Modeling the impact of variable renewable energy sources penetration on supply-demand balance : Analysis of France from 2021 to 2025

Abstract: France is planning a strong development of solar photovoltaics (PV) and wind power in the medium term disrupting the power system. This Master Thesis analyzes the impacts of variable renewable energy production on the supply-demand balance from 2021 to 2025 in France. The model used relies on a dynamic programming method. The analysis is based on the assessment of indicators such as price signals, margins, loss of load duration (LOLD), expected energy not served (EENS) and nuclear drop stop that characterize the supply-demand balance and the security of supply of the electricity system. Wind power and PV are two very different technologies. Their load factor is very sizeable as it characterize their seasonality, variability and predictability and has an impact on all medium-term indicators. Wind power and PV have low marginal costs and their production is seasonal and in anti-phase. With new installed capacity, their added production in the supply-demand balance will substitute first the imports from the interconnections until saturation and then nuclear and thermal power plant production. Prices decrease with the same seasonality as the production and need to be considered when establishing the nuclear planning for the years to come. In addition a re-optimization of hydro power is observed. In terms of security of supply, wind power is more efficient than PV when assessing the reduction of LOLD but both are far from the performance of combined cycle gas turbines (CCGT). Lastly, the lack of nuclear production opportunities increases considerably more with PV due to a very localised production during the day which coincides in summer with periods of low consumption. Wind power and PV are two distinct technologies and should not be put in the same category when assessing their impact on the power system.