Integrating large quantities of intermittent solar and wind energy at an accelerated pace means the energy system will have to become more flexible and policy-makers will have to ensure that the energy transition does not create disruptions. XFLEX HYDRO, and the demonstration that hydropower can provide additional flexibility, is a building block toward this goal.
XFLEX HYDRO is a European Union Horizon 2020 research and innovation project with the objective to show hydropower’s technical and strategic role in demonstrating how renewable-based generation can be achieved in a secure and reliable manner. Thanks to this project, the sector has gained a better understanding of the flexibility the EU hydropower fleet can provide to the electrical system and demonstrated how, using a set of innovative technologies, this flexibility potential can be optimized and enhanced.
These innovative hydroelectric technological solutions are:
- Variable speed units;
- Hydraulic short circuit;
- Hybridization with a battery energy storage system; and
- Smart Power Plant Supervisor (real-time optimization methodology)
The project puts hydropower at the forefront of innovation, strengthening the industry’s know-how, improving its technology export potential and facilitating job creation. The new report is designed to speak to a range of stakeholders and the information is clear, accessible and actionable. The technical part of this report provides key takeaways from the project and enables plant owners and energy experts to identify opportunities to introduce some of the findings in their plants.
In Section 4, the four technologies relevant to the European hydropower fleet are discussed (presented individually, as well as in six possible upgrade strategies). To facilitate the identification of the relevant combination of technologies, these upgrade strategies are classified under three categories of hydropower plants: reservoir storage, pumped storage and run of river.
Despite the results achieved and the technical benefits associated with the deployment of these innovative technologies, several barriers are limiting their wider adoption in the European context. The flexibility provision of the hydropower fleet will only be entirely optimized and used if dedicated energy policies are put in place, aimed at securing the availability of indigenous flexibility solutions over the next decades.
Through the dialogue carried out within the consortium’s partners and external energy experts, seven key recommendations have emerged:
Recognize and value hydro flexibility as an essential service to achieve a successful energy transition. As power systems are progressively losing the flexibility provided by non-renewable conventional energy sources, recognizing and valuing the growing necessity for flexibility services is crucial to ensure grid stability and security of supply over the next decades.
Remove regulatory barriers for unrestricted implementation and operation of hydro flexibility technologies. To unlock the full potential of existing hydro assets and introduce new technologies, it is essential to eliminate regulatory barriers that limit the adoption of flexibility upgrades or that create discrepancy in the procurement process of flexibility services.
Provide remuneration mechanisms enabling investment in flexibility. Existing electricity and ancillary services markets (when available) excel in ensuring that the service required is provided at minimal cost to consumers, but their short-term nature does not provide the long-term revenue visibility required to justify new investment in flexibility technology upgrades.
Facilitate cross-border collaboration for efficient exchange of flexibility services. Encouraging international collaboration among European countries is essential for the efficient exchange of hydro flexibility services and expertise. Countries can share resources and expertise, optimizing the use of hydro flexibility on a broader scale.
Streamline licensing renewals for optimized hydropower operations. Simplifying the licensing process and accelerating permitting procedures are vital for the operational stability of hydropower projects. This reduces uncertainties linked to license renewals and ownership transfers and provides a clear and predictable framework in which power companies can operate.
Conduct system-level analysis to anticipate and address future flexibility needs. To effectively address future challenges and make sure that electric power systems can deliver a safe energy transition, system-level analyses are essential. These can provide the long-term vision needed to identify and prepare for future flexibility challenges in the most technically efficient, secure and cost-effective way.
Promote support mechanisms for the modernization of aging hydropower infrastructure. Financial or tax mechanisms that support the modernization of aging infrastructure are essential to secure and enhance the benefits provided to society by these plants. These mechanisms should be focused on rewarding modernization projects that are introducing cutting edge technologies and leading in the adoption of cleaner and more flexible energy solutions.
The Hydropower Extending Power System Flexibility (XFLEX HYDRO) project has received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement No 857832.
