Developing large-scale energy storage to alleviate a low-carbon energy bubble

Dunguo Mou and Xiaoping He

Energy Policy, 2019, vol. 132, issue C, 62-74

Abstract: By taking the grid system in Fujian Province as an example, this paper establishes a power market system model to simulate the impact of nuclear and wind power on the system operation. The article employs the method of optimal power flow (OPF) analysis, under a framework of social welfare maximization with close-to-reality thermal power generation cost and technical constraints. The simulation results show that large-scale nuclear power can reduce the level of electricity prices and improve the difference in regional electricity prices; as a result, the thermal power can be in an unfavourable position and therefore undertake peak and load following; meanwhile, the development of large-scale wind power would increase the demand for following of load and valley load. Moreover, the simulation for the operation of the electricity market shows that in the case of electricity oversupply, the thermal power can be deliberately bid at a low price, and the nuclear power would assume the obligation of valley load following, even with the presence of PSHPs in the system; thus, the low-carbon energy can't be fully utilized. In conclusion, the general bidding model in the electricity market cannot be applied to the situation of long-term electricity oversupply.

Keywords: Power system; Electricity market; Low-carbon energy; PSHP; OPF (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:132:y:2019:i:c:p:62-74

DOI: 10.1016/j.enpol.2019.05.004

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