Self-Test For Chapter 3 - Attempt Review - Policy Frameworks For Renewable Energy Power Generation

4/9/23, 10:38 PM Self-test for chapter 3 : Attempt review
Dashboard / My courses / Policy frameworks for renewable energy power generation / 3 / Self-test for chapter 3
Started on Sunday, 9 April 2023, 10:18 PM

State Finished
Completed on Sunday, 9 April 2023, 10:37 PM
Time taken 18 mins 46 secs
Marks 14.13/16.00
Grade 88.33 out of 100.00
https://renewables-online.de/mod/quiz/review.php?attempt=450450&cmid=34061 1/15
Question 1
Partially correct
Mark 0.33 out of 1.00
Recent cost trends
The cost-competitiveness and performance of solar panels have both improved tremendously in recent years. Based on the curves’
direction and Y-axis, match the correct title with each of the three graphs below.
Total installed cost Levelised cost of electricity
Your answer is partially correct.
You have correctly selected 1.

The correct answer is
Question 2
Partially correct
Pairing electricity storage and solar PV
The role of electricity storage has gained particular prominence in recent years when looking at the falling costs of solar PV. Increasingly,
storage has been used to increase local consumption  for residential and commercial solar PV installations (notably in
Germany). By storing any excess PV energy until it is needed, batteries would enable, for instance, the “time-shifting” of local electricity
production from day-time  , peaking at noon, to make it available on demand in the evening  . As a result, stationary
batteries can effectively lower  the amount of power obtained from the grid, resulting in a decrease  of the
electricity bill.
Your answer is partially correct.
You have correctly selected 4.

The correct answer is:
Pairing electricity storage and solar PV
The role of electricity storage has gained particular prominence in recent years when looking at the falling costs of solar PV. Increasingly,
storage has been used to increase local [self‑consumption] for residential and commercial solar PV installations (notably in Germany). By
storing any excess PV energy until it is needed, batteries would enable, for instance, the “time-shifting” of local electricity production
from [day‑time], peaking at noon, to make it available on demand in [the evening]. As a result, stationary batteries can effectively [lower]
the amount of power obtained from the grid, resulting in a [decrease] of the electricity bill.
Question 3
Correct
Grid parity
Grid parity refers to the point in time when the LCOE of solar PV or other RE technologies is less than or equal to the costs of retail
electricity in a given country or region. Drag and drop the missing words to the appropriate location.
Grid electricity price

Grid parity
PV electricity cost (LCOE)
Your answer is correct.
Question 4
Correct
Self-Consumption
As the cost of residential rooftop PV continues to decrease, households worldwide are increasingly consuming the electricity they
produce, and feed the excess to the grid. Drag and drop the missing words to the appropriate graph area.
Consumption Excess fed into the grid
Production Self-consumption

Question 5
Correct
Grid Parity and self-consumption
List in the correct order the different stages in the development of self-consumption from solar PV (assuming no government
intervention).
1. The LCOE of solar PV decreases over time while the retail electricity price rises 
2. Solar PV reaches grid parity 
3. It becomes rational for households to invest in self‑consumption 
4. Storage technologies enable households to consume a greater amount of the electricity they produce. 

The decline in the cost of solar does not always precede the increase of retail prices. Either answer is valid for 1 and 2!
Government programs such as net-metering, in combination with the removal of fossil fuel subsidies, have encourage self-consumption
at a relatively early stage. As batteries are becoming more attractive, this effectively increases self-consumption.

Grid Parity and self-consumption
List in the correct order the different stages in the development of self-consumption from solar PV (assuming no government
intervention).
1. [The LCOE of solar PV decreases over time while the retail electricity price rises]
2. [Solar PV reaches grid parity]

3. [It becomes rational for households to invest in self‑consumption ]
4. [Storage technologies enable households to consume a greater amount of the electricity they produce. ]
Question 6
Correct
Basic net-metering illustration
Net metering policies allow end users to offset retail electricity purchases using output from on-site distributed generation systems.
Please drag and drop the number of the text to the corresponding place on the image.
1. Sunlight falls on high capacity solar panels during daylight hours. The solar panel converts the sun’s energy into direct current (DC)
electricity.
2. The inverter converts the direct current into alternating current (AC) electricity.
3. When the solar energy system produces more electricity than is needed during peak sun hours, excess electricity is automatically sent
to the utility company and the electric meter actually runs backwards.
Question 7
Correct
The rationale behind net-metering
Net-metering programs allow customers to produce electricity locally to offset onsite consumption. When they generate more than they
need, they get  net metering credits. When they need more than they generate, they can use  net-metering credits to
lower their power bills  . This billing arrangement has made it significantly more affordable  for households to invest in
decentralised energy solutions. As a consequence, more and more  countries implement net-metering policies around the
globe.

The rationale behind net-metering
Net-metering programs allow customers to produce electricity locally to offset onsite consumption. When they generate more than they
need, they [get] net metering credits. When they need more than they generate, they can [use] net-metering credits to [lower their power
bills]. This billing arrangement has made it significantly [more affordable] for households to invest in decentralised energy solutions. As a
consequence, [more and more] countries implement net-metering policies around the globe.
Question 8
Correct
Rationale of program size caps
What are the main reasons for defining limits on the size of net-metering programs?
Select one or more:

To integrate renewable energy sources more easily into the grid  By placing a program cap, policymakers can
coordinate the roll-out of the policy with grid
expansion
To reduce investment risk
To support cost-competitive technologies
To protect utilities from declining revenues  Yes, placing a limit on program size
facilitates cost-calculations for utilities

Net-metering program caps essentially help protect utilities from rising shares of distributed energy, while also enabling better
coordination with grid management activities.
The correct answers are: To protect utilities from declining revenues, To integrate renewable energy sources more easily into the grid
Question 9
Correct
Design options for program and project size caps
Program and project size caps are an important tool to ensure that the maximum amount of renewable energy can be fed to the grid
without putting system stability at risk. Please match the various options:
Defined as a percentage of total peak demand (e.g. 5% of peak demand)
Defined as a capacity limit (e.g. 500 MW)
Limit on installed capacity per plant (e.g. 10 kW)

Question 10
Correct
Roll-over options
Please select all correct statements about net-metering roll-over period design.
Select one or more:

Regardless of the roll-over period, it makes sense to invest in a system as large as possible
Shorter roll-over periods require the use of advanced metering infrastructure  True: the installation of smart meters is
important for shorter periods
The roll-over period can be set at any time length (monthly, annually, bi-annually) decided by policymakers.

Net metering policies generally limit the period of time over which power can be rolled over before it is netted. The roll-over period
typically depends on the billing frequency. For example, in the case of annual meter readings the only option is an annual roll-over. In
contrast, shorter roll-over periods usually require the use of smart meters. The shorter the roll-over period, the greater the incentive for
customers to size their systems to match consumption.
The correct answer is: Shorter roll-over periods require the use of advanced metering infrastructure
Question 11
Correct
Criticism of cash payments
While cash payments for non-utilised  credits may be a significant incentive for customers to participate in net-metering
schemes, this idea is often opposed by utilities  . Indeed, homeowners would basically become
independent power producers  without any of the associated constraints which normal utilities have to comply with. It would
also increase the cost of the program to utilities, whose revenues  could decline significantly.

Criticism of cash payments
While cash payments for [non‑utilised] credits may be a significant incentive for customers to participate in net-metering schemes, this
idea is often opposed by [utilities]. Indeed, homeowners would basically become [independent power producers] without any of the
associated constraints which normal utilities have to comply with. It would also increase the cost of the program to utilities, whose
[revenues] could decline significantly.
Question 12
Correct
Compensation for excess electricity
How do legislators determine payment levels for excess electricity?
Select one or more:

Wholesale price  Using the wholesale price is
also an option.
Combinations (e.g. fixed compensation between the wholesale and  In some jurisdictions, net excess generation is credited
retail prices) or purchased at a rate that is below the retail rate.
Value of solar
Retail price  The retail price is often used as a benchmark

for determining payment levels.
Levelised cost of electricity
While cash payments for excess electricity are relatively rare, it never exceeds the retail price.
The correct answers are: Retail price, Wholesale price, Combinations (e.g. fixed compensation between the wholesale and retail prices)
Question 13
Correct
Changes to California’s Net Metering Scheme
What were the main reforms made to California’s net-metering scheme?
Select one or more:

Introduction of new fees (interconnection fee, non-bypassable charges)  Yes, new fees were introduced to help cover the
costs of grid maintenance and expansion
Project size cap
Requirement to switch to time-of-use rates  Time-of-use rates pushes for greater

optimisation of solar resources
Cash payment for excess electricity
The correct answers are: Introduction of new fees (interconnection fee, non-bypassable charges), Requirement to switch to time-of-use
rates
Question 14
Correct
Mitigating investment risks for commercial customers
While net-metering programs can effectively de-risk  investment in renewable energy sources, customers, in the commercial
and industrial segments, remain vulnerable to any changes either in their own electricity demand  or in regulations pertaining
to rate design, tax levies, and other fees. Therefore, several jurisdictions offer a low but stable price for any excess electricity that is fed
into the grid. This scheme, often referred to as net-FiT  , can serve as a fall-back option (in case of changes to onsite demand or
rate design), which can make larger projects that rely on debt-financing  more bankable.

Mitigating investment risks for commercial customers
While net-metering programs can effectively [de‑risk] investment in renewable energy sources, customers, in the commercial and
industrial segments, remain vulnerable to any changes either in their own electricity [demand] or in regulations pertaining to rate design,
tax levies, and other fees. Therefore, several jurisdictions offer a low but stable price for any excess electricity that is fed into the grid. This
scheme, often referred to as [net‑FiT], can serve as a fall-back option (in case of changes to onsite demand or rate design), which can
make larger projects that rely on [debt‑financing] more bankable.
Question 15
Correct
Rate design options
Thanks to technological advancements and notably the deployment of smart meters, new rate design options are available to
policymakers. Please drag and drop the text to the corresponding place on the image.
Volumetric rate Time-of-Use
Fixed rate

Question 16
Incorrect
Characteristics of fixed charges
Fixed charges are….
Select one or more:

Only possible if advanced metering infrastructure (i.e. smart meters) is  No, fixed charges do not require any smart
deployed meters or other connected infrastructure
A type of smart rate design
A potential incentive for customers to go off-grid
A way for utilities to recover the fixed costs related to infrastructure  Yes. Fixed charges are a per kW fee which
development funds grid maintenance and expansion
Your answer is incorrect.

Fixed charges are one of the traditional electricity rates in use. They provide a straightforward payback method for infrastructure-related
spending. However, they are not well adapted to rising shares of self-consumption.
The correct answers are: A way for utilities to recover the fixed costs related to infrastructure development, A potential incentive for
customers to go off-grid
◄ Video: Risks of self-consumption policies
4. Feed-in tariffs for distributed generation and large-scale projects ►

Self-Test For Chapter 3 - Attempt Review - Policy Frameworks For Renewable Energy Power Generation

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4/9/23, 10:38 PM Self-test for chapter 3 : Attempt review

Started on Sunday, 9 April 2023, 10:18 PM

Mark 0.33 out of 1.00

Recent cost trends

Total installed cost Levelised cost of electricity

Your answer is partially correct.

You have correctly selected 1.

Mark 0.80 out of 1.00

Pairing electricity storage and solar PV

Your answer is partially correct.

You have correctly selected 4.

Mark 1.00 out of 1.00

Grid electricity price

PV electricity cost (LCOE)

Your answer is correct.

Mark 1.00 out of 1.00

Consumption Excess fed into the grid

Your answer is correct.

Mark 1.00 out of 1.00

Grid Parity and self-consumption

2. Solar PV reaches grid parity 

3. It becomes rational for households to invest in self‑consumption 

Your answer is correct.

The correct answer is:

2. [Solar PV reaches grid parity]

Mark 1.00 out of 1.00

Basic net-metering illustration

Your answer is correct.

Mark 1.00 out of 1.00

The rationale behind net-metering

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Rationale of program size caps

Select one or more:

To reduce investment risk

To support cost-competitive technologies

Your answer is correct.

Mark 1.00 out of 1.00

Design options for program and project size caps

Defined as a percentage of total peak demand (e.g. 5% of peak demand)

Defined as a capacity limit (e.g. 500 MW)

Limit on installed capacity per plant (e.g. 10 kW)

Your answer is correct.

Mark 1.00 out of 1.00

Select one or more:

Your answer is correct.

Mark 1.00 out of 1.00

Criticism of cash payments

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Compensation for excess electricity

How do legislators determine payment levels for excess electricity?

Select one or more:

Retail price  The retail price is often used as a benchmark

Levelised cost of electricity

Your answer is correct.

Mark 1.00 out of 1.00

Changes to California’s Net Metering Scheme

What were the main reforms made to California’s net-metering scheme?

Select one or more:

Project size cap