Economic cost-benefit analysis for power system operations with environmental considerations

Alberto J. Lamadrid, Daniel L. Shawhan, Carlos E. Murillo-Sanchez, Ray D. Zimmerman, Yujia Zhu, Daniel Tylavsky, Andrew Kindle, Zamiyad Dar

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

This paper presents a model aimed at evaluating the effects of integrating Renewable Energy Sources (RES) in the electricity system, from the perspective of a system operator, taking into account the cost of Carbon Dioxide (C02) emissions. The model is especially suited to analyze the interactions of energy storage systems (ESS) with conventional generation sources, in the framework of reliable operation (n - 1). One of the most important consequences of high levels of RES in the network is the variability induced on the existing generation fleet, and the wear-and-tear derived from ramping conventional units to counteract the changes in RES output. Our Security-Constrained Optimal Power Flow (SC-OPF) optimizes the injection into the network, including the cost of changes between periods for a given horizon. The results show that the main benefits derived from ESS are the reduction in the provision of ancillary services from conventional generation sources. These services are instead provided by ESS units. This is an important additional revenue stream for storage system owners, especially in the face of the cost of capital of these resources.

Original languageEnglish (US)
Title of host publication2015 IEEE Eindhoven PowerTech, PowerTech 2015
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Print)9781479976935
DOIs
StatePublished - Aug 31 2015
EventIEEE Eindhoven PowerTech, PowerTech 2015 - Eindhoven, Netherlands
Duration: Jun 29 2015Jul 2 2015

Other

OtherIEEE Eindhoven PowerTech, PowerTech 2015
CountryNetherlands
CityEindhoven
Period6/29/157/2/15

Keywords

  • Energy Storage Systems
  • Ramping costs
  • Renewable Generation

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment
  • Electrical and Electronic Engineering
  • Energy Engineering and Power Technology

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  • Cite this

    Lamadrid, A. J., Shawhan, D. L., Murillo-Sanchez, C. E., Zimmerman, R. D., Zhu, Y., Tylavsky, D., Kindle, A., & Dar, Z. (2015). Economic cost-benefit analysis for power system operations with environmental considerations. In 2015 IEEE Eindhoven PowerTech, PowerTech 2015 [7232802] Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/PTC.2015.7232802