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INTRODUCTION
Electricity generation is responsible to a large extent for the climate change all over the world. To reach the sustainable world. power supply the Renewable ratio should be raised and the CO2 emission technologies should be rolled back. The indirect cost of the climate changes appearing later, the harmful effects and the irreversible environment change are expressed by the externality cost. This paper shows a linear programming optimization technique how one can define the optimal portfolio having clear data and targets. Finally we discuss the difficulties of the decision making regarding the power plant constructions.
Optimization
Having known that there are some cloudy targets, that should be reached by constraints and we are going to find the best solution we choose the optimization techniques. Here we seek for Single Objective Optimum (SOO). (SOO). Our objective is to minimization of following three factors :
We used the following fixed data in our calculations (see Table 2). existing power generation capacities enlarging possibilities yearly energy demand (today 40 TWh and 50 TWh in 2020) load factor maximum energy production minimal energy production external cost/TWh CO2 emission/TWh investment cost lifetime
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The different technologies have different investment needs (power plant construction), externality cost and CO2 emission. emission. The common platform is the cost of a power plant generating 1 TWh electricity. The objective function is a mathematical expression that shows the value of the feature to minimize. We have the followings: minimize.
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The second step is to set up the different constraints. The constraints are additional inequalities in the equation system that must be solved (see Fig.1). First we defined an objective function to minimize. This is the total external cost coming from the individual externality of each generation type. The linear programming tool found the solution that meets all the constraints and equation furthermore it produces the minimal externality cost (see Fig 2).
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Externality minimization- The LP Problem Constraints are: minimization1. Maximum quantities in yearly TWh: TWh:
# 1 ) 1 (hydro) + 0 (wind) + 0 (biomass) + 0 (PV) + 0 (geo) + 0 (biogas) + 0 (nuc) + 0 (nuc) (coal) + 0 (gas) <= 2,2 # 2 ) 0 (hydro) + 1 (wind) + 0 (biomass) + 0 (PV) + 0 (geo) + 0 (biogas) + 0 (nuc) + 0 (nuc) (coal) + 0 (gas) <= 2,6 # 3 ) 0 (hydro) + 0 (wind) + 1 (biomass) + 0 (PV) + 0 (geo) + 0 (biogas) + 0 (nuc) + 0 (nuc) (coal) + 0 (gas) <= 2,2 # 4 ) 0 (hydro) + 0 (wind) + 0 (biomass) + 1 (PV) + 0 (geo) + 0 (biogas) + 0 (nuc) + 0 (nuc) (coal) + 0 (gas) <= 0,3 # 5 ) 0 (hydro) + 0 (wind) + 0 (biomass) + 0 (PV) + 1 (geo) + 0 (biogas) + 0 (nuc) + 0 (nuc) (coal) + 0 (gas) <= 0,4 # 6 ) 0 (hydro) + 0 (wind) + 0 (biomass) + 0 (PV) + 0 (geo) + 1 (biogas) + 0 (nuc) + 0 (nuc) (coal) + 0 (gas) <= 1,3 # 7 ) 0 (hydro) + 0 (wind) + 0 (biomass) + 0 (PV) + 0 (geo) + 0 (biogas) + 1 (nuc) + 0 (nuc) (coal) + 0 (gas) <= 29,1 # 8 ) 0 (hydro) + 0 (wind) + 0 (biomass) + 0 (PV) + 0 (geo) + 0 (biogas) + 0 (nuc) + 1 (nuc) (coal) + 0 (gas) <= 9,9 # 9 ) 0 (hydro) + 0 (wind) + 0 (biomass) + 0 (PV) + 0 (geo) + 0 (biogas) + 0 (nuc) + 0 (nuc) (coal) + 1 (gas) <= 31,5 Total energy is 40 TWh # 10 ) 1 (hydro) + 1 (wind) + 1 (biomass) + 1 (PV) + 1 (geo) + 1 (biogas) + 1 (nuc) + 1 (nuc) (coal) + 1 (gas) <= 40
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On solving the above constraints we find the following externality minimization solution:
Table 6: The power generation portfolio development alternatives by different objective functions:
EXT cost minimization EXT cost minimization INV cost minimization INV cost minimization 50 2,2 0,5 2,2 0 0,4 1,2 16 7 20,5 13 % 17,05 952,4 INV. cost minimization 40 0,22 0,5 1,6 0 0 0 16 5 16,68 5,8 % 13,23, 733,94 CO2 emission minimization CO2 emission minimization 50 2,2 2,6 0 0 0,4 1,3 29,1 0 14,4 13 % 7,77 401,5 165,94
Total energy hydro wind biomass PV geo biogas nuc coal gas REN CO2 External cost Yearly power plant building cost
50 2,2 2,6 2,2 0,3 0,4 1,3 29,1 0 11,9 18 % 7,44 417,35 182,52
50 2,2 2,6 0 0,3 0,4 1,3 29,1 0 14,1 13,6 % 7,65 395,35
TWh TWh TWh TWh TWh TWh TWh TWh TWh TWh % Mt MEUR MEUR
174,56
95,62
112,96
125,70
1304
1403
1383
1401
1540
2128
1882
MEUR
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Instead of the politicians the numerical solution provides a good sustainable solution. The future portfolio is not really sensitive to the amount of energy produced. It is forbidden to build up an energetic monoculture. In the current low cost solution the future operation costs are enormous. The power plant building and operation and externality costs are in the same range.
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Hence we can concludeconclude The total generated energy is 50 TWh. TWh. The renewable ratio is 13%. The total external cost is 401 MEUR. Coal and biomass firing is stopped. The CO2 emission is 7,8 Mt per year. It is almost the half of the present emission. Setting up different objective functions we get different optimal power mixes. All are optimal by a Single Objective (see Table 6.). The 6.). demonstration above shows This methodology is appropriate for the qualitative strategy definition.
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The optimisation provides the mathematically optimal solution regarding a preference. We always start form the existing situation and take into account the development possibility. Fig. 17. shows e.g. that We should not run any coal fired unit if we want to really decrease the CO2. There is enough non CO2 emittive capacities (externality and CO2 minimization) On the other side if we want to minimize the investment cost into the power plant (mix) than we must run this type of plants with high load factor, and we can build more gas and coal plant (minimal investment today maximal external cost in the future). The nuclear, wind and hydro capacity plays important role in the externality minimum scenarios.
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Fig. 18. shows that the yearly total cost of the fossil based scenario costs more than the renewable generation solution. It comes from the high fuel cost (gas) and externality costs. From the optimization we can present other results, too. Figure 19. shows the cost efficiency of the power plant development: If we had 1 MEUR it is enough to Construct this amount of built in power capacity the cheapest is the gas and coal fired plant (green column). If we take into account only the investment only into the construction, we must build more and more gas based plant. But if we count the lifecycle operation (fuel) and externality costs, this is the worst solution!
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Construct and generate this amount of energy (operation cost ~ fuel cost) (red column) We can generate more energy from hydro, geothermal biogas and nuclear sources. The gas is the most expensive! In the long term planning hydro, geothermal biogas and nuclear (!) solutions are fitting to the relevant criteria. If we pay the externality we get the previous result (blue column).
These calculations demonstrate that the rough SOO produces really distinct scenarios so it is not recommendable to use only the cheapest OR smallest emission version.
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As conclusion we can state that The CO2 minimum and external cost minimization produces recommendable scenarios The simple cost minimization implies huge CO2 emission The gas (and oil) fired plants are cheap to build but expensive to run for the fuel cost and CO2 production The wind generation is welcome All portfolios contain hydro generation The bulk central biomass firing is not the part of optimal mix All the alternatives contain nuclear generation (do not forget that any other pumped storage plant raises 26 the external costs)
More detailed optimization with exact input data provides real results. We recommend this method for the national planning level too.
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The decision about a new power plant construction (yes/no or how large, etc.) is often made in the STEPLE frame:
Social (Employment; Right to energy access; Social mission; value of human positions - bureaucracy; etc.) Technological (Security of supply; Quality of energy; Efficiency of production and usage; Integration) Economic (Costs; End price of the energy; Growth rate of the economy; Profitability, ROI; Accumulation of the investment/development; Lifetime of the assets; etc.) Political (Role of the state decision/subventions; Priority of energy supply; National interests; etc.)
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Legislation (Number of the rules; Controlled competition; Entry barriers; Corruption factor; Cooperative work between the players; etc.) Environmental (Greenhouse effect EMISSION; Used/wasted materials; Area destruction; Ecological destruction; Energy resources; etc.)
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Conclusion
In the fight for the sustainable industrialized age the energy industry has no good position. It is responsible for one third of the CO2 emission and we cannot expect any change in the short future (growth of energy need, small unit measure of the renewable generation forms, relatively high direct costs). We have shown that the technologies and its emissions are well known so by a clear mathematical optimization we could plan the optimal power mix. Also there are many CO2 decreasing technologies, as the raising the energy usage and generation efficiency, trapping the exhausted CO2 or changing the generation portfolio to non fossil fuels.
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All the energy generation technologies have disadvantages but the decision space is wider than the simple short term profit maximization. The politicians should maximize the long term advantages (or at least to minimize the harmful effects) taking into account the long term external cost.
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References
Lee, W., Scott W., (2000). Distributed power generation: planning and evaluation - MarcelDekker, ISBN: 978-0-8247-0336-3 Lee, K., El Sharkawi, M. (2008). Modern heuristic optimization techniques, Wiley & Sons, ISBN: 978-0-471-45711-4 Patel, M. (2006). Wind and Solar Power Systems: Design Analysis, CRC press, ISBN: 978-0-8493-1570-1 Kdr, P. (2009 - I). Storage optimization in a liberalized energy market. Proceedings of 7th International Symposium on Applied Machine Intelligence and Informatics, ISBN 978-1-4244-3801-3Her any, Slovakia, January 30-31, 2009 Kdr, P. (2009 - II). Multi Objective Optimization of Smart Grid Structure, Proceedings of 15th International Conference on Intelligent Systems Application to Power Systems, ISBN 978-1-4244-5097-8, Curitiba, Brasil, November 8-12, 2009
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