Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040

An Indian electricity system with very high shares of solar photovoltaics seems to be a plausible future given the ever-falling solar photovoltaic (PV) costs, recent Indian auction prices, and governmental support schemes. However, the variability of solar PV electricity, i.e., the seasonal, daily,...

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Main Authors: Ahmad Murtaza Ershad, Robert Pietzcker, Falko Ueckerdt, Gunnar Luderer
Format: Article
Language:English
Published: MDPI AG 2020-05-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/13/9/2223
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author Ahmad Murtaza Ershad
Robert Pietzcker
Falko Ueckerdt
Gunnar Luderer
author_facet Ahmad Murtaza Ershad
Robert Pietzcker
Falko Ueckerdt
Gunnar Luderer
author_sort Ahmad Murtaza Ershad
collection DOAJ
description An Indian electricity system with very high shares of solar photovoltaics seems to be a plausible future given the ever-falling solar photovoltaic (PV) costs, recent Indian auction prices, and governmental support schemes. However, the variability of solar PV electricity, i.e., the seasonal, daily, and other weather-induced variations, could create an economic barrier. In this paper, we analyzed a strategy to overcome this barrier with demand-side management (DSM) by lending flexibility to the rapidly increasing electricity demand for air conditioning through either precooling or chilled water storage. With an open-source power sector model, we estimated the endogenous investments into and the hourly dispatching of these demand-side options for a broad range of potential PV shares in the Indian power system in 2040. We found that both options reduce the challenges of variability by shifting electricity demand from the evening peak to midday, thereby reducing the temporal mismatch of demand and solar PV supply profiles. This increases the economic value of solar PV, especially at shares above 40%, the level at which the economic value roughly doubles through demand flexibility. Consequently, DSM increases the competitive and cost-optimal solar PV generation share from 33–45% (without DSM) to ~45–60% (with DSM). These insights are transferable to most countries with high solar irradiation in warm climate zones, which amounts to a major share of future electricity demand. This suggests that technologies, which give flexibility to air conditioning demand, can be an important contribution toward enabling a solar-centered global electricity supply.
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spelling doaj.art-4b8ca41d7b8246c1bf23327ea10e1b7c2023-11-19T23:23:31ZengMDPI AGEnergies1996-10732020-05-01139222310.3390/en13092223Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040Ahmad Murtaza Ershad0Robert Pietzcker1Falko Ueckerdt2Gunnar Luderer3Potsdam Institute for Climate Impact Research, PO Box 601203, 14412 Potsdam, GermanyPotsdam Institute for Climate Impact Research, PO Box 601203, 14412 Potsdam, GermanyPotsdam Institute for Climate Impact Research, PO Box 601203, 14412 Potsdam, GermanyPotsdam Institute for Climate Impact Research, PO Box 601203, 14412 Potsdam, GermanyAn Indian electricity system with very high shares of solar photovoltaics seems to be a plausible future given the ever-falling solar photovoltaic (PV) costs, recent Indian auction prices, and governmental support schemes. However, the variability of solar PV electricity, i.e., the seasonal, daily, and other weather-induced variations, could create an economic barrier. In this paper, we analyzed a strategy to overcome this barrier with demand-side management (DSM) by lending flexibility to the rapidly increasing electricity demand for air conditioning through either precooling or chilled water storage. With an open-source power sector model, we estimated the endogenous investments into and the hourly dispatching of these demand-side options for a broad range of potential PV shares in the Indian power system in 2040. We found that both options reduce the challenges of variability by shifting electricity demand from the evening peak to midday, thereby reducing the temporal mismatch of demand and solar PV supply profiles. This increases the economic value of solar PV, especially at shares above 40%, the level at which the economic value roughly doubles through demand flexibility. Consequently, DSM increases the competitive and cost-optimal solar PV generation share from 33–45% (without DSM) to ~45–60% (with DSM). These insights are transferable to most countries with high solar irradiation in warm climate zones, which amounts to a major share of future electricity demand. This suggests that technologies, which give flexibility to air conditioning demand, can be an important contribution toward enabling a solar-centered global electricity supply.https://www.mdpi.com/1996-1073/13/9/2223renewable electricity integrationmarket valuewind and solar PVdemand-side managementair conditioningIndia
spellingShingle Ahmad Murtaza Ershad
Robert Pietzcker
Falko Ueckerdt
Gunnar Luderer
Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040
Energies
renewable electricity integration
market value
wind and solar PV
demand-side management
air conditioning
India
title Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040
title_full Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040
title_fullStr Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040
title_full_unstemmed Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040
title_short Managing Power Demand from Air Conditioning Benefits Solar PV in India Scenarios for 2040
title_sort managing power demand from air conditioning benefits solar pv in india scenarios for 2040
topic renewable electricity integration
market value
wind and solar PV
demand-side management
air conditioning
India
url https://www.mdpi.com/1996-1073/13/9/2223
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