Navigant Research Blog

The FACTS about Distributed Wind and Renewable Generation

James McCray — March 4, 2014

Since the mid-1990s, during my annual pilgrimage to DistribuTECH, I’ve always picked up a new emerging trend or a newly released technology.  This year’s show in San Antonio, Texas was no different.  I went to Texas to learn more about flexible AC transmission system (FACTS) technologies and had the opportunity to talk to many of the major vendors and some interesting new companies.  My focus started with traditional FACTS technologies (i.e., series compensation [SCs], static VAR compensators [SVCs], and static synchronous compensators [STATCOMs]).  These are almost always complex engineered systems designed to correct voltage drops in long-distance, high-voltage AC lines to perform power factor correction in areas where generation stations have been retired.

Smaller-scale SVC and STATCOM technologies were typically used to correct voltage sag, power factor, and flicker at large industrial sites such as steel mills, large-scale mining, crushers, pumps, and other inductive loads.  At DistribuTECH, vendors like S&C Electric, ABB, and AMSC talked about the use of D-SVCs and D-STATCOMs to stabilize the megawatts produced by distributed renewable sources on the edge of the grid.  These new, downsized versions of transmission grid-scale SVC and STATCOM technologies are now being modularized in familiar 8’ x 40’ containers that can be delivered quickly for any application, sometimes coupled with modular battery storage, to smooth out the intermittency of distributed renewables.

Small and Scattered

This move to smaller-scale distributed FACTS solutions has other implications as well: they can be added quickly to both transmission and distribution substations, with minimal space requirements. They can also be deployed near the edge of the grid at distribution substations or even on local feeders where renewables and electric vehicle charging installations are stressing the local grid in ways that were not imagined when the distribution grid was originally installed.  Startup companies like Varentec Inc. are now introducing pole-mounted mini-FACTS systems.  These systems are wired into the transformer with wireless communications, enabling edge-of-grid corrections in near real-time, far beyond the local centrally controlled substation.

When I started my latest research on FACTS technologies, I imagined that they would be limited to the big iron at thousands of high-voltage transmission system substations where SC, SVC, and STATCOM technologies have been traditionally used.  It was eye-opening to see the emergence of FACTS technologies deployed on the distribution-level grid, where they are opening significant new markets for both traditional and emerging FACTS vendors.  Transmission system designs and technologies are covered in detail in Navigant Research’s report, High-Voltage Direct Current Transmission Systems.  In addition, recent Navigant Research reports, such as Emerging Wind Markets Assessment and Distributed Solar Energy Generation, cover the rapid adoption of distributed renewables in all regions of the world.  Over the next year, our Smart Utilities team will release a series of in-depth reports on the high-voltage transmission grid, starting with my upcoming report, Flexible AC Transmission Systems, which is expected to be released in 2Q 2014.

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