Investments in Renewable and Conventional Energy: The Role of Operational Flexibility

2020 ◽  
Vol 22 (5) ◽  
pp. 925-941 ◽  
Author(s):  
A. Gürhan Kök ◽  
Kevin Shang ◽  
Şafak Yücel
Keyword(s):  
Natural Gas ◽  
Solar Energy ◽  
Wind Energy ◽  
Power Plants ◽  
Problem Definition ◽  
Policy Implications ◽  
Operational Flexibility ◽  
Capacity Investment ◽  
Optimal Capacity ◽  
Investment Level

Problem definition: There is an ongoing debate on how providing a subsidy for one energy source affects the investment level of other sources. Academic/practical relevance: To investigate this issue, we study a capacity investment problem for a utility firm that invests in renewable and conventional energy, with a consideration of two critical factors. First, conventional sources have different levels of operational flexibility—inflexible (e.g., nuclear and coal) and flexible (e.g., natural gas). Second, random renewable energy supply and electricity demand are correlated and nonstationary. Methodology: We model this problem as a two-stage stochastic program in which a utility firm first determines the capacity investment levels followed by the dispatch quantities of energy sources to minimize the sum of investment and generation-related costs. Results: We derive the optimal capacity portfolio to characterize the interactions between renewable and conventional sources. Policy implications: We find that renewable and inflexible sources are substitutes, suggesting that a subsidy for nuclear or coal-fired power plants leads to a lower investment level in wind or solar energy. However, wind energy and flexible sources are complements. Thus, a subsidy for flexible natural gas-fired power plants leads to a higher investment in wind energy. This result holds for solar energy if the subsidy for the flexible source is sufficiently high. We validate these insights by using real electricity generation and demand data from the state of Texas.

Wind Energy and Compressed Air Energy Storage Potential for New York City

2012 ◽  
Author(s):  
Michael Waite ◽  
Vijay Modi
Keyword(s):  
New York ◽  
New York City ◽  
Energy Storage ◽  
Natural Gas ◽  
Wind Energy ◽  
York City ◽  
Power Plants ◽  
New York State ◽  
Electricity Demand ◽  
Compressed Air

The energy potential from wind is significant in many locations in the U.S., including in some areas of New York State. The intermittent availability of wind — specifically, higher wind potential at night and in the winter in New York — would require extensive storage to make use of that energy during times of peak electricity demand — during the day and in the summer. Although the total energy available from wind may be sufficient and available at a low cost, the cost of implementing traditional storage techniques (e.g. batteries) would be expensive and require large amounts of space to address the offset supply and demand profiles. As such, base electricity loads are likely to continue to be served by a combination of less expensive energy conversion technologies, particularly given the current low cost of wholesale natural gas for gas-fueled power plants. Compressed air energy storage (CAES) has been evaluated — and implemented or proposed at a small number of facilities — as a potential energy storage technology that could be used to reduce the amount natural gas required to operate compressors at natural gas-fueled power plants serving base electricity demands. The result of this strategy is, effectively, an increase in thermal efficiency of the power plant. This paper presents an evaluation of wind energy available at a site in New York State, its potential to meet the electricity demand in New York City, the expected capital and recurring costs of the overall system, and a comparison to electricity provided by natural gas, a likely alternative large-scale fuel source. Annual wind data for the site and annual New York City electricity usage were analyzed. Available wind energy was first assumed to serve any electricity demand above the New York City base load. Additional available wind energy operates compressors, storing compressed air in underground caverns. The cavern sizes required and associated capital costs was calculated. The expected reduction in natural gas requirements were calculated for gas-fuelled power plants designed to accept compressed air from the caverns, with additional electricity demand met by gas turbine power plants. The recurrent cost reductions associated with reduced natural gas volumes were calculated based on a range of natural gas prices to evaluate the feasibility of the system described above under different market conditions. The potential usage of CAES systems for peak electricity demands was also evaluated.

Generation of Electricity by US States

2020 ◽  
pp. 489-511
Author(s):  
Paul F. Meier
Keyword(s):  
North Carolina ◽  
Renewable Energy ◽  
Natural Gas ◽  
Solar Energy ◽  
Significant Variation ◽  
Nuclear Power ◽  
Power Plants ◽  
The Sun ◽  
Us States ◽  
Hydroelectric Plants

This chapter explores how the fifty US states generate electricity, and the analysis shows significant variation in how electricity is generated state-by-state. While coal was formerly the dominant fuel for generating electricity, natural gas surpassed coal in 2015. Although thirteen states still produce more than 50% of their electricity from coal, fourteen states generated less than 5%. There have been no new nuclear power plants built since 1996, but seven states still generated more than 40% of their electricity from this resource. In renewable energy, wind and solar are gaining in importance. Fourteen states now generate more than 10% of their electricity from wind, and three states more than 30%. Solar energy is also growing, but mostly in the sun-drenched states of California, Arizona, Nevada, and North Carolina, which account for 67% of US solar energy. Hydroelectric is also important, and five states generated more than 50% of their electricity from hydroelectric plants.

Effect of Chemical Hythane Composition on Pressure in Combustion Chamber of Engine

2019 ◽  
pp. 36-42
Author(s):  
A. P. Shaikin ◽  
I. R. Galiev
Keyword(s):  
Natural Gas ◽  
Combustion Chamber ◽  
Power Plants ◽  
Engine Speed ◽  
Combustion Engine ◽  
Fuel Mixture ◽  
Maximum Pressure ◽  
Chamber Volume ◽  
Excess Air ◽  
Scientific Papers

The article analyzes the influence of chemical composition of hythane (a mixture of natural gas with hydrogen) on pressure in an engine combustion chamber. A review of the literature has showed the relevance of using hythane in transport energy industry, and also revealed a number of scientific papers devoted to studying the effect of hythane on environmental and traction-dynamic characteristics of the engine. We have studied a single-cylinder spark-ignited internal combustion engine. In the experiments, the varying factors are: engine speed (600 and 900 min-1), excess air ratio and hydrogen concentration in natural gas which are 29, 47 and 58% (volume).The article shows that at idling engine speed maximum pressure in combustion chamber depends on excess air ratio and proportion hydrogen in the air-fuel mixture – the poorer air-fuel mixture and greater addition of hydrogen is, the more intense pressure increases. The positive effect of hydrogen on pressure is explained by the fact that addition of hydrogen contributes to increase in heat of combustion fuel and rate propagation of the flame. As a result, during combustion, more heat is released, and the fuel itself burns in a smaller volume. Thus, the addition of hydrogen can ensure stable combustion of a lean air-fuel mixture without loss of engine power. Moreover, the article shows that, despite the change in engine speed, addition of hydrogen, excess air ratio, type of fuel (natural gas and gasoline), there is a power-law dependence of the maximum pressure in engine cylinder on combustion chamber volume. Processing and analysis of the results of the foreign and domestic researchers have showed that patterns we discovered are applicable to engines of different designs, operating at different speeds and using different hydrocarbon fuels. The results research presented allow us to reduce the time and material costs when creating new power plants using hythane and meeting modern requirements for power, economy and toxicity.

Current and Future Technologies for Natural Gas Combined Cycle (NGCC) Power Plants

2013 ◽  
Author(s):  
Norma J. Kuehn ◽  
Kajal Mukherjee ◽  
Paul Phiambolis ◽  
Lora L. Pinkerton ◽  
Elsy Varghese ◽  
...  
Keyword(s):  
Natural Gas ◽  
Power Plants ◽  
Combined Cycle ◽  
Natural Gas Combined Cycle ◽  
Future Technologies

scholarly journals A SWOT Analysis Approach for a Sustainable Transition to Renewable Energy in South Africa

2021 ◽  
Vol 13 (7) ◽  
pp. 3933
Author(s):  
Solomon E. Uhunamure ◽  
Karabo Shale
Keyword(s):  
Climate Change ◽  
South Africa ◽  
Renewable Energy ◽  
Regional Integration ◽  
Power Plants ◽  
Swot Analysis ◽  
Climatic Conditions ◽  
Policy Implications ◽  
Analysis Approach ◽  
Renewable Energy Resources

South Africa is been faced with erratic power supply, resulting in persistent load shedding due to ageing in most of its coal-fired power plants. Associated with generating electricity from fossil fuel are environmental consequences such as greenhouse emissions and climate change. On the other hand, the country is endowed with abundant renewable energy resources that can potentially ameliorate its energy needs. This article explores the viability of renewable energy using the strengths, weaknesses, opportunities and threats (SWOT) analysis approach on the key renewable potential in the country. The result indicates that geographic position, political and economic stability and policy implementation are some of the strengths. However, Government bureaucratic processes, level of awareness and high investment cost are some of the weaknesses. Several opportunities favour switching to renewable energy, and these include regional integration, global awareness on climate change and the continuous electricity demand. Some threats hindering the renewable energy sector in the country include land ownership, corruption and erratic climatic conditions. Some policy implications are suggested based on the findings of the study.

scholarly journals Weather-Driven Scenario Analysis for Decommissioning Coal Power Plants in High PV Penetration Grids

Energies ◽  
2021 ◽  
Vol 14 (9) ◽  
pp. 2389
Author(s):  
Samuel Matthew G. Dumlao ◽  
Keiichi N. Ishihara
Keyword(s):  
Solar Energy ◽  
Scenario Analysis ◽  
Power Plants ◽  
Solar Power ◽  
Flow Analysis ◽  
Policy Decision ◽  
Hourly Temperature ◽  
Coal Power Plants ◽  
Coal Power ◽  
Pv Penetration

Despite coal being one of the major contributors of CO2, it remains a cheap and stable source of electricity. However, several countries have turned to solar energy in their goal to “green” their energy generation. Solar energy has the potential to displace coal with support from natural gas. In this study, an hourly power flow analysis was conducted to understand the potential, limitations, and implications of using solar energy as a driver for decommissioning coal power plants. To ensure the results’ robustness, the study presents a straightforward weather-driven scenario analysis that utilizes historical weather and electricity demand to generate representative scenarios. This approach was tested in Japan’s southernmost region, since it represents a regional grid with high PV penetration and a fleet of coal plants older than 40 years. The results revealed that solar power could decommission 3.5 GW of the 7 GW coal capacity in Kyushu. It was discovered that beyond 12 GW, solar power could not reduce the minimum coal capacity, but it could still reduce coal generation. By increasing the solar capacity from 10 GW to 20 GW and the LNG quota from 10 TWh to 28 TWh, solar and LNG electricty generation could reduce the emissions by 37%, but the cost will increase by 5.6%. Results also show various ways to reduce emissions, making the balance between cost and CO2 a policy decision. The results emphasized that investing in solar power alone will not be enough, and another source of energy is necessary, especially for summer and winter. The weather-driven approach highlighted the importance of weather in the analysis, as it affected the results to varying degrees. The approach, with minor changes, could easily be replicated in other nations or regions provided that historical hourly temperature, irradiance, and demand data are available.

scholarly journals Sustainable Energy-Related Infrastructure Development in the Mekong Subregion: Key Drivers and Policy Implications

2021 ◽  
Vol 13 (10) ◽  
pp. 5720
Author(s):  
Han Phoumin ◽  
Sopheak Meas ◽  
Hatda Pich An
Keyword(s):  
Carbon Dioxide Emissions ◽  
Energy Demand ◽  
Power Plants ◽  
Policy Implications ◽  
Infrastructure Investment ◽  
Infrastructure Development ◽  
Low Carbon ◽  
Energy Access ◽  
Low Carbon Economy ◽  
The One

Many players have supported infrastructure development in the Mekong Subregion, bridging the missing links in Southeast Asia. While the influx of energy-related infrastructure development investments to the region has improved the livelihoods of millions of people on the one hand, it has brought about a myriad of challenges to the wider region in guiding investments for quality infrastructure and for promoting a low-carbon economy, and energy access and affordability, on the other hand. Besides reviewing key regional initiatives for infrastructure investment and development, this paper examines energy demand and supply, and forecasts energy consumption in the subregion during 2017–2050 using energy modeling scenario analysis. The study found that to satisfy growing energy demand in the subregion, huge power generation infrastructure investment, estimated at around USD 190 billion–220 billion, is necessary between 2017 and 2050 and that such an investment will need to be guided by appropriate policy. We argue that without redesigning energy policy towards high-quality energy infrastructure, it is very likely that the increasing use of coal upon which the region greatly depends will lead to the widespread construction of coal-fired power plants, which could result in increased greenhouse gas and carbon dioxide emissions.

scholarly journals Harnessing Wind Energy Potential in ASEAN: Modelling and Policy Implications

2021 ◽  
Vol 13 (8) ◽  
pp. 4279
Author(s):  
Youngho Chang ◽  
Phoumin Han
Keyword(s):  
Wind Energy ◽  
Carbon Emissions ◽  
Policy Implications ◽  
Wind Generation ◽  
Energy Potential ◽  
Trade Model ◽  
Electricity Trade ◽  
Generation Capacity ◽  
The Cost ◽  
Business As Usual

This study examines whether and how harnessing more wind energy can decrease the cost of meeting the demand for electricity and amount of carbon emissions in the Association for Southeast Asian Nations (ASEAN) region, using the ASEAN integrated electricity trade model. Three scenarios are considered: a counterfactual business-as-usual (BAU) scenario, which assumes no wind energy is used; an actual BAU scenario that uses the wind-generation capacity in 2018; and a REmap scenario, which employs the wind-generation capacity from the Renewable Energy Outlook for ASEAN. Simulation results suggest that dispatching more wind energy decreases the cost of meeting the demand for electricity and amount of carbon emissions. However, these emissions increase during the late years of the study period, as the no- or low-emitting energy-generation technologies are crowded out.

scholarly journals Dual Efficiency and Productivity Analysis of Renewable Energy Alternatives of OECD Countries

2021 ◽  
Vol 13 (13) ◽  
pp. 7401
Author(s):  
Sedef E. Kara ◽  
Mustapha D. Ibrahim ◽  
Sahand Daneshvar
Keyword(s):  
Renewable Energy ◽  
Solar Energy ◽  
Wind Energy ◽  
Oecd Countries ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Productivity Analysis ◽  
Average Efficiency ◽  
Efficiency And Productivity

This paper examines the dual efficiency of bioenergy, renewable hydro energy, solar energy, wind energy, and geothermal energy for selected OECD countries through an integrated model with energy, economic, environmental, and social dimensions. Two questions are explored: Which renewable energy alternative is more dual efficient and productive? Which renewable energy alternative is best for a particular country? Data envelopment analysis (DEA) is used for the efficiency evaluation, and the global Malmquist productivity index is applied for productivity analysis. Results indicate bioenergy as the most efficient renewable energy alternative with a 20% increase in average efficiency in 2016 compared to 2012. Renewable hydro energy, wind energy, and solar energy show a 17.5%, 16%, and 11% increase, respectively. The average efficiency growth across all renewable energy alternatives signifies major advancement. Country performance in renewable energy is non-monolithic; therefore, they should customize their renewable energy portfolio accordingly to their strengths to enhance renewable energy efficiency. Renewable hydro appears to have the most positive productivity change in 2016 compared to 2012, while solar energy regressed in productivity due to its scale inefficiency. All renewable energy alternatives have relatively equal average pure efficiency change. The positive trend in efficiency and productivity provides an incentive for policy makers to pursue further development of renewable energy technologies with a focus on improving scale efficiency.

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