators (TSOs)?
The contributions of digitalisation are manifold. For TSOs, it is important to monitor and forecast energy flows in the grid more accurately and to adjust to changes in energy supply and demand accordingly. Also, market participants are more invested in better forecasts and intelligent algorithms. With more and more consumers now actively managing their energy demand and participating in the energy markets, supply and demand is better balanced today than it was when only a few power plants had to supply inflexible consumers. With a foreseeable broader roll-out of smart meters throughout Europe, consumers will have a higher share in integrating renewable energy more efficiently while keeping the grid stable.
3. From the perspective of a transmission system operator, how can regulations evolve to keep pace with the changing energy landscape?
All aspects mentioned – some more, some less – are linked to the regulatory framework set at both national and European level. To fulfil our societal and legal obligation to make the grid fit for a renewables-based electricity system, substantial investments are needed. At 50Hertz, we plan to invest 3.4 billion Euros into the further development of our grid in the coming five years only. To get the necessary confidence and trust of investors, we need to make sure that investing in grid infrastructure is subject to regulatory certainty and allows for market-based returns. Looking at the energy landscape as a whole, there is a growing need for more flexible options at both the producer and consumer level. Therefore, politics and regulatory authorities need to provide the right incentives to encourage innovation and foster further market development.
4. Europe has successful examples of cross-border power integration. What are some learning points for Asia?
There are several key success factors that paved the way towards a more integrated energy market in Europe. First, the unbundling of TSOs as the basis for a clear separation between generation and transmission. Second, the liberalization of the energy markets. In our opinion, the integration of high shares of renewables in combination with active consumers can only be tackled with market mechanisms. Third, increased interconnectivity between TSOs and strong multilateral cooperation – including national regulatory authorities and governments. For example, 50Hertz together with other European TSOs voluntarily established CORESO and TSCNET as Regional Security Coordinators (RSCs), which offer crucial planning support to the national TSOs. These RSCs support TSOs in secure grid operations with coordination services.
5. The theme for SIEW 2019 is Accelerating Energy Transformation. What do you look forward to being discussed this year?
With more than 56 per cent of overall electricity consumption in our control area covered by renewables today, we see 50Hertz as a frontrunner in integrating high shares of renewable energy into the system. Still there are tremendous challenges ahead of us moving towards 65 per cent and beyond and towards a decarbonised world. We want to share our experience and are eager to learn from best practices from all over the world. SIEW brings together experts from all continents and serves as a great platform to facilitate exchange between champions of the industry.
About Dirk Biermann, Chief Officer Markets and System Operations, 50Hertz
Dirk Biermann, born in 1969, is a member of the management board of 50Hertz Transmission GmbH and holds the position Chief Officer Markets and System Operations since April 2012. Before he was appointed, he headed the Energy Management department in the company with responsibility for the energy business like market design, congestion management, ancillary services and renewables. After his PhD studies at RWTH Aachen, Dirk Biermann started his carrier at former VEAG in 1999. In 2002 he changed to Vattenfall Europe AG where he was appointed as a manager with the responsibility for grid strategy in 2004.
Dirk Biermann is a member of the supervisory boards of EEX in Leipzig and TSCNET in Munich and a member of the boards of Coreso and Elia Grid International (EGI) in Brussels, having subsidiaries in Dubai, Riyadh and Singapore.