ENTSOG Gas Regional Investment Plan South 2017 - Main Report

In the South Region, the combined cycle gas turbines (CCGTs) are playing an important role as a support in the development of renewable energy production. Intermittency and unpredictability of renewable energy sources like wind require a flexible back-up. CCGTs can provide efficient flexibility and therefore makes the CCGT an enabler to introduce the development of renewable energies. Nevertheless, gas for power generation is in competition with other sources of electricity, and the role of gas in electricity generation can vary according to the hydrologic regime, the gas prices (compared to other sources of power and flexibility, such as coal), the electricity demand and prices, and political decisions (price of CO ² permits, subsidies on renewable energy, etc.). The yearly modulation factor is defined as the daily average gas demand divided by the daily peak demand. A high yearly modulation factor means demand is relatively uniform, even in peak situation. A low yearly modulation factor shows that a high demand is set; to service that peak demand, capacity is sitting idle for long periods. As it can be seen in Figure 3.10, France’s total yearly modulation factor is lower compared to Portugal and Spain. This is mainly due to the seasonal modulation in France that is much less pronounced in Portugal and Spain. To cope with this sea- sonal modulation, France has developed important underground storage facilities.

Yearly Modulation Factor (2016)

1.0 0.9 0.8 0.5 0.7 0.6 0.3 0.4 0.2 0.1

Yearly Modulation Factor (2015) Yearly Modulation Factor (2016)

Yearly Modulation Factor (2016)

1.0 0.9 0.8 1.0 0.7 0.6 0.9 0.8 0.5 0.7 0.6 0.3 0.4 0.5 0.2 0.1 0.3 0.4 0.2 0.1

1.0 0.9 0.8 0.5 0.7 0.6 0.3 0.4 0.2 0.1

0

0 0

0

France

France Portugal

Spain

France France

Portugal Portugal

Spain Spain

Portugal

Spain

Residential & Commercial & Industrial & others

Residential & Commercial & Industrial & others Residential & Commercial & Industrial & others

Residential & Commercial & Industrial & others

Power Generation

Total demand

Power Generation Power Generation

Total demand Total demand

Power Generation

Total demand

Figure 3.10: Yearly modulation factor for Final Demand (Residential & Commercial & Industrial & others), Power Generation demand and Total Demand, for France, Portugal and Spain (Source: ENTSOG TYNDP 2017 data, own elaboration)

%

% of each Country's Peak Demand over Peak Demand of the South Region (2016)

100

80

60

62%

40

33%

20

5%

0

France

Portugal

Spain

Figure 3.11: Share of each country (France, Portugal and Spain) in the peak demand of the South Region (Source: ENTSOG TYNDP 2017 data, own elaboration)

Gas Regional Investment Plan of the South Region 2017 | 29