Key Technologies and Economic Analysis of Decentralized Wind Power Consumption: A Case Study in B City, China

Hui Huang, Yingying Du, Shizhong Song and Yanlei Guo
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Hui Huang: School of Management, China University of Mining & Technology (Beijing), Beijing 100083, China
Yingying Du: School of Management, China University of Mining & Technology (Beijing), Beijing 100083, China
Shizhong Song: Science and Technology Innovation Research Center, Collaborative Innovation Research Office, Beijing 100012, China
Yanlei Guo: School of Management, China University of Mining & Technology (Beijing), Beijing 100083, China

Energies, 2020, vol. 13, issue 16, 1-23

Abstract: Wind power technology is developing rapidly in China. Especially in the north of China, decentralized wind power (DWP) has developed rapidly. However, wind curtailment exceeds 4% of the gross generation, which has become an important obstacle restricting the development of DWP in 2019. Technical schemes are effective solutions to promote decentralized wind power consumption (DWPC). Moreover, there are few economic analyses of DWP projects with key technologies. This paper summarizes the typical technical schemes and analyzes the economy of a DWP grid-connected project with typical technical schemes by combining methods of the net present value ( NPV ) and real options (RO). It appears that the DWP project can be profitable with an NPV of about CNY 4.3721 million and an option value of CNY 16.6022 million in the case of a feed-in tariff of 0.34 CNY/kWh. Feed-in tariff and equipment investment costs are the most relevant parameters for economic feasibility according to the sensitivity analysis. Furthermore, 30.73 million kWh connects to the Mengxi grid each year. The project has an annual maximum CO 2 emission reduction of about 31 thousand tons and an SO 2 of about 0.1 thousand tons. In addition, it also realizes fine social benefits, including the support of local residents and the improvement of local new urbanization levels. Finally, this paper puts forward policy suggestions for the development of DWP mainly from an economic point of view.

Keywords: decentralized wind power; wind curtailment; technical schemes; economic analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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