Power system stability in the transition to a low carbon grid: A techno‐economic perspective on challenges and opportunities

Abstract Increasing power system stability challenges are being witnessed worldwide, while transitioning toward low‐carbon grids with a high‐share of power electronic converter (PEC)‐interfaced renewable energy sources (RESs) and distributed energy resources (DERs). Concurrently, new technologies and operational strategies are being implemented or proposed to tackle these challenges. Since electricity grids are deregulated in many jurisdictions, such technologies need to be integrated within a market framework, which is often a challenge in itself due to inevitable regulatory delays in updating grid codes and market rules. It is also highly desirable to ensure that an economically feasible optimal technology mix is integrated in the power system, without imposing additional burdens on electricity consumers. This article provides a comprehensive overview of emerging power system stability challenges posed by PEC‐interfaced RES and DER, particularly related to low inertia and low system strength conditions, while also introducing new technologies that can help tackle these challenges and discussing the need for suitable techno‐economic considerations to integrate them into system and market operation. As a key point, the importance of recognizing the complexity of system services to guarantee stability in low‐carbon grids is emphasized, along with the need to carefully integrate new grid codes and market mechanisms in order to exploit the full benefits of emerging technologies in the transition toward ultra‐low carbon futures. This article is categorized under: Energy Systems Economics > Economics and Policy Energy Systems Analysis > Systems and Infrastructure Energy and Development > Systems and Infrastructure