Valuing Flexibility: The case of an Integrated Gasification Combined Cycle Power Plant

In this paper we analyze the valuation of options stemming from the flexibility in an Integrated Gasification Combined Cycle (IGCC) Power Plant. First we use as a base case the opportunity to invest in a Natural Gas Combined Cycle (NGCC) Power Plant, deriving the optimal investment rule as a function of fuel price and the remaining life of the right to invest. Additionally, the analytical solution for a perpetual option is obtained. Second, the valuation of an operating IGCC Power Plant is studied, with switching costs between states and a choice of the best operation mode. The valuation of this plant serves as a base to obtain the value of the option to delay an investment of this type. Finally, we derive the value of an opportunity to invest either in a NGCC or IGCC Power Plant, that is, to choose between an inflexible and a flexible technology, respectively. Numerical computations involve the use of one- and two-dimensional binomial lattices that support a mean-reverting process for the fuel prices. Basic parameter values refer to an actual IGCC power plant currently in operation.

Influence of Training Set Selection in Artificial Neural Network-Based Propagation Path Loss Predictions

This paper analyzes the use of artificial neural networks (ANNs) for predicting the received power/path loss in both outdoor and indoor links. The approach followed has been a combined use of ANNs and ray-tracing, the latter allowing the identification and parameterization of the so-called dominant path. A complete description of the process for creating and training an ANN-based model is presented with special emphasis on the training process. More specifically, we will be discussing various techniques to arrive at valid predictions focusing on an optimum selection of the training set. A quantitative analysis based on results from two narrowband measurement campaigns, one outdoors and the other indoors, is also presented.

Sliding Mode Control Strategy for Wind Turbine Power Maximization

The efficiency of the wind power conversions systems can be greatly improved using an appropriate control algorithm. In this work, a sliding mode control for variable speed wind turbine that incorporates a doubly fed induction generator is described. The electrical system incorporates a wound rotor induction machine with back-to-back three phase power converter bridges between its rotor and the grid. In the presented design the so-called vector control theory is applied, in order to simplify the electrical equations. The proposed control scheme uses stator flux-oriented vector control for the rotor side converter bridge control and grid voltage vector control for the grid side converter bridge control. The stability analysis of the proposed sliding mode controller under disturbances and parameter uncertainties is provided using the Lyapunov stability theory. Finally simulated results show, on the one hand, that the proposed controller provides high-performance dynamic characteristics, and on the other hand, that this scheme is robust with respect to the uncertainties that usually appear in the real systems.

Design, Construction and Testing of a Hydraulic Power Take-Off for Wave Energy Converters

This paper presents the construction, mathematical modeling and testing of a scaled universal hydraulic Power Take-Off (PTO) device for Wave Energy Converters (WECs). A specific prototype and test bench were designed and built to carry out the tests. The results obtained from these tests were used to adjust an in-house mathematical model. The PTO was initially designed to be coupled to a scaled wave energy capture device with a low speed and high torque oscillating motion and high power fluctuations. Any Energy Capture Device (ECD) that fulfils these requirements can be coupled to this PTO, provided that its scale is adequately defined depending on the rated power of the full scale prototype. The initial calibration included estimation of the pressure drops in the different components, the pressurization time of the oil inside the hydraulic cylinders and the volumetric efficiency of the complete circuit. Since the overall efficiency measured during the tests ranged from 0.69 to 0.8 and the dynamic performance of the PTO was satisfactory, the results are really promising and it is believed that this solution might prove effective in real devices.

Modeling Innovative Power Take-Off Based on Double-Acting Hydraulic Cylinders Array for Wave Energy Conversion

One of the key systems of a Wave Energy Converter for extraction of wave energy is the Power Take-Off (PTO) device. This device transforms the mechanical energy of a moving body into electrical energy. This paper describes the model of an innovative PTO based on independently activated double-acting hydraulic cylinders array. The model has been developed using a simulation tool, based on a port-based approach to model hydraulics systems. The components and subsystems used in the model have been parameterized as real components and their values experimentally obtained from an existing prototype. In fact, the model takes into account most of the hydraulic losses of each component. The simulations show the flexibility to apply different restraining torques to the input movement depending on the geometrical configuration and the hydraulic cylinders on duty, easily modified by a control law. The combination of these two actions allows suitable flexibility to adapt the device to different sea states whilst optimizing the energy extraction. The model has been validated using a real test bench showing good correlations between simulation and experimental tests.

Valuation of Wind Energy Projects: A Real Options Approach

We address the valuation of an operating wind farm and the finite-lived option to invest in it under different reward/support schemes: a constant feed-in tariff, a premium on top of the electricity market price (either a fixed premium or a variable subsidy such as a renewable obligation certificate or ROC), and a transitory subsidy, among others. Futures contracts on electricity with ever longer maturities enable market-based valuations to be undertaken. The model considers up to three sources of uncertainty: the electricity price, the level of wind generation, and the certificate (ROC) price where appropriate. When analytical solutions are lacking, we resort to a trinomial lattice combined with Monte Carlo simulation; we also use a two-dimensional binomial lattice when uncertainty in the ROC price is considered. Our data set refers to the UK. The numerical results show the impact of several factors involved in the decision to invest: the subsidy per MWh generated, the initial lump-sum subsidy, the maturity of the investment option, and electricity price volatility. Different combinations of variables can help bring forward investments in wind generation. One-off policies, e.g., a transitory initial subsidy, seem to have a stronger effect than a fixed premium per MWh produced.

Strategies for Power Line Communications Smart Metering Network Deployment

Smart Grids are becoming a reality all over the world. Nowadays, the research efforts for the introduction and deployment of these grids are mainly focused on the development of the field of Smart Metering. This emerging application requires the use of technologies to access the significant number of points of supply (PoS) existing in the grid, covering the Low Voltage (LV) segment with the lowest possible costs. Power Line Communications (PLC) have been extensively used in electricity grids for a variety of purposes and, of late, have been the focus of renewed interest. PLC are really well suited for quick and inexpensive pervasive deployments. However, no LV grid is the same in any electricity company (utility), and the particularities of each grid evolution, architecture, circumstances and materials, makes it a challenge to deploy Smart Metering networks with PLC technologies, with the Smart Grid as an ultimate goal. This paper covers the evolution of Smart Metering networks, together with the evolution of PLC technologies until both worlds have converged to project PLC-enabled Smart Metering networks towards Smart Grid. This paper develops guidelines over a set of strategic aspects of PLC Smart Metering network deployment based on the knowledge gathered on real field; and introduces the future challenges of these networks in their evolution towards the Smart Grid.