scholarly journals A Novel LCOE Pricing Model for Renewable Energy with Power Purchase Agreement: A Case Study in China

Processes ◽  
2021 ◽  
Vol 9 (10) ◽  
pp. 1780
Author(s):  
Jun Dong ◽  
Dongran Liu ◽  
Yaoyu Zhang ◽  
Yuanyuan Wang ◽  
Xihao Dou
Keyword(s):  
Renewable Energy ◽  
Electricity Markets ◽  
Electricity Market ◽  
Power Plants ◽  
Operating Cost ◽  
Operating Costs ◽  
Pricing Model ◽  
Correlation Degree ◽  
Energy Companies

To reach Carbon Peak in 2030 and Carbon Neutrality in 2060, China is developing renewable energy at a fast pace. Renewable energy enterprises will participate in the power market in an all-round way as China gradually improves its electricity market. Signing the Power Purchase Agreement (PPA) helps renewable energy companies to avoid market risk and achieve sustainable development. Therefore, a novel PPA pricing model is proposed in our research. Based on the theory of the Levelized Cost of Energy (LCOE), our model considers system operating costs in China’s dual-track electric power sector, which is both government-guided and market-oriented. First of all, key influencing factors of the PPA agreement are analyzed in view of the developments of the renewable energy and electricity markets in China. Next, the design of pricing strategies for renewable energy power plants to cope with market challenges is presented through a photovoltaic project case study. The results show that when the operating costs of the system are considered and other conditions remain unchanged, the investment payback period of the new energy power station will change from 10.8 years to 13.6 years. Furthermore, correlation degree and sensitivity coefficient (SAF) were introduced to conduct correlation analysis and sensitivity analysis of key elements that affect the pricing of the PPA. Finally, it is concluded that the utilization hours of power generation have the most significant effect on the PPA price, while the system’s operating cost is the least sensitive factor. The study expands the application of LCOE, and provides a decision-making solution for the PPA pricing of renewable energy power enterprises. It is expected to help promote power transactions by renewable energy companies.

scholarly journals Analyzing Trade in Continuous Intra-Day Electricity Market: An Agent-Based Modeling Approach

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3860
Author(s):  
Priyanka Shinde ◽  
Ioannis Boukas ◽  
David Radu ◽  
Miguel Manuel de Manuel de Villena ◽  
Mikael Amelin
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Thermal Power ◽  
Agent Based Modeling ◽  
Market Liquidity ◽  
Energy Sources ◽  
Modeling Framework ◽  
Agent Based

In recent years, the vast penetration of renewable energy sources has introduced a large degree of uncertainty into the power system, thus leading to increased trading activity in the continuous intra-day electricity market. In this paper, we propose an agent-based modeling framework to analyze the behavior and the interactions between renewable energy sources, consumers and thermal power plants in the European Continuous Intra-day (CID) market. Additionally, we propose a novel adaptive trading strategy that can be used by the agents that participate in CID market. The agents learn how to adapt their behavior according to the arrival of new information and how to react to changing market conditions by updating their willingness to trade. A comparative analysis was performed to study the behavior of agents when they adopt the proposed strategy as opposed to other benchmark strategies. The effects of unexpected outages and information asymmetry on the market evolution and the market liquidity were also investigated.

scholarly journals Optimal placement design for picking and packing in distribution centers

2021 ◽  
Vol 13 (4) ◽  
pp. 168781402110106
Author(s):  
John Rios ◽  
Rodrigo Linfati ◽  
Daniel Morillo-Torres ◽  
Iván Derpich ◽  
Gustavo Gatica
Keyword(s):  
Optimal Allocation ◽  
Programming Model ◽  
Operating Cost ◽  
Nonlinear Integer Programming ◽  
Operating Costs ◽  
Optimal Placement ◽  
Distribution Centers ◽  
Suitable Space ◽  
Efficient Distribution

An efficient distribution center (DC) is one that receives, stores, picks and packs products into new logistics units and then dispatches them to points of sale at the minimal operating cost. The picking and packing processes represent the highest operating cost of a DC, and both require a suitable space for their operation. An effective coordination between these zones prevents bottlenecks and has a direct impact on the DC’s operational results. In the existing literature, there are no studies that optimize the distribution of the picking and packing areas simultaneously while also reducing operating costs. This article proposes an integer nonlinear integer programming model that minimizes order preparation costs. It does so by predicting customer demand based on historical data and defining the ideal area for picking and packing activities. The model is validated through a real case study of seven clients and fifteen products. It achieves a [Formula: see text] reduction in operating costs when the optimal allocation of the picking and packing areas is made.

scholarly journals Decentralized Prosumer-Centric P2P Electricity Market Coordination with Grid Security

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4665
Author(s):  
Duarte Kazacos Winter ◽  
Rahul Khatri ◽  
Michael Schmidt
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Power Flow ◽  
Power Plants ◽  
Optimal Power Flow ◽  
Free Market ◽  
Economic Value ◽  
New Paradigm ◽  
Grid Security ◽  
Virtual Power Plants

The increasing number of prosumers and the accompanying greater use of decentralised energy resources (DERs) bring new opportunities and challenges for the traditional electricity systems and the electricity markets. Microgrids, virtual power plants (VPPs), peer-to-peer (P2P) trading and federated power plants (FPPs) propose different schemes for prosumer coordination and have the potential of becoming the new paradigm of electricity market and power system operation. This paper proposes a P2P trading scheme for energy communities that negotiates power flows between participating prosumers with insufficient renewable power supply and prosumers with surplus supply in such a way that the community welfare is maximized while avoiding critical grid conditions. For this purpose, the proposed scheme is based on an Optimal Power Flow (OPF) problem with a Multi-Bilateral Economic Dispatch (MBED) formulation as an objective function. The solution is realized in a fully decentralized manner on the basis of the Relaxed Consensus + Innovations (RCI) algorithm. Network security is ensured by a tariff-based system organized by a network agent that makes use of product differentiation capabilities of the RCI algorithm. It is found that the proposed mechanism accurately finds and prevents hazardous network operations, such as over-voltage in grid buses, while successfully providing economic value to prosumers’ renewable generation within the scope of a P2P, free market.

scholarly journals Prosumer Community Portfolio Optimization via Aggregator: The Case of the Iberian Electricity Market and Portuguese Retail Market

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3747
Author(s):  
Ricardo Faia ◽  
Tiago Pinto ◽  
Zita Vale ◽  
Juan Manuel Corchado
Keyword(s):  
Portfolio Optimization ◽  
Electricity Markets ◽  
Electricity Market ◽  
Retail Market ◽  
Wholesale Market ◽  
Generation Capacity ◽  
Wholesale Electricity Market ◽  
Portfolio Optimization Model ◽  
Photovoltaic Generators

The participation of household prosumers in wholesale electricity markets is very limited, considering the minimum participation limit imposed by most market participation rules. The generation capacity of households has been increasing since the installation of distributed generation from renewable sources in their facilities brings advantages for themselves and the system. Due to the growth of self-consumption, network operators have been putting aside the purchase of electricity from households, and there has been a reduction in the price of these transactions. This paper proposes an innovative model that uses the aggregation of households to reach the minimum limits of electricity volume needed to participate in the wholesale market. In this way, the Aggregator represents the community of households in market sales and purchases. An electricity transactions portfolio optimization model is proposed to enable the Aggregator reaching the decisions on which markets to participate to maximize the market negotiation outcomes, considering the day-ahead market, intra-day market, and retail market. A case study is presented, considering the Iberian wholesale electricity market and the Portuguese retail market. A community of 50 prosumers equipped with photovoltaic generators and individual storage systems is used to carry out the experiments. A cost reduction of 6–11% is achieved when the community of households buys and sells electricity in the wholesale market through the Aggregator.

scholarly journals Portfolio optimization of power plants by using renewable energy in Iran

2020 ◽  
Author(s):  
Seyedeh Asra Ahmadi ◽  
Seyed Mojtaba Mirlohi ◽  
Mohammad Hossein Ahmadi ◽  
Majid Ameri
Keyword(s):  
Renewable Energy ◽  
Portfolio Optimization ◽  
Energy Supply ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Modern Society ◽  
Sustainable Growth ◽  
Electricity Sector ◽  
Capital Costs

Abstract Lack of investment in the electricity sector has created a huge bottleneck in the continuous flow of energy in the market, and this will create many problems for the sustainable growth and development of modern society. The main reason for this lack of investment is the investment risk in the electricity sector. One way to reduce portfolio risk is to diversify it. This study applies the concept of portfolio optimization to demonstrate the potential for greater use of renewable energy, which reduces the risk of investing in the electricity sector. Besides, it shows that investing in renewable energies can offset the risk associated with the total input costs. These costs stem from the volatility of associated prices, including fossil fuel, capital costs, maintenance, operation and environmental costs. This case study shows that Iran can theoretically supply ~33% of its electricity demand from renewable energy sources compared to its current 15% share. This case study confirms this finding and predicts that Iran, while reducing the risk of investing in electricity supply, can achieve a renewable energy supply of ~9% with an average increase in supply costs. Sensitivity analysis further shows that with a 10% change in input cost factors, the percentage of renewable energy supply is only partially affected, but basket costs change according to the scenario of 5–32%. Finally, suggestions are made that minimize risk rather than cost, which will bring about an increase in renewable energy supply.

scholarly journals Potential utilization of renewable energy resources for electricity generation in Bosnia and Herzegovina

2005 ◽  
Vol 9 (3) ◽  
pp. 15-23 ◽  
Author(s):  
Fajik Begic ◽  
Anes Kazagic
Keyword(s):  
Renewable Energy ◽  
Power System ◽  
Bosnia And Herzegovina ◽  
Electricity Market ◽  
Renewable Resources ◽  
Electricity Generation ◽  
Power Plants ◽  
Energy Resources ◽  
Energy Utilization ◽  
Renewable Energy Resources

Along with the current processes of restructuring of Energy power system of Bosnia and Herzegovina, liberalization of the electricity market, and modernization of the existing power plants, Bosnia and Herzegovina must turn to the utilization of renewable resources in reason able dynamics as well. Respecting this policy, the initial Valuation of the potential of renewable erg resources in Bosnia and Herzegovina is per formed. The methodology of evaluation of wind energy utilization is presented in this paper, as well as some other aspects of utilization of the renewable energy resources in Bosnia and Herzegovina. Implementation of selected projects should improve sustainability of energy power production in Bosnia and Herzegovina, by reducing the total emission of carbon dioxide originated from energy power system of Bosnia and Herzegovina.

scholarly journals Operational and financial performance of fossil fuel power plants within a high renewable energy mix

2017 ◽  
Vol 1 ◽  
pp. 2BIOTO ◽  
Author(s):  
Patrick Eser ◽  
Ndaona Chokani ◽  
Reza S. Abhari
Keyword(s):  
Renewable Energy ◽  
Financial Performance ◽  
Electricity Markets ◽  
Power Plants ◽  
Energy System ◽  
Renewable Power ◽  
High Penetration ◽  
Demand Models ◽  
Wide Range ◽  
Coal Power Plants

AbstractThe operation of conventional power plants in the 2030 high-renewable energy system of central Europe with high penetration of renewables is simulated in this work. Novel insights are gained in this work, since the generation, transmission and demand models have high geographic resolution, down to scale of individual units, with hourly temporal resolution. It is shown that the increases in the partload efficiency that optimize gas power plants’ financial performance in 2030 are highly dependent on the variability in power production of renewable power plants that are in close proximity to the gas power plants. While coal power plants are also cycled more, an increased baseload efficiency is more beneficial for their financial viability. Thus, there is a need for OEMs to offer a wide range of technology solutions to cover all customers’ needs in electricity markets with high penetrations of renewables. Therefore there is an increased investment risk for OEMs as they strive to match their customers’ future needs.

scholarly journals Operational Planning and Bidding for District Heating Systems with Uncertain Renewable Energy Production

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3310 ◽  
Author(s):  
Ignacio Blanco ◽  
Daniela Guericke ◽  
Anders Andersen ◽  
Henrik Madsen
Keyword(s):  
Renewable Energy ◽  
Power Systems ◽  
Power System ◽  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
District Heating ◽  
Operational Planning ◽  
Solution Approach ◽  
The Impact

In countries with an extended use of district heating (DH), the integrated operation of DH and power systems can increase the flexibility of the power system, achieving a higher integration of renewable energy sources (RES). DH operators can not only provide flexibility to the power system by acting on the electricity market, but also profit from the situation to lower the overall system cost. However, the operational planning and bidding includes several uncertain components at the time of planning: electricity prices as well as heat and power production from RES. In this publication, we propose a planning method based on stochastic programming that supports DH operators by scheduling the production and creating bids for the day-ahead and balancing electricity markets. We apply our solution approach to a real case study in Denmark and perform an extensive analysis of the production and trading behavior of the DH system. The analysis provides insights on system costs, how DH system can provide regulating power, and the impact of RES on the planning.

The Effect of Fossil Fuel Prices on Flexible CO2 Capture Operation

2009 ◽  
Author(s):  
Stuart M. Cohen ◽  
John Fyffe ◽  
Gary T. Rochelle ◽  
Michael E. Webber
Keyword(s):  
Power Plant ◽  
Co2 Capture ◽  
Electricity Market ◽  
Power Plants ◽  
Fossil Fuel ◽  
Operating Costs ◽  
Costs And Benefits ◽  
Fuel Prices ◽  
Economic Analyses ◽  
Co2 Capture Systems

Coal consumption for electricity generation produces over 30% of U.S. carbon dioxide (CO2) emissions, but coal is also an available, secure, and low cost fuel that is currently utilized to meet roughly half of America’s electricity demand. While the world transitions from the existing fossil fuel-based energy infrastructure to a sustainable energy system, carbon dioxide capture and sequestration (CCS) will be a critical technology that will allow continued use of coal in an environmentally acceptable manner. Techno-economic analyses are useful in understanding the costs and benefits of CCS. However, typical techno-economic analyses of post-combustion CO2 capture systems assume continuous operation at a high CO2 removal, which could use 30% of pre-capture electricity output and require new capacity installation to replace the output lost to CO2 capture energy requirements. This study, however, considers the inherent flexibility in post-combustion CO2 capture systems by modeling power plants that vary CO2 capture energy requirements in order to increase electricity output when economical under electricity market conditions. A first-order model of electricity dispatch and a competitive electricity market is used to investigate flexible CO2 capture in response to hourly electricity demand variations. The Electric Reliability Council of Texas (ERCOT) electric grid is used as a case study to compare plant and grid performance, economics, and CO2 emissions in scenarios without CO2 capture to those with flexible or inflexible CO2 capture systems. Flexible CO2 capture systems can choose how much CO2 to capture based on the competition between CO2 and electricity prices and a desire to either minimize operating costs or maximize operating profits. Coal and natural gas prices have varying degrees of predictability and volatility, and the relative prices of these fuels have a major impact on power plant operating costs and the resulting plant dispatch sequence. Because the chosen operating point in a flexible CO2 capture system affects net power plant efficiency, fuel prices also influence which CO2 capture operating point may be the most economical and the resulting dispatch of power plants with CO2 capture. Several coal and natural gas price combinations are investigated to determine their impact on flexible CO2 capture operation and the resulting economic and environmental impacts at the power plant and electric grid levels. This study investigates the costs and benefits of flexible CO2 capture in a framework of a carbon-constrained future where the effects of major energy infrastructure changes on fuel prices are not entirely clear.

Shaping Our Future With Sustainable Energy: A Direction From Young Engineers

2012 ◽  
Author(s):  
Jan Fabian Feldhoff ◽  
Carina Hofmann ◽  
Stefan Hübner ◽  
Jan Oliver Kammesheidt ◽  
Martin Kilbane ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Energy Demand ◽  
Power Plants ◽  
Sustainable Energy ◽  
Energy System ◽  
Local Context ◽  
Global Energy ◽  
Sustainable Energy System ◽  
The U.S

It is broadly accepted that current energy systems should become more sustainable in both a global and local context. However, setting common goals and shared objectives and determining the appropriate means by which to get there is the subject of heavy debate. Therefore, the American Society of Mechanical Engineers (ASME) and the German Association of Engineers (VDI) initiated a joint project aimed at providing a young engineers’ perspective to the global energy conversation. The young engineer project teams set a common goal of assembling a completely sustainable energy system for the U.S. and Germany by 2050. This includes not only the electricity market, but the overall energy system. Based on the current global energy paradigm, a completely sustainable energy system seems very ambitious. However, multiple analyses show that this path is possible and would in the medium to long run not only be desirable, but also competitive in the market. This future ‘energy puzzle’ consists of many important pieces, and the overall picture must be shaped by an overarching strategy of sustainability. Besides the many detailed pieces, four main critical issues must be addressed by engineers, politicians and everybody else alike. These challenges are: i) Rational use of energy: This uncomfortable topic is rather unappealing to communicate, but is a key issue to reduce energy demand and to meet the potentials of renewable energy carriers. ii) Balancing of electricity demand and generation: This is a challenge to the electricity markets and infrastructures that are currently designed for base-load, mainly fossil power plants. The overall mix of renewable energy generation, storage technologies, grid infrastructure, and power electronics will decide how efficient and reliable a future energy system will be. iii) Cost efficiency and competitiveness: It is a prerequisite for industrialized countries to stay competitive and to establish RE in the market. Developing economic technologies while at the same time establishing a strong RE market is the secret of success. iv) Acceptance of the system and its consequences: The best energy strategy cannot be realized without broad public acceptance for it. Therefore, the understanding of the energy technologies and an objective discussion must be promoted — without old fashioned emotionalizing of certain risks. The paper will present details on the four mentioned aspects, compare the situations between the U.S. and Germany, and propose solutions for appropriate political frame conditions to achieve a sustainable energy system.

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