Incorporating cycling costs in generation dispatch program - an economic value stream for energy storage

Abstract

SUMMARY Increased variable generation penetration without reinforcing the power grid with additional flexibility in the form of fast responding reserves necessitates existing conventional generation fleet to undergo cycling operations that are detrimental to its economics and lifespan. This paper presents a systematic methodology to estimate cycling costs related to the ancillary service and start‐up/shutdown operations of various generators. Production costing programs are performed in the Institute of Electrical and Electronics Engineers 24 bus reliability test system to quantify the cycling costs associated with system operation. Two methods are investigated to reduce system cycling costs, namely, incorporating the cycling cost components within the generation offers submitted to the dispatch programs and integration of bulk energy storage. Simulation results were also used to assess the potential of storage projects to earn economic incentive when additional cycling cost components are incorporated within generation offers. Copyright © 2014 John Wiley & Sons, Ltd.

Long‐term impact of variable generation and demand side flexibility on thermal power generation

“…This behaviour could conceivably be different in a larger power system with more interconnections and if other new sources of flexibility were to be considered. The importance to model not only direct start-up costs but also other cycling costs in the unit commitment models has been emphasised in [14][15][16]. A detailed modelling approach was used by Deane et al [17], who analysed the impact of sub-hourly modelling on the cycling of units with the All Island power system for the year 2020.…”

“…The importance to model not only direct start‐up costs but also other cycling costs in the unit commitment models has been emphasised in [14–16]. A detailed modelling approach was used by Deane et al [17], who analysed the impact of sub‐hourly modelling on the cycling of units with the All Island power system for the year 2020.…”