Comparison of electricity generation costs

The economical competitiveness of various power plant alternatives is compared. The comparison comprises merely electricity producing power plants. Combined heat and power (CHP) producing power will cover part of the future power deficit in Finland, but also condensing power plants for base load production will be needed. The following types of power plants are studied: nuclear power plant, combined cycle gas turbine plant, coal-fired condensing power plant, peat-fired condensing power plant, wood-fired condensing power plant and wind power plant. The calculations are carried out by using the annuity method with a real interest rate of 5 % per annum and with a fixed price level as of January 2008. With the annual peak load utilization time of 8000 hours (corresponding to a load factor of 91,3 %) the production costs would be for nuclear electricity 35,0 €/MWh, for gas based electricity 59,2 €/MWh and for coal based electricity 64,4 €/MWh, when using a price of 23 €/tonCO2 for the carbon dioxide emission trading. Without emission trading the production cost of gas electricity is 51,2 €/MWh and that of coal electricity 45,7 €/MWh and nuclear remains the same (35,0 €/MWh) In order to study the impact of changes in the input data, a sensitivity analysis has been carried out. It reveals that the advantage of the nuclear power is quite clear. E.g. the nuclear electricity is rather insensitive to the changes of nuclear fuel price, whereas for natural gas alternative the rising trend of gas price causes the greatest risk. Furthermore, increase of emission trading price improves the competitiveness of the nuclear alternative. The competitiveness and payback of the nuclear power investment is studied also as such by using various electricity market prices for determining the revenues generated by the investment. The profitability of the investment is excellent, if the market price of electricity is 50 €/MWh or more.

Investigation of factors driving the costs of operating the 2020 Irish power system with large-scale wind generation

The main goal of this work is to determine the true cost incurred by the Republic of Ireland and Northern Ireland in order to meet their EU renewable electricity targets. The primary all-island of Ireland policy goal is that 40% of electricity will come from renewable sources in 2020. From this it is expected that wind generation on the Irish electricity system will be in the region of 32-37% of total generation. This leads to issues resulting from wind energy being a non-synchronous, unpredictable and variable source of energy use on a scale never seen before for a single synchronous system. If changes are not made to traditional operational practices, the efficient running of the electricity system will be directly affected by these issues in the coming years. Using models of the electricity system for the all-island grid of Ireland, the effects of high wind energy penetration expected to be present in 2020 are examined. These models were developed using a unit commitment, economic dispatch tool called PLEXOS which allows for a detailed representation of the electricity system to be achieved down to individual generator level. These models replicate the true running of the electricity system through use of day-ahead scheduling and semi-relaxed use of these schedules that reflects the Transmission System Operator's of real time decision making on dispatch. In addition, it carefully considers other non-wind priority dispatch generation technologies that have an effect on the overall system. In the models developed, three main issues associated with wind energy integration were selected to be examined in detail to determine the sensitivity of assumptions presented in other studies. These three issues include wind energy's non-synchronous nature, its variability and spatial correlation, and its unpredictability. This leads to an examination of the effects in three areas: the need for system operation constraints required for system security; different onshore to offshore ratios of installed wind energy; and the degrees of accuracy in wind energy forecasting. Each of these areas directly impact the way in which the electricity system is run as they address each of the three issues associated with wind energy stated above, respectively. It is shown that assumptions in these three areas have a large effect on the results in terms of total generation costs, wind curtailment and generator technology type dispatch. In particular accounting for these issues has resulted in wind curtailment being predicted in much larger quantities than had been previously reported. This would have a large effect on wind energy companies because it is already a very low profit margin industry. Results from this work have shown that the relaxation of system operation constraints is crucial to the economic running of the electricity system with large improvements shown in the reduction of wind curtailment and system generation costs. There are clear benefits in having a proportion of the wind installed offshore in Ireland which would help to reduce variability of wind energy generation on the system and therefore reduce wind curtailment. With envisaged future improvements in day-ahead wind forecasting from 8% to 4% mean absolute error, there are potential reductions in wind curtailment system costs and open cycle gas turbine usage. This work illustrates the consequences of assumptions in the areas of system operation constraints, onshore/offshore installed wind capacities and accuracy in wind forecasting to better inform the true costs associated with running Ireland's changing electricity system as it continues to decarbonise into the near future. This work also proposes to illustrate, through the use of Ireland as a case study, the effects that will become ever more prevalent in other synchronous systems as they pursue a path of increasing renewable energy generation.

A nonlinear model for the long-term hydro-thermal generation scheduling problem over multiple areas with transmission constraints

This paper presents a nonlinear model with individual representation of plants for the centralized long-term hydrothermal scheduling problem over multiple areas. In addition to common aspects of long-term scheduling, this model takes transmission constraints into account. The ability to optimize hydropower exchange among multiple areas is important because it enables further minimization of complementary thermal generation costs. Also, by considering transmission constraints for long-term scheduling, a more precise coupling with shorter horizon schedules can be expected. This is an important characteristic from both operational and economic viewpoints. The proposed model is solved by a sequential quadratic programming approach in the form of a prototype system for different case studies. An analysis of the benefits provided by the model is also presented. ©2009 IEEE.

System operational costs reduction with non-conventional reactive power sources

Wind energy installations are increasing in power systems worldwide and wind generation capacity tends to be located some distance from load centers. A conflict may arise at times of high wind generation when it becomes necessary to curtail wind energy in order to maintain conventional generators on-line for the provision of voltage control support at load centers. Using the island of Ireland as a case study and presenting commercially available reactive power support devices as possible solutions to the voltage control problems in urban areas, this paper explores the reduction in total generation costs resulting from the relaxation of the operational constraints requiring conventional generators to be kept on-line near load centers for reactive power support. The paper shows that by 2020 there will be possible savings of 87€m per annum and a reduction in wind curtailment of more than a percentage point if measures are taken to relax these constraints.

Is the electric vehicle a solution for the wind power integration in the portuguese power system?

The integration of Plug-in electric vehicles in the transportation sector has a great potential to reduce oil dependency, the GHG emissions and to contribute for the integration of renewable sources into the electricity generation mix. Portugal has a high share of wind energy, and curtailment may occur, especially during the off-peak hours with high levels of hydro generation. In this context, the electric vehicles, seen as a distributed storage system, can help to reduce the potential wind curtailments and, therefore, increase the integration of wind power into the power system. In order to assess the energy and environmental benefits of this integration, a methodology based on a unit commitment and economic dispatch is adapted and implemented. From this methodology, the thermal generation costs, the CO2 emissions and the potential wind generation curtailment are computed. Simulation results show that a 10% penetration of electric vehicles in the Portuguese fleet would increase electrical load by 3% and reduce wind curtailment by only 26%. This results from the fact that the additional generation required to supply the electric vehicles is mostly thermal. The computed CO2 emissions of the EV are 92 g CO2/kWh which become closer to those of some new ICE engines.

Competitiveness Comparison of the Electricity Production Alternatives

The competitiveness comparison is carried out for merely electricity producing alternatives. In Finland, further construction of CHP (combined heat and power) power plants will continue and cover part of the future power supply deficit, but also new condensing power plant capacity will be needed. The following types of power plants are studied: - nuclear power plant, - coal-fired condensing power plant - combined cycle gas turbine plant, - peat-fired condensing power plant. - wood-fired condensing power plant - wind power plant The calculations have been made using the annuity method with a real interest rate of 5 % perannum and with a fixed price level as of March 2003. With the annual full load utilization time of 8000 hours the nuclear electricity would cost 23,7 ¤/MWh, the gas based electricity 32,3 ¤/MWh and coal based electricity 28,1 ¤/MWh. If the influence of emission trading is taken into account,the advantage of the nuclear power will still be improved. Inorder to study the impact of changes in the input data, a sensitivity analysis has been carried out. It reveals that the advantage of the nuclear power is quite clear. E.g. the nuclear electricity is rather insensitive tothe changes of the uranium price, whereas for natural gas alternative the rising trend of gas price causes the greatest risk.

Kuulakekoreaktorin sähköntuotantokustannusten arviointi

Tässä työssä selvitettiin heliumjäähdytteisellä kuulakekoreaktorilla tuotetun sähkön hinnan muodostumista. Saatuja tuloksia vertailtiin hiilidioksidin erotuksen savukaasuista mahdollistavilla laitteilla varustettuihin hiili- ja maakaasuvoimalaitoksiin sekä kevytvesitekniikalla toteutettuun ydinvoimalaan. Työssä käytiin lyhyesti läpi kuulakekoreaktorin tekniikkaa ja mahdollisia sovelluskohteita, joissa voidaan käyttää hyväksi reaktorin jäähdytteen korkeaa lämpötilaa. Kuulakekoreaktorin kustannustietoja arvioitiin eri lähteissä esitettyjen lukujen perusteella. Ominaisinvestointikustannukseksi saatiin 1722 €/kWe. Sähköntuotannon polttoainekustannukseksi laskettiin 5,4 €/MWh ja käyttö- ja kunnossapito-kustannuksina käytettiin 7 €/MWh. Laitoksen sähköntuotantokustannusten laskenta suoritettiin annuiteettimenetelmällä käyttäen 5 % reaalikorkoa ja 40 vuoden taloudellista pitoaikaa sekä 90 % käyttökerrointa. Laskuissa käytettiin vuoden 2002 hintatasoa. Laskelmien perusteella kuulakekoreaktorin sähköntuotantokustannukseksi saatiin 25,1 €/MWh. Tämän todettiin olevan samalla tasolla kuin kevytvesireaktorilla tuotetun sähkön hinta. Hiilidioksidin erotuslaitteilla varustetun hiilivoimalaitoksen sähköntuotantokustannukseksi saatiin 44,0 €/MWh ja maakaasukombivoimalaitoksen 36,3 €/MWh.

Sähkön tuotantokustannusvertailu

Työssä vertaillaan eri sähköntuotantovaihtoehtojen taloudellista kannattavuutta. Kannattavuusvertailu suoritetaan pelkkää sähköä tuottaville voimalaitoksille. Sähkön ja lämmön yhteistuotannon lisärakentaminen tulee kattamaan tietyn osuuden lähitulevaisuuden sähkön hankinnan vajeesta, mutta sen lisäksi tarvitaan myös uutta lauhdetuotantokapasiteettia. Tutkittavat voimalaitostyypit ovat: ydinvoimalaitos, maakaasukombilauhdevoimalaitos, kivihiililauhdevoimalaitos, turvelauhdevoimalaitos, puulauhdevoimalaitos ja tuulivoimala. Kannattavuustarkastelu suoritetaan annuiteettimenetelmällä käyttäen 5 % reaalikorkoa ja tammikuun 2008 hintatasoa. Laskelmien perusteella 8000 tunnin huipunkäyttöajalla ydinsähkön tuotantokustannus olisi 35,0 € /MWh, kaasusähkön 59,2 €/MWh ja hiilisähkön 64,4 €/MWh, kun hiilidioksidipäästöoikeuden hintana käytetään 23 €/t. Ilman päästökauppaa kaasusähkön hinta on 51,2 €/MWh ja hiilisähkön 45,7 €/MWh ydinsähkön hinnan pysyessä ennallaan. Herkkyystarkastelun tulosten perusteella ydinvoiman kilpailukyky korostuu muihin tarkasteltuihin tuotantomuotoihin verrattuna. Ydinpolttoaineen suurellakaan hinnan muutoksella ei ole merkittävää vaikutusta ydinsähkön tuotantokustannukseen, kun taas maakaasusähkö on erittäin riippuvainen polttoaineen hinnasta. Myös päästöoikeuden hinnan kasvu lisää merkittävästi ydinvoiman kilpailukykyä kaasu- ja hiilisähköön verrattuna. Ydinvoimainvestoinnin kannattavuutta ja takaisinmaksua tarkastellaan myös yksinään siten, että investoinnilla saavutettavien tuottojen laskennassa käytetään useita eri sähkön markkinahintoja. Investoinnin kannattavuus on erittäin hyvä, kun sähkön markkinahinta on 50 €/MWh tai suurempi.

Sähkön tuotantokustannusvertailu

Työssä vertaillaan eri sähköntuotantovaihtoehtojen taloudellista kannattavuutta. Kannattavuusvertailu suoritetaan pelkkää sähköä tuottaville voimalaitoksille. Raportti on jatkoa aikaisemmille tutkimuksille, joista viimeisin julkaistiin 2008. Tutkittavat voimalaitostyypit ovat: ydinvoimalaitos, maakaasukombilauhdevoimalaitos, kivihiililauhdevoimalaitos, turvelauhdevoimalaitos, puulauhdevoimalaitos, tuulivoimala ja uutena aurinkovoimala. Kannattavuustarkastelu suoritetaan annuiteettimenetelmällä käyttäen 5 % reaalikorkoa ja maaliskuun 2012 hintatasoa. Laskelmien perusteella 8000 tunnin huipunkäyttöajalla ydinsähkön tuotantokustannus, kun laitos rakennetaan olemassaolevalle tontille olisi 43,7 €/MWh, täysin uuden ydinvoimalaitoksen 57,9 €/MWh, kaasusähkön 75,4 €/MWh, turvelauhteen 75,4 €/MWh ja hiilisähkön hiilidioksidin talteenotolla 64,4 €/MWh, kun hiilidioksidipäästöoikeuden hintana käytetään 23 €/t. Vastaavasti uusiutuvista puupolttoainelauhdesähkön tuotantokustannus olisi 70,2 €/MWh kun taas 2200 tunnin huipunkäyttöajalla maalla sijaitsevan tuulivoimalaitoksen sähkön tuotantokustannus 52,7 €/MWh ja merellä sijaitsevan tuulivoimalaitoksen 76,8 €/MWh. Erillistarkastelussa arvioitiin suurien keskittävää teknologiaa käyttävän aurinko-voimalaitoksen tuotantokustannuksen ylittävän 100 €/MWh ollen todennäköisesti lähempänä 150 €/MWh. Arvio piensähkön tuotantokustannuksista aurinkosähköisillä paneeleilla vaihtelee 90 – 130 €/MWh. Merkittävin kustannussäästö syntyy, jos aurinkosähköpaketteja voidaan tarjota kuluttajalle kokonaistoimituksena avaimet käteen. Aurinkosähkön tuottaminen kotikeräimillä näyttääkin olevan vaiheessa, jossa se on selkeästi pienkäyttäjälle edullista mikäli sijoitettava pääoma 6000 – 18000 € ei vaadi ulkopuolista rahoitusta.

Achieving EU energy targets – Impacts of evolutionary and revolutionary transition paths on power systems

Ambitious energy targets set by EU put pressures to increase share of renewable electricity supply in this and next decades and therefore, some EU member countries have boosted increasing renewable energy generation capacity by implementing subsidy schemes on national level. In this study, two different change approaches to increase renewable energy supply and increase self-sufficiency of supply are assessed with respect to their impacts on power system, electricity market and electricity generation costs in Finland. It is obtained that the current electricity generation costs are high compared to opportunities of earnings from present-day investor’s perspective. In addition, the growth expectations of consumptions and the price forecasts do not stimulate investing in new generation capacity. Revolutionary transition path is driven by administrative and political interventions to achieve the energy targets. Evolutionary transition path is driven by market-based mechanisms, such as market itself and emission trading scheme. It is obtained in this study that in the revolutionary transition path operation of market-based mechanisms is distorted to some extent and it is likely that this path requires providing more public financial resources compared to evolutionary transition path. In the evolutionary transition path the energy targets are not achieved as quickly but market-based mechanisms function better and investment environment endures more stable compared to revolutionary transition path.

Economic and technical feasibility study of a combined-cycle cogeneration system associated with cellulose plants

In this paper, is presented an economical and technical feasibility study of a combined cycle cogeneration system proposed to be used in a pulp plant located in Brazil, where around 95% of country's pulp production is done by the use of Kraft Process. This process allows the use of black liquor and other by-products as fuel. This study is based upon actual data from a pulp plant with a daily production of 1000 tons., that generates part of the energy demanded by the process in a conventional cogeneration system with condensing steam turbine and two extractions. The addition of a gas turbine was studied to compare electricity production level and its related costs between original system and the new one, considering that the former can use industrial by-products and firewood as fuel, when required. Several parameters related to electric generation systems operation and production costs were studied. The use of natural gas in the combined cycle, in comparison with the use of firewood in the conventional system was studied. The advantages of natural gas fuel are highlighted. The surplus availability and the electricity generation costs are presented as a function of pulp and black liquor production.

Renewable energies potential in Jamaica

Includes bibliography

Pricing of reactive power support provided by distributed generators in transmission systems

Distributed Generation, microgrid technologies, two-way communication systems, and demand response programs are issues that are being studied in recent years within the concept of smart grids. At some level of enough penetration, the Distributed Generators (DGs) can provide benefits for sub-transmission and transmission systems through the so-called ancillary services. This work is focused on the ancillary service of reactive power support provided by DGs, specifically Wind Turbine Generators (WTGs), with high level of impact on transmission systems. The main objective of this work is to propose an optimization methodology to price this service by determining the costs in which a DG incurs when it loses sales opportunity of active power, i.e, by determining the Loss of Opportunity Costs (LOC). LOC occur when more reactive power is required than available, and the active power generation has to be reduced in order to increase the reactive power capacity. In the optimization process, three objectives are considered: active power generation costs of DGs, voltage stability margin of the system, and losses in the lines of the network. Uncertainties of WTGs are reduced solving multi-objective optimal power flows in multiple probabilistic scenarios constructed by Monte Carlo simulations, and modeling the time series associated with the active power generation of each WTG via Fuzzy Logic and Markov Chains. The proposed methodology was tested using the IEEE 14 bus test system with two WTGs installed. © 2011 IEEE.

Investigação e aplicação de métodos primal - dual pontos interiores em problemas de despacho econômico e ambiental

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

Istmo Centroamericano: la regulación de la distribución de energía eléctrica en los países con empresas privadas. Los casos de El Salvador, Guatemala, Nicaragua y Panamá

Incluye Bibliografía