Deep Thermal Power Peak Shaving Compensation Considering Operating Costs and Electricity Revenue

Authors

  • Yiqun Meng Northeast Electric power University, 169 Changchun Road, Jilin, China
  • Guoliang Bian Northeast Electric power University, 169 Changchun Road, Jilin, China
  • Yi Gu State Grid Liaoning Electric Power Co., Ltd, Shenyang, China
  • Chuang Liu Northeast Electric power University, 169 Changchun Road, Jilin, China
  • Bo Hu State Grid Liaoning Electric Power Co., Ltd. Dalian Power Supply Company, Shenyang, China
  • Guiping Zhou State Grid Liaoning Electric Power Co., Ltd, Shenyang, China
  • Huanhuan Luo Liaoning Power Trading Center Co., Ltd, Shenyang, China
  • Yuanzhu Zhao State Grid Liaoning Electric Power Co., LTD. Shenyang Power Supply Company, Shenyang, China
  • Yiming Chang State Grid Liaoning Electric Power Co., LTD. Shenyang Power Supply Company, Shenyang, China
  • Zhonghui Wang State Grid Liaoning Electric Power Co., Ltd. Dalian Power Supply Company, Shenyang, China

DOI:

https://doi.org/10.13052/spee1048-5236.4336

Keywords:

Deep peak shaving, thermal power units, operation costs, compensation method

Abstract

Unlike traditional methods of electricity generation such as thermal power, renewable energy sources like wind power exhibit characteristics of randomness and volatility, leading to unstable power generation. With the continuous increase in grid-connected capacity of renewable energy sources like wind power, the demand for grid peak shaving is on the rise, highlighting the issue of inadequate peak shaving capacity in China’s power system. As a primary source for peak shaving in the country, thermal power units incur significant revenue losses when participating in deep peak shaving, and under the current mechanism, they cannot obtain sufficient compensation for deep peak shaving. In response to these issues, the paper proposes a method for compensating thermal power units for deep peak shaving. Firstly, considering the reduced efficiency of thermal power units during low-load operation, a cost model for the operation of thermal power units is established. Secondly, building upon the existing compensated peak shaving baseline, a method for compensating thermal power units for deep peak shaving is introduced. Finally, using a simulation of a local power grid in Liaoning Province as an example, an analysis of the compensation for thermal power peak shaving and overall profits under the existing mechanism and the proposed mechanism is conducted. The results obtained validate the rationality and effectiveness of the method proposed in the paper, offering insights for the development of a compensation mechanism for thermal power deep peak shaving.

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Author Biographies

Yiqun Meng, Northeast Electric power University, 169 Changchun Road, Jilin, China

Yiqun Meng, male, from Changchun City, Jilin Province, holds a master’s degree in Electrical Engineering from the University of Sydney. He is currently a doctoral candidate at Northeast Electric Power University, undertaking a joint training program at the University of California, San Diego from January 2023 to December 2023. His research focuses on electricity markets and low-carbon optimization operation of power systems.

Guoliang Bian, Northeast Electric power University, 169 Changchun Road, Jilin, China

Guoliang Bian, male, from Linyi City, Shandong Province, is currently a master’s degree candidate in Electrical Engineering at Northeast Electric Power University. His research focuses on electricity markets and low-carbon optimization operation of power systems.

Yi Gu, State Grid Liaoning Electric Power Co., Ltd, Shenyang, China

Yi Gu, male, from Anqing City, Anhui Province, obtained a master’s degree in Power System and Automation from Tsinghua University in 2000. He is a senior engineer and currently serves as the Chief Engineer at State Grid Liaoning Electric Power Co., Ltd. His main research interests include planning, preliminary work, and investment in primary distribution networks.

Chuang Liu, Northeast Electric power University, 169 Changchun Road, Jilin, China

Chuang Liu, male, born in 1985, holds a Ph.D. degree and is a professor. He is a doctoral/master’s supervisor and has been selected as an outstanding young scientific and technological talent in China’s power industry, as well as various other honors and awards. He is currently affiliated with Northeast Electric Power University.

Bo Hu, State Grid Liaoning Electric Power Co., Ltd. Dalian Power Supply Company, Shenyang, China

Bo Hu, Ph.D., senior engineer, obtained his bachelor’s, master’s, and Ph.D. degrees from North China Electric Power University, the Shenyang Institute of Automation, Chinese Academy of Sciences in 1995, 2001, and 2013 respectively. He currently holds the position of Secretary and Deputy General Manager at State Grid Liaoning Electric Power Co., Ltd., Dalian Power Supply Company. His main research direction is power systems and their automation.

Guiping Zhou, State Grid Liaoning Electric Power Co., Ltd, Shenyang, China

Guiping Zhou, Ph.D., senior engineer, obtained his bachelor’s, master’s, and Ph.D. degrees from Dalian University of Technology and the Shenyang Institute of Automation, Chinese Academy of Sciences in 2004, 2007, and 2012 respectively. He currently holds the position of Deputy Section Chief at State Grid Liaoning Electric Power Co., Ltd. His main research direction is power systems and their automation.

Huanhuan Luo, Liaoning Power Trading Center Co., Ltd, Shenyang, China

Huanhuan Luo, male, graduated from Shanghai Jiao Tong University with a bachelor’s degree in Power System and its Automation in 2001. He obtained a master’s degree in Electrical Engineering from Dalian University of Technology in 2009 and a Ph.D. degree in Electrical Engineering from Shenyang University of Technology in 2022. He is currently employed at Liaoning Electric Power Trading Center Co., Ltd. His main research direction is power system operation and power market trading.

Yuanzhu Zhao, State Grid Liaoning Electric Power Co., LTD. Shenyang Power Supply Company, Shenyang, China

Yuanzhu Zhao, female, obtained a master’s degree in Journalism and Communication in 2019. She currently works at State Grid Liaoning Electric Power Co., Ltd., Shenyang Yuhong District Power Supply Branch. Her main research direction is power market marketing.

Yiming Chang, State Grid Liaoning Electric Power Co., LTD. Shenyang Power Supply Company, Shenyang, China

Yiming Chang, female, holds a master’s degree in Power System and its Automation. She currently works at State Grid Liaoning Electric Power Co., Ltd., Shenyang Power Supply Company. Her main research direction is power market marketing.

Zhonghui Wang, State Grid Liaoning Electric Power Co., Ltd. Dalian Power Supply Company, Shenyang, China

Zhonghui Wang, male, obtained a master’s degree in Power System and its Automation from Dalian University of Technology in 2011. He currently works at State Grid Liaoning Electric Power Co., Ltd., Power Dispatch and Control Center. His main research direction is the construction of the electricity spot market and ancillary services market, as well as grid regulation and operation.

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Published

2024-06-14

How to Cite

Meng, Y., Bian, G., Gu, Y., Liu, C., Hu, B., Zhou, G., Luo, H., Zhao, Y., Chang, Y., & Wang, Z. (2024). Deep Thermal Power Peak Shaving Compensation Considering Operating Costs and Electricity Revenue. Strategic Planning for Energy and the Environment, 43(03), 609–640. https://doi.org/10.13052/spee1048-5236.4336

Issue

Section

New Technologies and Strategies for Sustainable Development