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Economical flexibility options for integrating fluctuating wind energy in power systems: The case of China
KTH, School of Engineering Sciences in Chemistry, Biotechnology and Health (CBH), Chemical Engineering, Energy Processes. School of Business, Society and Engineering, Mälardalen University, SE-72123 Västerås, Sweden.ORCID iD: 0000-0003-0300-0762
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2018 (English)In: Applied Energy, ISSN 0306-2619, E-ISSN 1872-9118, Vol. 228, p. 426-436Article in journal (Refereed) Published
Abstract [en]

The inherent stochastic nature of wind power requires additional flexibility during power system operation. Traditionally, conventional generation is the only option to provide the required flexibility. However, the provision of the flexibility from the conventional generation such as coal-fired generating units comes at the cost of significantly additional fuel consumption and carbon emissions. Fortunately, with the development of the technologies, energy storage and customer demand response would be able to compete with the conventional generation in providing the flexibility. Give that power systems should deploy the most economic resources for provision of the required operational flexibility, this paper presents a detailed analysis of the economic characteristics of these key flexibility options. The concept of “balancing cost” is proposed to represent the cost of utilizing the flexible resources to integrate the variable wind power. The key indicators are proposed respectively for the different flexible resources to measure the balancing cost. Moreover, the optimization models are developed to evaluate the indicators to find out the balancing costs when utilizing different flexible resources. The results illustrate that exploiting the potential of flexibility from demand side management is the preferred option for integrating variable wind power when the penetration level is below 10%, preventing additional fuel consumption and carbon emissions. However, it may require 8% of the customer demand to be flexible and available. Moreover, although energy storage is currently relatively expensive, it is likely to prevail over conventional generation by 2025 to 2030, when the capital cost of energy storage is projected to drop to approximately $ 400/kWh or lower. 

Place, publisher, year, edition, pages
Elsevier Ltd , 2018. Vol. 228, p. 426-436
Keywords [en]
Balancing cost, Economical, Flexibility options, Wind power, Carbon, Electric utilities, Energy storage, Stochastic systems, Additional flexibilities, Conventional generation, Economic characteristics, Operational flexibility, Optimization models, Power system operations, Costs, carbon emission, demand-side management, economic conditions, fuel consumption, integrated approach, power generation, resource use, China
National Category
Environmental Engineering
Identifiers
URN: urn:nbn:se:kth:diva-236631DOI: 10.1016/j.apenergy.2018.06.066ISI: 000447479400034Scopus ID: 2-s2.0-85049089570OAI: oai:DiVA.org:kth-236631DiVA, id: diva2:1262897
Note

Export Date: 22 October 2018; Article; CODEN: APEND; Correspondence Address: Ding, Y.; College of Electrical Engineering, Zhejiang UniversityChina; email: yiding@zju.edu.cn; Funding details: 017YFB0903400; Funding details: 51577167, NSFC, National Natural Science Foundation of China; Funding details: 51537010, NSFC, National Natural Science Foundation of China; Funding details: NSFC, National Natural Science Foundation of China; Funding text: The research is supported by the National Key Research and Development Program of China under Grant 017YFB0903400, and national natural science foundation of China ( NSFC ) under Grant 51577167 and 51537010 . QC 20181113

Available from: 2018-11-13 Created: 2018-11-13 Last updated: 2018-11-13Bibliographically approved

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Yan, Jinyue

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