IDEAS home Printed from https://ideas.repec.org/p/ris/ewikln/2020_005.html
   My bibliography  Save this paper

Optimal Dispatch of a Coal-Fired Power Plant with Integrated Thermal Energy Storage

Author

Listed:
  • Çam, Eren

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

Abstract

As the share of intermittent renewable electricity generation increases, the remaining fleet of conventional power plants will have to operate with higher flexibility. One of the methods to increase power plant flexibility is to integrate a thermal energy storage (TES) into the water-steam cycle of the plant. TES can provide flexibility and achieve profits by engaging in energy arbitrage on the spot markets and by providing additional power on the control power markets. This paper considers a reference coal-fired power plant with an integrated TES system for the year 2019 in Germany. Optimal dispatch for profit maximisation with TES is simulated on the hourly day-ahead and quarter-hourly continuous intraday markets as well as on the markets for primary (PRL) and secondary (SRL) control power. Analysing the effects of TES round-trip efficiency and storage capacity on dispatch and the profits, I find that smaller TES systems with up to one hour of storage capacity can achieve substantial profits on the PRL market while also realising profits from energy arbitrage on the continuous intraday market. Higher TES round-trip efficiencies can help TES achieve significant profits also on the day-ahead market. The analysis shows that a storage capacity of 2–3 hours is enough to realise most of the energy arbitrage potential, while larger storage capacities can greatly increase TES profits on the SRL market. Small TES systems are found to increase the full load hours of the plant marginally. However, the increase becomes significant with larger storage capacities and can lead to higher CO 2 emissions for the individual plant.

Suggested Citation

  • Çam, Eren, 2020. "Optimal Dispatch of a Coal-Fired Power Plant with Integrated Thermal Energy Storage," EWI Working Papers 2020-5, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 10 Aug 2021.
    • Handle: RePEc:ris:ewikln:2020_005
    as

    Download full text from publisher

    File URL: https://www.ewi.uni-koeln.de/cms/wp-content/uploads/2020/11/EWI_WP_20-05_Optimal_Dispatch_of_a_Coal-Fired_Power_Plant_with_Integrated_Thermal_Energy_Storage_Cam.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Beiron, Johanna & Montañés, Rubén M. & Normann, Fredrik & Johnsson, Filip, 2020. "Combined heat and power operational modes for increased product flexibility in a waste incineration plant," Energy, Elsevier, vol. 202(C).
    2. Knaut, Andreas & Paschmann, Martin, 2017. "Decoding Restricted Participation in Sequential Electricity Markets," EWI Working Papers 2017-5, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 31 Aug 2017.
    3. Scapino, Luca & De Servi, Carlo & Zondag, Herbert A. & Diriken, Jan & Rindt, Camilo C.M. & Sciacovelli, Adriano, 2020. "Techno-economic optimization of an energy system with sorption thermal energy storage in different energy markets," Applied Energy, Elsevier, vol. 258(C).
    4. Hong, Lixuan & Lund, Henrik & Möller, Bernd, 2012. "The importance of flexible power plant operation for Jiangsu's wind integration," Energy, Elsevier, vol. 41(1), pages 499-507.
    5. Kubik, M.L. & Coker, P.J. & Barlow, J.F., 2015. "Increasing thermal plant flexibility in a high renewables power system," Applied Energy, Elsevier, vol. 154(C), pages 102-111.
    6. Zhao, Yongliang & Wang, Chaoyang & Liu, Ming & Chong, Daotong & Yan, Junjie, 2018. "Improving operational flexibility by regulating extraction steam of high-pressure heaters on a 660 MW supercritical coal-fired power plant: A dynamic simulation," Applied Energy, Elsevier, vol. 212(C), pages 1295-1309.
    7. Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2012. "Assessment of utility energy storage options for increased renewable energy penetration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 4141-4147.
    8. Eser, Patrick & Singh, Antriksh & Chokani, Ndaona & Abhari, Reza S., 2016. "Effect of increased renewables generation on operation of thermal power plants," Applied Energy, Elsevier, vol. 164(C), pages 723-732.
    9. Jacek D. Wojcik & Jihong Wang, 2017. "Technical Feasibility Study of Thermal Energy Storage Integration into the Conventional Power Plant Cycle," Energies, MDPI, vol. 10(2), pages 1-19, February.
    10. Zhao, Yongliang & Liu, Ming & Wang, Chaoyang & Li, Xin & Chong, Daotong & Yan, Junjie, 2018. "Increasing operational flexibility of supercritical coal-fired power plants by regulating thermal system configuration during transient processes," Applied Energy, Elsevier, vol. 228(C), pages 2375-2386.
    11. Arcos-Vargas, Ángel & Canca, David & Núñez, Fernando, 2020. "Impact of battery technological progress on electricity arbitrage: An application to the Iberian market," Applied Energy, Elsevier, vol. 260(C).
    12. Bradbury, Kyle & Pratson, Lincoln & Patiño-Echeverri, Dalia, 2014. "Economic viability of energy storage systems based on price arbitrage potential in real-time U.S. electricity markets," Applied Energy, Elsevier, vol. 114(C), pages 512-519.
    13. Richter, Marcel & Oeljeklaus, Gerd & Görner, Klaus, 2019. "Improving the load flexibility of coal-fired power plants by the integration of a thermal energy storage," Applied Energy, Elsevier, vol. 236(C), pages 607-621.
    14. Walawalkar, Rahul & Apt, Jay & Mancini, Rick, 2007. "Economics of electric energy storage for energy arbitrage and regulation in New York," Energy Policy, Elsevier, vol. 35(4), pages 2558-2568, April.
    15. Sioshansi, Ramteen & Denholm, Paul & Jenkin, Thomas & Weiss, Jurgen, 2009. "Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects," Energy Economics, Elsevier, vol. 31(2), pages 269-277, March.
    16. Knaut, Andreas & Obermüller, Frank & Weiser, Florian, 2017. "Tender Frequency and Market Concentration in Balancing Power Markets," EWI Working Papers 2017-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    17. Wolf-Peter Schill & Michael Pahle & Christian Gambardella, 2016. "On Start-up Costs of Thermal Power Plants in Markets with Increasing Shares of Fluctuating Renewables," Discussion Papers of DIW Berlin 1540, DIW Berlin, German Institute for Economic Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brändle, Gregor & Schönfisch, Max & Schulte, Simon, 2020. "Estimating Long-Term Global Supply Costs for Low-Carbon Hydrogen," EWI Working Papers 2020-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 10 Aug 2021.
    2. Núñez, Fernando & Canca, David & Arcos-Vargas, Ángel, 2022. "An assessment of European electricity arbitrage using storage systems," Energy, Elsevier, vol. 242(C).
    3. McPherson, Madeleine & Tahseen, Samiha, 2018. "Deploying storage assets to facilitate variable renewable energy integration: The impacts of grid flexibility, renewable penetration, and market structure," Energy, Elsevier, vol. 145(C), pages 856-870.
    4. Zhao, Yongliang & Liu, Ming & Wang, Chaoyang & Wang, Zhu & Chong, Daotong & Yan, Junjie, 2019. "Exergy analysis of the regulating measures of operational flexibility in supercritical coal-fired power plants during transient processes," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    5. Ikechi Emmanuel, Michael & Denholm, Paul, 2022. "A market feedback framework for improved estimates of the arbitrage value of energy storage using price-taker models," Applied Energy, Elsevier, vol. 310(C).
    6. Beiron, Johanna & Montañés, Rubén M. & Normann, Fredrik & Johnsson, Filip, 2020. "Flexible operation of a combined cycle cogeneration plant – A techno-economic assessment," Applied Energy, Elsevier, vol. 278(C).
    7. Zakeri, Behnam & Syri, Sanna, 2015. "Electrical energy storage systems: A comparative life cycle cost analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 569-596.
    8. McConnell, Dylan & Forcey, Tim & Sandiford, Mike, 2015. "Estimating the value of electricity storage in an energy-only wholesale market," Applied Energy, Elsevier, vol. 159(C), pages 422-432.
    9. Telaretti, E. & Dusonchet, L., 2017. "Stationary battery technologies in the U.S.: Development Trends and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 380-392.
    10. Zhao, Haitao & Jiang, Peng & Chen, Zhe & Ezeh, Collins I. & Hong, Yuanda & Guo, Yishan & Zheng, Chenghang & Džapo, Hrvoje & Gao, Xiang & Wu, Tao, 2019. "Improvement of fuel sources and energy products flexibility in coal power plants via energy-cyber-physical-systems approach," Applied Energy, Elsevier, vol. 254(C).
    11. Yan, Hui & Liu, Ming & Wang, Zhu & Zhang, Kezhen & Chong, Daotong & Yan, Junjie, 2023. "Flexibility enhancement of solar-aided coal-fired power plant under different direct normal irradiance conditions," Energy, Elsevier, vol. 262(PA).
    12. Shcherbakova, Anastasia & Kleit, Andrew & Cho, Joohyun, 2014. "The value of energy storage in South Korea’s electricity market: A Hotelling approach," Applied Energy, Elsevier, vol. 125(C), pages 93-102.
    13. Lin, Boqiang & Wu, Wei & Bai, Mengqi & Xie, Chunping & Radcliffe, Jonathan, 2019. "Liquid air energy storage: Price arbitrage operations and sizing optimization in the GB real-time electricity market," Energy Economics, Elsevier, vol. 78(C), pages 647-655.
    14. Zhang, Shunqi & Liu, Ming & Ma, Yuegeng & Liu, Jiping & Yan, Junjie, 2021. "Flexibility assessment of a modified double-reheat Rankine cycle integrating a regenerative turbine during recuperative heater shutdown processes," Energy, Elsevier, vol. 233(C).
    15. Antweiler, Werner, 2021. "Microeconomic models of electricity storage: Price Forecasting, arbitrage limits, curtailment insurance, and transmission line utilization," Energy Economics, Elsevier, vol. 101(C).
    16. Lin, Boqiang & Wu, Wei, 2017. "Economic viability of battery energy storage and grid strategy: A special case of China electricity market," Energy, Elsevier, vol. 124(C), pages 423-434.
    17. Jianjun Wang & Jikun Huo & Shuo Zhang & Yun Teng & Li Li & Taoya Han, 2021. "Flexibility Transformation Decision-Making Evaluation of Coal-Fired Thermal Power Units Deep Peak Shaving in China," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    18. Wang, Chaoyang & Qiao, Yongqiang & Liu, Ming & Zhao, Yongliang & Yan, Junjie, 2020. "Enhancing peak shaving capability by optimizing reheat-steam temperature control of a double-reheat boiler," Applied Energy, Elsevier, vol. 260(C).
    19. Mercier, Thomas & Olivier, Mathieu & De Jaeger, Emmanuel, 2023. "The value of electricity storage arbitrage on day-ahead markets across Europe," Energy Economics, Elsevier, vol. 123(C).
    20. Fernando N'u~nez & David Canca & 'Angel Arcos-Vargas, 2020. "An assessment of European electricity arbitrage using storage systems," Papers 2010.11912, arXiv.org.

    More about this item

    Keywords

    Coal-fired power plant; flexibility; thermal energy storage; energy arbitrage;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:ewikln:2020_005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sabine Williams (email available below). General contact details of provider: https://edirc.repec.org/data/ewikode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.