Oil backout and the price of electricity

In this paper, we examine the probable effect on electricity rates of an overbuilding strategy for several different types of utility companies. A computer simulation model is used to project the price of electricity that a hypothetical, oil-dependent, investor-owned, electric utility would have to charge in order to recover its annual costs and earn the allowed return on investment. The final results take the form of penalty/cost curves showing the values of the oil backout cost ratio for which overbuilding would lead to higher/lower rates.     

A multiple objective decision making model for energy generation portfolio under fuzzy uncertainty: Case study of large scale investor-owned utilities in Florida

The objective of this paper is to present a methodology to evaluate the viability of developing solar photovoltaic projects for large investor-owned utilities. By taking into account the trade-off between the cost per kWh of electricity generation and total risk for an investor-owned utility, a multi-objective model of the energy generation portfolios is developed. The decision making model can determine the proportion of different energy generation sources in an investor-owned utility portfolio that reduces risk while providing the lowest cost per kWh of electricity generation possible. In order to measure the risk of the investor-owned utility for energy portfolio selection, an investigation of possible dangers and failures of energy generation portfolios is made and 9 main failure modes are identified. The failure mode and effects analysis is employed to calculate the risk priority numbers for each risk. To deal with the uncertainties of the levelized cost of electricity and risk levels of failure modes, the fuzzy method is introduced and an equivalent crisp model is derived which is then solved by employing a multiple objective particle swarm optimization algorithm. The analysis for four large scale investor-owned utilities in Florida is presented to highlight the performance of the developed optimization method.     

A market for renewable energy credits in the Indian power sector

Electricity generation from renewable energy sources in India has been promoted through a host of fiscal policies and preferential tariff for electricity produced from the same. The fiscal policies include tax incentives and purchase of electricity generated through renewable energy sources. The enactment of the Electricity Act 2003 (the Act) has lent further support to renewable energy by stipulating purchase of a certain percentage of the power procurement by distribution utilities from renewable energy sources. The renewable portfolio obligation as well as the feed-in tariff for power procurement has been specified by a number of State Electricity Regulatory Commissions (SERCs) for the respective state under their jurisdiction. A feed-in tariff determined through a cost-plus approach under a rate of return framework lacks incentive for cost minimisation and does not encourage optimal utilisation of renewable energy resources in the country. Such regulatory provisions differ across states.The prevalent practice of fixing a renewable portfolio obligation along with cost-based feed-in tariffs disregards economic efficiency. The paper proposes nationally tradable renewable energy credits scheme for achieving the targets set by the respective SERCs as renewable portfolio obligation. This would reduce the cost of compliance to a renewable portfolio obligation, and would encourage efficient resource utilisation and investment in appropriate technologies. The paper highlights its advantages and implementation issues. This paper discusses regulatory developments for promotion of renewable energy in various Indian states. The paper also identifies a number of issues related to regulations concerning renewable portfolio obligation.     

Electricity from biomass in the European union—With or without biomass import

The European Union has set up indicative targets for its 15 Member States to supply 22.1% of their total electricity consumption using renewable energy resources by 2010. This paper compares two ways to achieve target compliance—either with import of biomass from countries outside the EU or without. The ADMIRE REBUS model combines cost data for electricity producing renewable energy technologies with data on the renewable energy resources available in EU and assesses the effect of the various national support policies for green electricity in the EU countries. The major finding of the study is that increased imports of low-cost biomass will significantly reduce the cost of target compliance, but would hamper the use of energy crops and further development of wind power within the EU. Despite this, increased importation of biomass can be the cost-reducing factor making the target realisable, which would justify promotion of such trade.     

Quality uncertainty and the market for renewable energy: Evidence from German consumers

Consumers can choose from a wide range of electricity supply contracts, including green power options. Electricity produced from renewable energy involves information asymmetries. With a sample of more than 2,000 German electricity consumers, we tested the proposition of a “lemon market” for renewable energy in a discrete choice experiment. Specifically, we found that, compared to investor-owned firms, additional willingness-to-pay for renewable energy is approximately double when offered by cooperatives or municipally-owned electricity utilities. Consumers who are experienced with switching suppliers have an additional willingness-to-pay of one Eurocent per kilowatt hour for cooperatives and two Eurocents for public enterprises. The results demonstrate that organizational transformation in dynamically-changing electricity markets is not only driven by political initiatives but also by consumers' choices on the market. Public policy may reduce information asymmetries by promoting government labeling of green energy products.     

State-scale evaluation of renewable electricity policy: The role of renewable electricity credits and carbon taxes

We have developed a state-scale version of the MARKAL energy optimization model, commonly used to model energy policy at the US national scale and internationally. We apply the model to address state-scale impacts of a renewable electricity standard (RES) and a carbon tax in one southeastern state, Georgia. Biomass is the lowest cost option for large-scale renewable generation in Georgia; we find that electricity can be generated from biomass co-firing at existing coal plants for a marginal cost above baseline of 0.2–2.2 cents/kWh and from dedicated biomass facilities for 3.0–5.5 cents/kWh above baseline. We evaluate the cost and amount of renewable electricity that would be produced in-state and the amount of out-of-state renewable electricity credits (RECs) that would be purchased as a function of the REC price. We find that in Georgia, a constant carbon tax to 2030 primarily promotes a shift from coal to natural gas and does not result in substantial renewable electricity generation. We also find that the option to offset a RES with renewable electricity credits would push renewable investment out-of-state. The tradeoff for keeping renewable investment in-state by not offering RECs is an approximately 1% additional increase in the levelized cost of electricity.     

Should policy-makers allocate funding to vehicle electrification or end-use energy efficiency as a strategy for climate change mitigation and energy reductions? Rethinking electric utilities efficiency programs

In order to reduce greenhouse gas emissions in the United States by an order of magnitude, a portfolio of mitigation strategies is needed. Currently, many utilities pursue energy efficiency programs. We study a case where utilities could choose whether to allocate their energy efficiency budget to either end-use efficiency or vehicle electrification as a means to reduce CO₂ emissions. We build a decision space that displays the conditions under which utilities should pursue either strategy. To build such decision space, assumptions are needed on how consumers respond to electric vehicle incentives, and what would be the baseline vehicle selected by consumers if no incentives were in place. Since these two aspects are highly uncertain, we treat them parametrically: if consumers are replacing a conventional vehicle with a PHEV, utility incentive programs to induce PHEV adoption appear to be cost-effective for a wide range of efficiency program costs and grid emissions factors.     

Network externality perspective of feed-in-tariffs (FIT) instruments—Some observations and suggestions

Existing energy policy frameworks revolving around the acceleration of deployment¹ of renewable energy technology can be broadly classified as the quantity vs. price approach. With this brief viewpoint, this paper suggests another perspective of viewing these instruments in terms of a more fundamental basis: whether the deployment in capacity is in terms of a cost minimization approach or a network externality approach. We suggest that the generic price or feed in tariff (FIT) approach in subsidizing renewable electricity generation and associated income would create a bandwagon or self-propagation effect among users rendering the renewable energy technology spreads like a software or information technology. Our objective is to raise awareness of this technology dynamics oriented perspective in renewable deployment supplementing the conventional installation subsidies perspective. We hope that it would inspire more empirical works and studies relating to the policy implications of this viewpoint.     

Greenhouse gas emissions reduction by use of wind and solar energies for hydrogen and electricity production: Economic factors

This study addresses economic aspects of introducing renewable technologies in place of fossil fuel ones to mitigate greenhouse gas emissions. Unlike for traditional fossil fuel technologies, greenhouse gas emissions from renewable technologies are associated mainly with plant construction and the magnitudes are significantly lower. The prospects are shown to be good for producing the environmentally clean fuel hydrogen via water electrolysis driven by renewable energy sources. Nonetheless, the cost of wind- and solar-based electricity is still higher than that of electricity generated in a natural gas power plant. With present costs of wind and solar electricity, it is shown that, when electricity from renewable sources replaces electricity from natural gas, the cost of greenhouse gas emissions abatement is about four times less than if hydrogen from renewable sources replaces hydrogen produced from natural gas. When renewable-based hydrogen is used in a fuel cell vehicle instead of gasoline in a IC engine vehicle, the cost of greenhouse gas emissions reduction approaches the same value as for renewable-based electricity only if the fuel cell vehicle efficiency exceeds significantly (i.e., by about two times) that of an internal combustion vehicle. It is also shown that when 6000 wind turbines (Kenetech KVS-33) with a capacity of 350 kW and a capacity factor of 24% replace a 500-MW gas-fired power plant with an efficiency of 40%, annual greenhouse gas emissions are reduced by 2.3 megatons. The incremental additional annual cost is about $280 million (US). The results provide a useful approach to an optimal strategy for greenhouse gas emissions mitigation.     

Model‐based approach for planning renewable energy transition in a resource‐constrained electricity system—A case study from India

Globally, electricity systems are going through transitions. The contributions from renewable energy‐based power generation, both in installed capacity and electricity generation, are moving from marginal to the mainstream. India is not an exception; it is aggressively pursuing this transition by fixing steep targets for renewable capacity additions. While the cost of renewable energy sources is expected to fast reach grid parity, the policy interventions play a critical role in ramping up the efforts to support the proposed investments in renewable capacity and renewable electricity generation. In this respect, this research attempts to analyze the effectiveness of renewable energy policies such as Renewable Purchase Obligation (RPO) and Renewable Energy Certificate mechanisms in tapping the renewable energy potential in India. We propose a mixed‐integer linear programming model‐based approach to evaluate the effectiveness of the above interventions in the Indian context. The model is developed and validated as a low carbon electricity planning tool to optimally meet the dynamic electricity demand and RPO targets as well as to manage the unmet total electricity demand and RPO targets. The Karnataka state electricity system (a state in south India) is chosen as a case study. The results suggest that Karnataka Electricity System is moving toward a sustainable renewable energy future even without any support from nonsolar Renewable Energy Certificate policy. However, policy interventions are critical for optimally utilizing the solar generation capacity.     

System-level energy efficiency is the greatest barrier to development of the hydrogen economy

Current energy research investment policy in New Zealand is based on assumed benefits of transitioning to hydrogen as a transport fuel and as storage for electricity from renewable resources. The hydrogen economy concept, as set out in recent commissioned research investment policy advice documents, includes a range of hydrogen energy supply and consumption chains for transport and residential energy services. The benefits of research and development investments in these advice documents were not fully analyzed by cost or improvements in energy efficiency or green house gas emissions reduction. This paper sets out a straightforward method to quantify the system-level efficiency of these energy chains. The method was applied to transportation and stationary heat and power, with hydrogen generated from wind energy, natural gas and coal. The system-level efficiencies for the hydrogen chains were compared to direct use of conventionally generated electricity, and with internal combustion engines operating on gas- or coal-derived fuel. The hydrogen energy chains were shown to provide little or no system-level efficiency improvement over conventional technology. The current research investment policy is aimed at enabling a hydrogen economy without considering the dramatic loss of efficiency that would result from using this energy carrier.     

The potential contribution of renewable energy to electricity supply in Saudi Arabia

Saudi Arabia has enormous oil resources. At the same time, the Kingdom has other resources, notably solar energy that may figure in future supplies of electricity. In the past several years, considerable operational experience has been gained throughout the world in the implementation of renewable energy systems of types that would be relevant to the Kingdom. This paper reviews the nature of this experience and applies it in a quantitative assessment of the costs, savings, and environmental benefits of renewable energy conducted as a part of an electric utility integrated resource planning (IRP) project in the Kingdom. Integrated resource planning is an approach that systematically evaluates potential electricity supply and demand-side resources with the aim of developing a plan that provides energy services to customers at the least societal cost. The analysis summarized in this paper has shown that, when some of the non-market benefits of renewable energy are also included in the assessment of their overall costs and benefits, a supply expansion plan that includes wind and solar resources can provide energy services for the Kingdom at a lower societal cost than a “Business-as-usual” plan utilizing only fossil-fueled generating resources.     

Demand reduction in the UK—with a focus on the non-domestic sector

A demand reduction strategy is considered in the context of the UK and in the light of the UK Government's 2006 Energy Review. This paper discusses how a mechanism—a Demand Reduction Obligation (DRO)—can be established to achieve radical energy demand reduction targets in electricity and gas use in the industrial, commercial and public administration sectors. A DRO would require energy suppliers to invest in energy-saving measures so as to reduce energy demand in these sectors. The investment for this activity would be funded by energy suppliers who would increase prices in order to cover the cost of achieving the carbon reductions. Public opinion surveys suggest that a large proportion of the public would prefer to support demand reduction measures compared to other energy options. It may be practical to deliver carbon emission reductions equivalent to around 30% of emissions from the UK electricity sector over a 15-year period through a broad-based demand reduction strategy. Demand reduction is considered in the context of an assessment of costs and resources available from other low carbon options including renewable energy and nuclear power.     

Environmental benefits of energy efficiency and renewable energy in Saudi Arabia's electric sector

This paper provides an evaluation of the potential environmental impacts of electric system expansion in the Kingdom of Saudi Arabia. Environmental concerns are important to consider because they represent costs to society that are not typically reflected in the price that consumers pay for electricity. In past analyses of electric expansion options in Saudi Arabia, the tendency has been to stress the direct financial costs of expanding electricity generation, transmission, and distribution infrastructure without characterizing the environment impacts of building and operating the expanded electricity system in monetary terms. Emerging national and global environmental concerns, however, suggest that an expansion of the methods traditionally used for electricity resource planning and selection to include environmental considerations would greatly benefit the Kingdom. The criteria by which resource plans are evaluated can readily be broadened to address environmental and other concerns. As part of an illustrative Integrated Resource Planning (IRP) effort undertaken by a team of Saudi utility planners and international consultants, an expanded IRP framework was used to assess the environmental costs and benefits of various approaches to meeting electricity demand projections in Saudi Arabia. The results show that making use of renewable energy and energy efficiency resources to provide energy services to the electricity consumers of Saudi Arabia can provide significant environmental benefits for the Kingdom.     

Integration of solar thermal for improved energy efficiency in low-temperature-pinch industrial processes

Solar thermal systems have the potential to provide renewable industrial process heat and are especially suited for low pinch temperature processes such as those in the food, beverage, and textile sectors. When correctly integrated within an industrial process, they can provide significant progress towards both increased energy efficiency and reduction in emissions. However, the integration of renewable solar energy into industrial processes presents a challenge for existing process integration techniques due to the non-continuous nature of the supply. A thorough pinch analysis study of the industrial process, taking in to account non-continuous operating rates, should be performed to evaluate the utility demand profile. Solar collector efficiency data under variable climatic conditions should also be collected for the specific site. A systematic method of combining this information leads to improved design and an optimal operating strategy. This approach has been applied to a New Zealand milk powder plant and benefits of several integration strategies, including mass integration, are investigated. The appropriate placement of the solar heat is analogous to the placement of a hot utility source and an energy penalty will be incurred when the solar thermal system provides heat below the pinch temperature.     

Multi-objective optimization of large-scale grid-connected photovoltaic-hydrogen-natural gas integrated energy power station based on carbon emission priority

Establishing integrated energy systems is conducive for improving renewable energy utilization and promoting decarbonization. In this study, a grid-connected photovoltaic-hydrogen-natural gas integrated energy system is established to explore the effects of the configuration of the integrated energy system on its environment and economy. A multi-objective hierarchical optimization allocation model is developed, and an optimization strategy with carbon emission superior to total cost is established for the first time. Additionally, the economy, environment, and energy efficiency of the system are analyzed. A comparative study is performed using a strategy considering that the total cost is superior to carbon emission. A case study reveals that the levelized cost of electricity increases by 62.24%, levelized carbon emission of power decreases by 74.19%, and energy efficiency increases by 8.51%, as compared with those of the comparison strategy. Thus, the carbon emission of the system is reduced considerably, and the energy efficiency is improved. Although the cost of the system optimized by the proposed strategy is higher, it is economically feasible. Further analyses indicate that extending the grid-connected period would be infeasible, as it might increase the total cost and carbon emission of the system. Moreover, sensitivity analyses show that increasing the natural gas price or carbon tax base price will not reduce the carbon emission of the system.     

An efficient technique‐based distributed energy management for hybrid MG system: A hybrid QOCSOS‐RF technique

This paper proposes an efficient hybrid approach–based energy management strategy (EMS) for grid‐connected microgrid (MG) system. The primary objective of the proposed technique is to reduce the operational electricity cost and enhanced power flow between the source side and load side subject to power flow constraints. The proposed control scheme is a consolidated execution of both the random forest (RF) and quasi‐oppositional‐chaotic symbiotic organisms search algorithm (QOCSOS), and it is named as QOCSOS‐RF. Here, the QOCSOS can have the capacity to enhance the underlying irregular arrangements and joining to a superior point in the pursuit space. Likewise, the QOCSOS has prevalence in nonlinear frameworks due over the way that can insert and extrapolate the arbitrary information with high exactness. Here, the required load demand of the grid‐connected MG system is continuously tracked by the RF technique. The QOCSOS optimized the perfect combination of the MG with the consideration of the predicted load demand. Furthermore, in order to reduce the influence of renewable energy forecasting errors, a two‐strategy for energy management of the MG is employed. At that point, proposed model is executed in MATLAB/Simulink working platform, and the execution is assessed with the existing techniques.     

Renewable electricity as a differentiated good? The case of the Republic of Korea

This paper examines the willingness for Korean consumers to pay a premium for renewable electricity under a differentiated good framework by applying the contingent valuation method. Korean consumers have been required to pay for their use of renewable electricity as of 2012. First, we find that Korean consumers recognise renewable electricity as a differentiated good from traditional electricity generated from fossil fuels or nuclear energy. The mean willingness to pay to use renewable electricity is USD 1.26 per month. Second, we confirm the existence of perfect substitution relationships among variant renewable technologies, which suggests that Korean consumers do not perceive them as differentiated goods. One reason for this perception is that Korean consumers are more inclined to favour economic feasibility over sustainability or the availability of the resource stock when choosing between renewable technology types. In sum, we can say that Korean consumers recognise renewable electricity as a differentiated good but that they do not differentiate between variant renewable technologies. Thus, the imposition of the cost of renewable electricity on consumers in the form of increased electricity charges would be acceptable to consumers as long as any price rise properly reflects their preferences.     

Re-envisioning the role of hydrogen in a sustainable energy economy

This paper addresses the fundamental question of where hydrogen might fit into a global sustainable energy strategy for the 21st century that confronts the three-pronged challenge of irreversible climate change, uncertain oil supply, and rising pollution. We re-envision the role of hydrogen at national and international strategic levels, relying entirely on renewable energy and energy efficiency. It is suggested the time for an exclusive ‘hydrogen economy’ has passed, since electricity and batteries would be used extensively as well. Yet hydrogen would still play a crucial role: in road and rail vehicles requiring a range comparable to today’s petrol and diesel vehicles; in coastal and international shipping; in air transport; and for longer-term seasonal storage on electricity grids relying mainly on renewables. Hydrogen fuel cell vehicles are proposed where medium and long distance trips are required, with plug-in battery electric vehicles reserved for just short trips. A hierarchy of spatially-distributed hydrogen production, storage and distribution centers relying on local renewable energy sources and feedstocks would be created to limit the required hydrogen pipeline network to the main metropolitan areas and regions by complementary use of electricity as a major energy vector. Bulk hydrogen storage would provide the strategic energy reserve to guarantee national and global energy security in a world relying increasingly on renewable energy. It is recommended that this vision next be applied to specific countries by conducting detailed energy-economic-environmental modeling to quantify its net benefits.     

储能技术的研究开发现状及展望

储能系统在稳定电网、利用可再生能源方面起着重要作用。介绍了各种储能方式及其特点．综述了大型储能技术的研究开发状况,其中氧化还原液流电池具有成本低、效率高、寿命长等优点,商业化前景看好。