scholarly journals Technological Change in Electric Power Supply Chain: Quantifying Economic Benefits of General Electric's GT11N2 M

2021 ◽  
Author(s):  
Talat Genc
Keyword(s):  
Supply Chain ◽  
Power Supply ◽  
Electricity Market ◽  
New Technology ◽  
Economic Benefits ◽  
Combined Cycle ◽  
Chain Model ◽  
Operational Mode ◽  
Wholesale Market ◽  
Electric Power Supply

Abstract This paper examines General Electric's new combined-cycle gas turbine GT11N2 M upgrade. The new technology provides operational flexibility and promises output and cost efficiencies. To investigate the benefis of this technology, we propose a power supply chain model and construct cost functions for generation and service and maintenance using actual market and firm level data. The upstream firm is General Electric (GE) who invests in GT11N2 generators. The investment results in innovation of GT11N2 M upgrade facilitating different operational modes and efficiencies. The downstream firm is TransAlta's Sarnia plant which utilizes this new technology to produce and sell electricity to residential, small business, industrial, and wholesale market customers in Ontario, Canada. We quantify equilibrium prices and outputs under various efficiency rates in costs of fuel, service, and maintenance. We find a large variation in electricity generation depending on which operational mode ("Maximum Continuous Load" or "Performance" or "Lifetime") of GT11N2 M is selected. Under a mixed usage of all modes, we expect 44% output expansion to the industrial customers and 0.2% sales increase in the Ontario wholesale electricity market. Under this mode, GE's price should go down by 0.4% due to fuel cost efficiency. If GE's cost was $2.8 per MWh, GE should have asked Trans-Alta an average price of $5.822 per MWh for service and maintenance prior to the new technology. With the new technology, GE should charge $5.502 per MWh to Trans Alta. While GE's sales to wholesale market are almost stable, the sales to industrial customers increase nonlinearly in downstream efficiency rates. This shows that the amount of greenhouse gas emissions will be largely impacted by the choice of operational mode and how long it is used.

scholarly journals Electric power supply chain networks design featuring differential pricing and preventive maintenance

2021 ◽  
Author(s):  
Yu-Chung Tsao ◽  
Thuy-Linh Vu ◽  
Jye-Chyi Lu
Keyword(s):  
Supply Chain ◽  
Electric Power ◽  
Power Supply ◽  
Preventive Maintenance ◽  
Power Plants ◽  
Network Design Problem ◽  
Supply Chain Network ◽  
Electric Power Supply ◽  
Power Company ◽  
Differential Pricing

The electric power supply chain network plays an important role in the world economy. It powers our homes, offices, and industries and runs various forms of transportation. This paper considers an electric power supply chain network design problem featuring differential pricing and preventive maintenance. We demonstrate that this general model can be formulated as the centralized and decentralized supply chain models. A continuous approximation approach is used to model the problems. The objective of these models is to determine the optimal power plants’ service area, electricity price, and preventive maintenance budget while maximizing the total network profit or the own organization’s benefits. Our model is applied to the case of a power company in northern Vietnam. We show that the proposed approach can be used to address real-world cases effectively. The results demonstrate that the use of differential pricing policy and preventive maintenance could much enhance power company profit.

scholarly journals Modeling of Electric Power Supply Chain Networks with Fuel Suppliers via Variational Inequalities

2007 ◽  
Vol 8 (1) ◽  
Author(s):  
Dmytro Matsypura ◽  
Anna Nagurney ◽  
Zugang Liu
Keyword(s):  
Supply Chain ◽  
Electric Power ◽  
Flow Pattern ◽  
Power Supply ◽  
Service Providers ◽  
Electric Power Industry ◽  
The United States ◽  
Qualitative Properties ◽  
Existence Of A Solution ◽  
Electric Power Supply

The electric power industry in the United States and in other countries is undergoing profound regulatory and operational changes. The underlying rationale behind these transformations is to move once highly monopolized vertically-integrated industry from a centralized operation approach to a competitive one. The emerging competitive markets and an increase in the number of market participants have, in turn, fundamentally changed not only electricity trading patterns but also the structure of the electric power supply chains. This new framework requires new mathematical and engineering models and associated algorithmic tools. Moreover, the availability of fuels for electric power generation is a topic of both economic importance and national security. This paper uses the model developed by Nagurney and Matsypura (2004, 2006) as the foundation for the introduction of explicit fuel suppliers, in the case of nonrenewable and/or renewable fuels, and their optimizing behavior, into a general electric power supply chain network model along with "direct-supply" generation. We derive the optimality conditions for the various decision-makers, including fuel suppliers, power generators, suppliers, as well as the transmission service providers and the consumers at the demand markets. We establish that the governing equilibrium conditions satisfy a finite-dimensional variational inequality problem. We provide qualitative properties of the equilibrium flow pattern; in particular, existence of a solution and uniqueness under suitable assumptions. Finally, we discuss how the equilibrium fuel supply and electric power flow pattern can be computed.

scholarly journals Coal-Electric Power Supply Chain Reduction and Operation Strategy under the Cap-and-Trade Model and Green Financial Background

2019 ◽  
Vol 11 (11) ◽  
pp. 3021 ◽  
Author(s):  
Bowen Da ◽  
Chuanzhe Liu ◽  
Nana Liu ◽  
Yufei Xia ◽  
Fangming Xie
Keyword(s):  
Supply Chain ◽  
Electric Power ◽  
Power Supply ◽  
Price Regulation ◽  
Bank Loan ◽  
Low Carbon ◽  
Electric Power Supply ◽  
Carbon Reduction ◽  
Trade Model ◽  
Electric Enterprises

For reliving the pressure of air pollution and corresponding the sustainability development policy in China, the companies are urging the creation of a highly productive low-carbon supply chain. This work uses price regulation, the cap-and-trade model, and a green financial policy background to establish a strategy for the coal–electric power supply chain with two-level carbon reduction and operation with financial constraints. A Stackelberg model was built to help investigate the rate of thermal order realization, the carbon reduction strategy in the coal enterprise, and the amount of thermal energy ordered in the electric enterprise. Results show that under a green financial background, a high bank loan discount rate for investing in carbon reduction technology equates to large carbon reduction in coal enterprises, large quantities of thermal energy ordered in electric enterprises, and high profit for coal and electric enterprises. However, the realization rate of thermal power ordered decreased when the price regulation become strict, thereby reducing the profit and carbon emission in electric enterprise. Therefore, the thermal price regulation level increased, the profit on both company and the production did not respond with sensitivity, and the government could encourage a low carbon model by controlling the bank loan rate.

scholarly journals Multiobjective Optimization of Sustainable WCO for Biodiesel Supply Chain Network Design

2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Nana Geng ◽  
Yixiang Sun
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Economic Benefits ◽  
Chain Model ◽  
Practical Case ◽  
Supply Chain Network ◽  
Kitchen Waste ◽  
The Sustainable Development ◽  
Biodiesel Industry

Bioenergy is attracting more attention worldwide due to its environmental and economic benefits. The design of a feasible biodiesel supply chain network can effectively improve the production and use of biodiesel and then further promote the development of the biodiesel industry. As an easy recyclable material with high yield, kitchen waste has a good prospect and can solve public health and safety problems. This paper takes the kitchen waste producing biodiesel as the object to design and optimize the biodiesel supply chain in order to improve the sustainable development of biodiesel industry and the operational efficiency of the biodiesel supply chain. By designing a sustainable biodiesel supply chain model under defined conditions, it proposes strategic and tactical decisions related to location, production, inventory, and distribution within multiple planning cycles. In order to effectively solve the model, a Pareto optimal NSGAII heuristic algorithm is proposed and applied to a practical case study of restaurants in Jiangsu Province. The efficiency of the method and the optimal solution are verified by a case study. The overall optimization of biodiesel supply can effectively improve the efficiency of supply chain, reduce system cost, improve the profit of biodiesel operators, and promote the sustainable development of biodiesel industry, which has important guiding significance and reference value for the practice of biodiesel supply chain network planning.

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