On Techno-economic Evaluation of Wind-based DG

On Techno-economic Evaluation of Wind-based DG PDF

Author: Mohammed Hamdan Hamed Albadi

Publisher:

Published: 2010

Total Pages: 162

ISBN-13:

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The growing interest in small-scale electricity generation located near customers, known as Distributed Generation (DG), is driven primarily by emerging technologies, environmental regulations and concerns, electricity market restructuring, and growing customer demand for increased quality and reliability of the electricity supply. Wind turbines are one of the renewable DG technologies that have become an important source of electricity in many parts of the world. Wind power can be used in many places to provide a viable solution to rising demand, energy security and independence, and climate change mitigation. This research aims broadly at facilitating the integration of wind-based DG without jeopardizing the system's economics and reliability. To achieve this goal, the thesis tackles wind power from three perspectives: those of the policy maker, the investor, and the system operator. Generally, the economic viability of a project is determined within the framework of relevant policies. Therefore, these policies influence the decisions of potential investors in wind power. From this perspective, chapters 3 and 4 investigate the influence of policies on the economic viability of wind-based DG projects. In chapter 3, the role of Ontario's taxation and incentive policies in the economic viability of wind-based DG projects is investigated. In this study, the effects of provincial income taxes, capital cost allowances, property taxes, and relevant federal incentives are considered. Net Present Value (NPV) and Internal Rate of Return (IRR) for different scenarios are used to assess the project's viability under the Ontario Standard Offer Program (SOP) for wind power. In chapter 4, the thesis proposes the use of wind power as a source of electricity in a new city being developed in the Duqm area of Oman, where no policies supporting renewable energy exist. The study shows that the cost of electricity produced by wind turbines is higher than that of the existing generation system, due to the subsidized prices of domestically available natural gas. However, given high international natural gas prices, the country's long-term Liquefied Natural Gas (LNG) export obligations, and the expansion of natural gas-based industries, investments in wind power in Duqm can be justified. A feed-in tariff and capital cost allowance policies are recommended to facilitate investments in this sector. From a wind-based DG investor's perspective, the optimal selection of wind turbines can make wind power more economical, as illustrated in chapters 5 and 6. In chapter 5, the thesis presents a new generic model for Capacity Factor (CF) estimation using wind speed characteristics at any site and the power performance curve parameters of any pitch-regulated wind turbine. Compared to the existing model, the proposed formulation is simpler and results in more accurate CF estimation. CF models can be used by wind-based DG investors for optimal turbine-site matching applications. However, in chapter 6, the thesis demonstrates that using CF models as the sole basis for turbine-site matching applications tends to produce results that are biased towards higher towers but do not include the associated costs. Therefore, a novel formulation for the turbine-site matching problem, based on a modified CF formulation that does include turbine tower height, is introduced in chapter 6. The proposed universal Turbine-Site Matching Index (TSMI) also includes the effects of turbine rated power and tower height on the initial capital cost of wind turbines. Chapter 7 tackles wind power from a power system operator's perspective. Despite wind power benefits, the effects of its intermittent nature on power systems need to be carefully examined as penetration levels increase. In this chapter, the thesis investigates the effects of different temporal wind profiles on the scheduling costs of thermal generation units. Two profiles are considered: synoptic-dominated and diurnal-dominated variations of aggregated wind power. To simulate wind profile impacts, a linear mixed-integer unit commitment problem is formulated in a GAMS environment. The uncertainty associated with wind power is represented using a chance constrained formulation. The simulation results illustrate the significant impacts of different wind profiles on fuel saving benefits, startup costs, and wind power curtailments. In addition, the results demonstrate the importance of the wide geographical dispersion of wind power production facilities to minimize the impacts of network constraints on the value of the harvested wind energy and the amount of curtailed energy.

A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies

A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies PDF

Author: Walter Short

Publisher:

Published: 2005

Total Pages: 96

ISBN-13: 9781410221056

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A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies provides guidance on economic evaluation approaches, metrics, and levels of detail required, while offering a consistent basis on which analysts can perform analyses using standard assumptions and bases. It not only provides information on the primary economic measures used in economic analyses and the fundamentals of finance but also provides guidance focused on the special considerations required in the economic evaluation of energy efficiency and renewable energy systems.

Small is Profitable

Small is Profitable PDF

Author: Amory B. Lovins

Publisher: Routledge

Published: 2020-11-27

Total Pages: 398

ISBN-13: 1134258747

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Today's electricity industry - large power stations feeding a nationwide grid - will soon be a thing of the past. This book explains why and what will replace it - decentralized and distributed electrical resources which can be up to 10 times as economically valuable. The authors - all leading experts in the field - explain very clearly and thoroughly all the benefits, so the engineers will understand the economic advantages and the investors will understand the engineering efficiencies. Here's what industry experts are saying about Small is Profitable... 'A tour-de-force and a goldmine of good ideas. It is going to have a stunning impact on thinking about electricity.' Walter C. Patterson, Senior Research Fellow, Royal Institute of International Affairs, London. 'An amazing undertaking - incredibly ambitious yet magnificently researched and executed.' Dr. Shimon Awerbuch, Senior Advisor, International Energy Agency, Paris. 'Outstanding...You have thought of some [benefits] I never considered...A great resource for the innovation in energy services that will have to take place for us to have a sustainable future.' Dr. Carl Weinberg, Weinberg Associates, former Research Director, PG&E. 'This is a brilliant synthesis and overview with a lot of original analytics and insights and a very important overall theme. I think it is going to have a big impact.' Greg Kats, Principal, Capital E LLC, former Finance Director for Efficiency and Renewable Energy, U.S. Department of Energy. 'E. F. Schumacher would be proud of this rigorous extension of his thesis in Small is Beautiful. It shows how making systems the right size can make them work better and cost less. Here are critical lessons for the new century: technologies tailored to the needs of people, not the reverse, can improve the economy and the environment.' Dr. Daniel Kammen, Professor of Energy and Society and of Public Policy, University of California, Berkeley. 'Small is Profitable creates an unconventional but impeccably reasoned foundation to correctly assign the costs and true benefits of distributed energy systems. It has become an indispensable tool for modelling distributed energy systems benefits for us.' Tom Dinwoodie, CEO and Chairman, PowerLight Corporation. 'A Unique and valuable contribution to the distributed energy industry...Small Is Profitable highlights the societal benefits of distributed resources, and will be a helpful guide to policymakers who wish to properly account for these benefits in the marketplace.' Nicholas Lenssen, Senior Director, Primen. 'This book will shift the electric industry from the hazards of overcentralization toward the new era where distributed generation will rule.' Steven J. Strong, President, Solar Design Associates, Inc. 'Readers will understand why distributed resources are poised to fundamentally alter the electric power system. Its comprehensive review of the benefits of distributed resources [is] an important part of my library.' Dr. Thomas E. Hoff, President, Clean Power Research. 'The most comprehensive treatise on distributed generation.... Great job and congratulations.' Howard Wenger, Principal, Pacific Energy Group '..[D]ensely packed with information and insights...goes a long way to demonstrate that the former paradigm of electric power supply no longer makes sense.' Prof. Richard Hirsh, University of Vermont, Leading historian of the electric power sector. 'Amory Lovins was already the world's most original and influential thinker on the future of energy services in general and electricity systems in particular. This remarkable book is a very worthy addition to an extraordinary legacy.' Ralph Cavanagh, Energy Co-Director, Natural Resources Defense Council. 'This is a book every utility professional should have on the bookshelf.' Dr Peter S. Fox-Penner, Principal and Chairman of the Board, the Brattle Group, former Principal Deputy Assistant Secretary of Energy.

Proceedings of the 6th International Conference on Industrial Engineering (ICIE 2020)

Proceedings of the 6th International Conference on Industrial Engineering (ICIE 2020) PDF

Author: Andrey A. Radionov

Publisher: Springer Nature

Published: 2021-03-31

Total Pages: 1296

ISBN-13: 3030548147

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This book highlights recent findings in industrial, manufacturing and mechanical engineering, and provides an overview of the state of the art in these fields, mainly in Russia and Eastern Europe. A broad range of topics and issues in modern engineering are discussed, including the dynamics of machines and working processes, friction, wear and lubrication in machines, surface transport and technological machines, manufacturing engineering of industrial facilities, materials engineering, metallurgy, control systems and their industrial applications, industrial mechatronics, automation and robotics. The book gathers selected papers presented at the 6th International Conference on Industrial Engineering (ICIE), held in Sochi, Russia in May 2020. The authors are experts in various fields of engineering, and all papers have been carefully reviewed. Given its scope, the book will be of interest to a wide readership, including mechanical and production engineers, lecturers in engineering disciplines, and engineering graduates.

Handbook of Distributed Generation

Handbook of Distributed Generation PDF

Author: Ramesh Bansal

Publisher: Springer

Published: 2017-03-07

Total Pages: 813

ISBN-13: 3319513435

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This book features extensive coverage of all Distributed Energy Generation technologies, highlighting the technical, environmental and economic aspects of distributed resource integration, such as line loss reduction, protection, control, storage, power electronics, reliability improvement, and voltage profile optimization. It explains how electric power system planners, developers, operators, designers, regulators and policy makers can derive many benefits with increased penetration of distributed generation units into smart distribution networks. It further demonstrates how to best realize these benefits via skillful integration of distributed energy sources, based upon an understanding of the characteristics of loads and network configuration.

Economics of Electricity

Economics of Electricity PDF

Author: Anna Cretì

Publisher: Cambridge University Press

Published: 2019-05-30

Total Pages: 369

ISBN-13: 1107185653

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Explains the economics of electricity at each step of the supply chain: production, transportation and distribution, and retail.

Distributed Generation Capabilities of the National Energy Modeling System

Distributed Generation Capabilities of the National Energy Modeling System PDF

Author:

Publisher:

Published: 2003

Total Pages: 5

ISBN-13:

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This report describes Berkeley Lab's exploration of how the National Energy Modeling System (NEMS) models distributed generation (DG) and presents possible approaches for improving how DG is modeled. The on-site electric generation capability has been available since the AEO2000 version of NEMS. Berkeley Lab has previously completed research on distributed energy resources (DER) adoption at individual sites and has developed a DER Customer Adoption Model called DER-CAM. Given interest in this area, Berkeley Lab set out to understand how NEMS models small-scale on-site generation to assess how adequately DG is treated in NEMS, and to propose improvements or alternatives. The goal is to determine how well NEMS models the factors influencing DG adoption and to consider alternatives to the current approach. Most small-scale DG adoption takes place in the residential and commercial modules of NEMS. Investment in DG ultimately offsets purchases of electricity, which also eliminates the losses associated with transmission and distribution (T & D). If the DG technology that is chosen is photovoltaics (PV), NEMS assumes renewable energy consumption replaces the energy input to electric generators. If the DG technology is fuel consuming, consumption of fuel in the electric utility sector is replaced by residential or commercial fuel consumption. The waste heat generated from thermal technologies can be used to offset the water heating and space heating energy uses, but there is no thermally activated cooling capability. This study consists of a review of model documentation and a paper by EIA staff, a series of sensitivity runs performed by Berkeley Lab that exercise selected DG parameters in the AEO2002 version of NEMS, and a scoping effort of possible enhancements and alternatives to NEMS current DG capabilities. In general, the treatment of DG in NEMS is rudimentary. The penetration of DG is determined by an economic cash-flow analysis that determines adoption based on the n umber of years to a positive cash flow. Some important technologies, e.g. thermally activated cooling, are absent, and ceilings on DG adoption are determined by some what arbitrary caps on the number of buildings that can adopt DG. These caps are particularly severe for existing buildings, where the maximum penetration for any one technology is 0.25 percent. On the other hand, competition among technologies is not fully considered, and this may result in double-counting for certain applications. A series of sensitivity runs show greater penetration with net metering enhancements and aggressive tax credits and a more limited response to lowered DG technology costs. Discussion of alternatives to the current code is presented in Section 4. Alternatives or improvements to how DG is modeled in NEMS cover three basic areas: expanding on the existing total market for DG both by changing existing parameters in NEMS and by adding new capabilities, such as for missing technologies; enhancing the cash flow analysis but incorporating aspects of DG economics that are not currently represented, e.g. complex tariffs; and using an external geographic information system (GIS) driven analysis that can better and more intuitively identify niche markets.

Evaluation Framework and Tools for Distributed Energy Resources

Evaluation Framework and Tools for Distributed Energy Resources PDF

Author:

Publisher:

Published: 2003

Total Pages: 73

ISBN-13:

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The Energy Information Administration's (EIA) 2002 Annual Energy Outlook (AEO) forecast anticipates the need for 375 MW of new generating capacity (or about one new power plant) per week for the next 20 years, most of which is forecast to be fueled by natural gas. The Distributed Energy and Electric Reliability Program (DEER) of the Department of Energy (DOE), has set a national goal for DER to capture 20 percent of new electric generation capacity additions by 2020 (Office of Energy Efficiency and Renewable Energy 2000). Cumulatively, this amounts to about 40 GW of DER capacity additions from 2000-2020. Figure ES-1 below compares the EIA forecast and DEER's assumed goal for new DER by 2020 while applying the same definition of DER to both. This figure illustrates that the EIA forecast is consistent with the overall DEER DER goal. For the purposes of this study, Berkeley Lab needed a target level of small-scale DER penetration upon which to hinge consideration of benefits and costs. Because the AEO2002 forecasted only 3.1 GW of cumulative additions from small-scale DER in the residential and commercial sectors, another approach was needed to estimate the small-scale DER target. The focus here is on small-scale DER technologies under 500 kW. The technology size limit is somewhat arbitrary, but the key results of interest are marginal additional costs and benefits around an assumed level of penetration that existing programs might achieve. Berkeley Lab assumes that small-scale DER has the same growth potential as large scale DER in AEO2002, about 38 GW. This assumption makes the small-scale goal equivalent to 380,000 DER units of average size 100 kW. This report lays out a framework whereby the consequences of meeting this goal might be estimated and tallied up. The framework is built around a list of major benefits and a set of tools that might be applied to estimate them. This study lists some of the major effects of an emerging paradigm shift away from central station power and towards a more dispersed and heterogeneous power system. Seventeen societal effects of small-scale DER are briefly summarized. Each effect is rated as high, medium or low, on three different scales that will help determine the optimal social investment. The three scales are: the magnitude of the economic benefit; the likelihood that the benefit can be monetized in efficient markets, i.e. internalized; and how tractable it might be to quantify each benefit analytically. Some of the modeling tools that may be used to estimate these effects are described in the Appendix.