Impact of thermal plant cycling on the cost-optimal composition of a regional electricity generation system

Journal article, 2017

A regional cost-minimizing investment model that accounts for cycling properties (i.e., start-up time, minimum load level, start-up cost and emissions, and part-load costs and emissions) is developed to investigate the impact of thermal plant cycling on the cost-optimal composition of a regional electricity generation system. The model is applied to an electricity system that is rich in wind resources with and without accounting for cycling in two scenarios: one with favorable conditions for flexible bio-based generation (Bio scenario); and one in which base load is favored (Base load scenario) owing to high prices for biomass. Both scenarios are subject to a tight cap on carbon dioxide emissions, limiting the investment options to technologies that have low or no carbon emissions. We report that in the Bio scenario, the cost-optimal system is dominated by wind power and flexible bio-based generation, whereas base-load generation dominates the Base load scenario, in line with the assumptions made, and the level of wind power is reduced. In the Base load scenario, 19% of the capacity is cycling-dependent, i.e., for this share of installed capacity, the choice of technology is different if cycling properties are included, compared to a case in which they are omitted. In the Bio scenario, in which flexible bio-based generation is less costly, 9% of the capacity is cycling-dependent. We conclude that it is critical to include cycling properties in investment modeling, to assess investments in thermal generation technologies that compete at utilization times in the range of 2000–5000 h.