PV based electrification of the economy: Designing & optimising PV systems supporting industrial electrification and promoting participation in electricity markets (EUPI-PV Partnership)

This Destination includes activities targeting a sustainable, secure and competitive energy supply. In line with the scope of cluster 5, this includes activities in the areas of renewable energy; energy system, grids and storage; as well as Carbon Capture, Utilisation and Storage (CCUS).

This Destination contributes directly to the Strategic Plan’s Key Strategic Orientations ‘Green transition’, ‘Digital transition’ and ‘A more resilient, competitive, inclusive and democratic Europe’.

In line with the Strategic Plan, the overall expected impact of this Destination is to contribute to the ‘Ensuring more sustainable, secure and competitive energy supply through solutions for smart energy systems based on renewable energy solutions’.

This destination contributes to the activities of the Strategic Energy Technology Plan (SET Plan) and its implementation working groups.

The main impacts to be generated by topics under this Destination are:

Renewable energy

1. Energy producers have access to efficient and competitive European renewable energy and renewable fuel technologies with a solid knowledge base and are able to deploy them to enhance the EU’s energy security and reach its climate neutrality objectives, in a sustainable way in environmental (e.g., biodiversity, multiple uses of land and water, natural resources, pollution) and socioeconomic terms, and in line with the Sustainable Development Goals.
2. Technology providers have access to European, competitive, resilient, reliable, sustainable, and affordable value chains of renewable energy and renewable fuel technologies including emerging ones, and with strong export potential to supply both the EU internal and global markets. They benefit also from circular renewable energy technologies that are safe and sustainable by design with reduced and diversified external dependence on critical raw materials^[1].
3. Economic sectors benefit from better integration of renewable energy and renewable fuel-based solutions that are, among others, competitive, cost-effective, efficient, flexible, reliable, and sustainable. Such integration is facilitated through digitalisation and integration of artificial intelligence of renewable energy technologies that provide network stability and reliability.
4. European industries benefit from a reinforced export potential of renewable energy and renewable fuel technologies, also through international partnerships, and become more competitive in innovative renewable energy technologies in Europe and globally.
5. European researchers benefit from a stronger community and from a reinforced scientific basis on renewable energy and renewable fuel technologies including emerging ones, also through international collaborations.
6. European citizens have access to an energy market that is fair and equitable, more resilient, uses all different types of local renewable energy resources, and is less dependent on fossil fuels imports. Citizens experience less fuel and energy poverty, and also benefit from new employment and upskilling opportunities. Local communities benefit from a more decentralized, affordable, and secure energy system and from multiple uses of land and water.

Energy systems, grids and storage

1. R&I actions will support the just digital and green transformation of the energy system through advanced solutions for accelerating the energy systems integration and decarbonisation. The developed clean, sustainable solutions will contribute to making the energy system work better for actors and supply more reliable, resilient and secure energy – even under increasingly more frequent extreme climate events.
2. The solutions developed will contribute to increase flexibility and grid hosting capacity for renewables through optimizing cross sector integration and grid scale storage as well as cover off-grid situations. They will improve the preparedness of the electricity system to support the EU's binding target for 2030 of minimum of 42.5% renewables in the gross final energy consumption (with the aspiration to reach 45%), and full decarbonisation by 2050. They will enable further electrification of demand and will enhance the competitiveness of the European value chain, reduce pressure on resources (also by making technologies ‘circular by design’) and decrease dependencies. Such solutions would also enable a better EU resilience to climate risks.
3. The solutions will improve consumer awareness and engagement in the energy transition, via innovative offers and services (e.g. demand response, energy communities) and will target different types of consumers, including “hard to reach” population groups (such as energy poor or low-income households). This will result in increased trust in, and uptake of the new products and services entering the energy system.

Carbon capture, use and storage (CCUS) and carbon dioxide removal (CDR)

1. Accelerated deployment of carbon capture, use and storage (CCUS) as a CO2 emission mitigation option in electricity generation and/or in industry applications, as well as carbon dioxide removal for negative emissions.

Legal entities established in China are not eligible to participate in both Research and Innovation Actions (RIAs) and Innovation Actions (IAs) falling under this destination. For additional information please see “Restrictions on the participation of legal entities established in China” found in General Annex B of the General Annexes.

[1] For an example of a methodology for the assessment of sustainability, circularity and contribution to EU resilience and technological autonomy of clean energy technology in the R&I pipeline, please see Study on circular approaches for a sustainable and affordable clean energy transition

Expected Outcome:

Large PV systems such as utility scale PV are evolving towards higher voltage architecture (>=3kV) with the objective to minimize losses and improve system efficiency at lower costs. The intention is to integrate also storage into such (hybrid) PV systems offering flexibility. It is consequently essential to build a blueprint for the implementation of high voltage large PV systems and the development of Direct Current (DC) networks around strategic end users for high voltage demand (industrial sites, servers, electric vehicle charging stations…). Understanding the factors that influence the performance and economics of these system architectures will help system planners evaluate the potential benefits of such hybrid resources that could support an increasing future industrial electrification. Another crucial challenge to address in ensuring the continued growth of new investments in solar PV, is the increasing occurrence of zero or negative prices in the electricity market, which dramatically hurt the profitability of operating solar PV assets. To tackle this challenge, PV participation to ancillary services is a way forward, which would reduce significantly system operating costs and PV curtailment and improve system reliability and PV profitability. The coupling/pooling with other generation assets or storage/demand assets is also to be considered.

Project results are expected to contribute to all of the following expected outcomes as indicated for the proposed scope (high voltage DC PV systems or PV participation in electricity markets):

Scope 1: High-voltage DC PV systems:

1. Highly efficient PV systems, optimal utilisation of generated PV electricity, energy savings;
2. Decreased levelised cost of electricity (LCOE) and affordable electricity for industrial users.

Scope 2: PV participation in electricity markets:

1. Increased social profitability of PV by participation to ancillary services;
2. Energy efficient, cost competitive and flexible contribution of PV systems to the energy markets.

All proposals are expected to support the execution of the solar energy joint research and innovation agenda.

Scope:

Proposals are expected to cover at least one of the following scopes:

Scope 1: High-voltage DC PV systems:

• Design higher voltage system architectures and evaluate the efficiency benefit;
• Develop the blueprint for an AC (Alternating Current)/DC hybrid solution for managing end user loads, achieving high levels of efficiency;
• Demonstrate a high voltage >3kV operating in DC grids for industrial installations hybrid system;
• Investigate the impact of higher voltage on PV modules.

Scope 2: PV participation in electricity markets:

• Demonstrate integrated management of PV generators for dynamic and/or nodal pricing;
• Pool PV with other consumption/production assets to participate in balancing mechanisms; assess the viability of these systems and demonstrate business models and financing schemes;
• Demonstrate reliability, procurement driven risk mitigation and better system availability through digitalization.

Whenever the expected exploitation of project results entails developing, creating, manufacturing and marketing a product or process, or in creating and providing a service, the plan for the exploitation and dissemination of results must include a strategy for such exploitation as well as a strong business case and sound exploitation strategy. The exploitation plan should include preliminary plans for scalability, commercialisation, and deployment (feasibility study, business plan) indicating the possible funding sources to be potentially used (in particular the Innovation Fund).

This topic implements the co-programmed European Partnership for Innovation in Photovoltaics (EUPI-PV). As such, projects resulting from this topic will be expected to report on the results to the European Partnership for Innovation in Photovoltaics (EUPI-PV) in support of the monitoring of its KPIs.

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