Optimized Integration of Renewable Energy Technologies Into Jordan's Power Plant Portfolio

Jordan has experienced a significant increase of peak load and annual electricity demand within the last years due to economic development and population growth. The experienced growth rates are expected to continue during the next decades, making large investments in new power plant capacity necessary. Additionally, when gas supply from Egypt was interrupted several times and crude oil world market prices increased simultaneously, recent years have shown painfully that a power supply exclusively based on fossil fuel imports is subject to a very high risk and can have a strong negative impact on the national budget. Electricity-sector authorities are therefore looking for suitable solutions to keep up with the increasing electricity demand, to make Jordan more independent from fossil fuel imports, and to provide electricity at reasonable prices in the future. This paper presents a methodology for the optimized integration of renewable energy (RE) technologies into Jordan's existing power plant portfolio. The core of the methodology is the mixed integer linear optimization program REMix-CEM, developed at the German Aerospace Center (DLR), which optimizes capacity expansion and unit commitment of RE and conventional power generation technologies simultaneously. After describing Jordan's electricity sector and the available RE resources, the developed methodology and the results are presented. The paper shows that by the year 2022, Jordan could generate at least 47% of its electricity demand by a well-balanced mix of concentrating solar power, utility-scale photovoltaics, and onshore wind power. This scenario would maintain the security of electricity supply, absorb present growth rates of power generation costs, and make Jordan significantly more independent of fossil fuel imports.     

Assessing green energy growth in Nepal with a hydropower-hydrogen integrated power grid model

The involvement of green hydrogen in energy transformation is getting global attention. This assessment examines the hydrogen production and its utilization potential in one of the hydropower-rich regions, Nepal under various demand growth and technology intervention scenarios by developing a power grid model of 52 nodes and 68 transmission lines operating at an hourly time-step. The model incorporates a grid-connected hydrogen storage system as well as charging stations for electric and hydrogen vehicles. The least-costly pathways for power grid expansion at the nodal and provincial levels are identified through optimization. The results show that 32 GW of installed capacity is required to meet domestic electricity demand and 14 GW more hydropower should be exploited to completely decarbonize the transport sector by 2050. For maintaining 50% shares of hydrogen vehicle in the transport sector and meet government electricity export targets, Nepal requires 5.7 GW, 12 GW and 23 GW of the additional electrolyzer, hydrogen storage tanks and storage-based hydropower capacities respectively. For a given electricity demand, introducing hydrogen systems can reduce the capacity requirements of hydro storage by storing surplus power generated from pondage run-of-the-river and run-of-the-river hydropower during the rainy season and using it in the dry season.     

Power system decarbonisation with Global Energy Interconnection – a case study on the economic viability of international transmission network in Australasia

The electric energy system in Indonesia is undergoing with the challenges of fast-increasing electricity demand, carbon constraints, and rising costs. Using our model of the Australian and Indonesian electrical grids (either separately or interconnected) that incorporates operational flexibility in capacity expansion planning, we first show that meeting the projected demand for Java and Bali—the main Indonesian grid, with 100% locally integrated renewables by 2050 would be challenging. However, a submarine high-voltage DC (HVDC) link connecting Indonesia’s Java-Bali power grid to the Australian National Electricity Market (NEM) grid through the Northern Territory would help alleviate this situation, given Australia’s abundant renewable energy resources. Then, our model reveals that the Australian NEM could also profit from additional renewables if connected to the Northern Territory through a ground HVDC transmission line to gather intermittent wind and solar generation, which would be curtailed otherwise if unused by Indonesia through the submarine link. Despite the expensiveness of long HVDC links, the wholesale electricity cost of the integrated 100% renewable Australasia power system could be reduced by over 16%, from $AUD177/MWh with only local renewables to $AUD148/MWh with integrated HVDC transmission. The model retrieved the optimal international HVDC link with capacity of 43.8 GW, and the optimal regional HVDC transmission line with a capacity of 5.5 GW. To the best of our knowledge, this is the first detailed model on power system decarbonisation planning for both Australian NEM and Indonesian Java-Bali power grid considering HVDC interconnections.     

Measuring the competitiveness benefits of a transmission investment policy: The case of the Alberta electricity market

Transmission expansions can increase the extent of competition faced by wholesale electricity suppliers with the ability to exercise unilateral market power. This can cause them to submit offer curves closer to their marginal cost curves, which sets market-clearing prices closer to competitive benchmark price levels. These lower wholesale market-clearing prices are the competitiveness benefit consumers realize from the transmission expansion. This paper quantifies empirically the competitiveness benefits of a transmission expansion policy that causes strategic suppliers to expect no transmission congestion. Using hourly generation-unit level offer, output, market-clearing price and congestion data from the Alberta wholesale electricity market from January 1, 2009 to July 31, 2013, an upper and lower bound on the hourly consumer competitiveness benefits of this transmission policy is computed. Both of these competitiveness benefits measures are economically significant, which argues for including them in transmission planning processes for wholesale electricity markets to ensure that all transmission expansions with positive net benefits to electricity consumers are undertaken.     

If you build it,he will come: Anticipative power transmission planning

Like in the film Field of Dreams, the sentence “if you build it, he will come” also applies in power systems. In this sense, if a transmission planner suggests building some lines in anticipation of generation capacity investments, then it can induce generation companies to invest in a more socially efficient manner. In this paper, we solve for the optimal way of doing this anticipative power transmission planning. Inspired in the proactive transmission planning model proposed by Sauma and Oren (2006) we formulate a mixed integer linear programming optimization model that integrates transmission planning, generation investment, and market operation decisions and propose a methodology to solve for the optimal transmission expansion. Contrary to the proactive methodology proposed by Sauma and Oren (2006), our model solves the optimal transmission expansion problem anticipating both generation investment and market clearing. We use the marginalist theory with production cost functions inversely related to the installed capacity in a perfectly competitive electricity market and we find all possible generation expansion pure Nash equilibria. We illustrate our results using 3-node and 4-node examples.     

Challenges to China's transition to a low carbon electricity system

We examine the challenges to China's transition to a low carbon electricity system, in which renewable energy would play a significant role. China's electricity system currently lacks the flexibility in planning, operations, and pricing to respond to conflicting pressures from demand growth, rising costs, and environmental mandates in a way that simultaneously maintains reliability, decarbonizes the system, and keeps prices within acceptable bounds. Greater flexibility crucially requires the ability to more systematically and transparently manage and allocate costs. This will require re-orientating sector institutions still rooted in central planning, and strengthening independent regulation. Some of the necessary changes require fundamental political and legal reforms beyond the scope of energy policy. However, the system's flexibility can still be increased through the development of traditional planning and regulatory tools and approaches, such as an avoided cost basis for energy efficiency investments, more integrated planning to improve the coordination of generation, transmission, and demand-side investments, and a transparent ratemaking process. The judicious application of OECD electricity sector experience and skills can support these developments.     

Turkey’s short-term gross annual electricity demand forecast by fuzzy logic approach

This paper aims to forecast Turkey's short-term gross annual electricity demand by applying fuzzy logic methodology while general information on economical, political and electricity market conditions of the country is also given. Unlike most of the other forecast models about Turkey's electricity demand, which usually uses more than one parameter, gross domestic product (GDP) based on purchasing power parity was the only parameter used in the model. Proposed model made good predictions and captured the system dynamic behavior covering the years of 1970–2014. The model yielded average absolute relative errors of 3.9%. Furthermore, the model estimates a 4.5% decrease in electricity demand of Turkey in 2009 and the electricity demand growth rates are projected to be about 4% between 2010 and 2014. It is concluded that forecasting the Turkey's short-term gross electricity demand with the country's economic performance will provide more reliable projections. Forecasting the annual electricity consumption of a country could be made by any designer with the help of the fuzzy logic procedure described in this paper. The advantage of this model lies on the ability to mimic the human thinking and reasoning.     

A decision support tool for the analysis of pricing,investment and regulatory processes in a decentralized electricity market

After the liberalization of the electricity generation industry, capacity expansion decisions are made by multiple self-oriented power companies. Unlike the centralized environment, decision-making of market participants is now guided by price signal feedbacks and by an imperfect foresight of the future market conditions (and competitor actions) that they will face. In such an environment, decision makers need to better understand long-term dynamics of the supply and demand sides of the power market. In this study, a system dynamics model is developed, to better understand and analyze the decentralized and competitive electricity market dynamics in the long run. The developed simulation model oversees a 20-year planning horizon; it includes a demand module, a capacity expansion module, a power generation module, an accounting and finance module, various competitors, a regulatory body and a bidding mechanism. Many features, singularities and tools of decentralized markets, such as; capacity withholding, enforced divestment, long-term contracts, price-elastic demands, incentives/disincentives, are also incorporated into the model. Public regulators and power companies are potential users of the model, for learning and decision support in policy design and strategic planning. Results of scenario analysis are presented to illustrate potential use of the model.     

How much have electricity shortages hampered China's GDP growth?

Based on an econometric analysis of the annual growth data for China's GDP and electricity generation from 1953 to 2010, we find that electricity generation growth Granger causes GDP growth, but not vice versa. We also find that the GDP elasticity of electricity generation is about 0.6, implying that a 1% increase in China's electricity generation growth would increase GDP growth by 0.6%. While Deng's reform raised China's GDP growth rate by about 5% per year, it did not alter the GDP elasticity of electricity generation. Hence, an obvious strategy to promote China's economic growth would be accelerating electricity generation expansion. Rapidly adding thermal generation units, however, could have large-scale, adverse environmental impacts. We therefore support China's 2011 five-year plan, which calls for expanding investments in renewable energy, conservation and energy efficiency as well as improving China's integrated electricity planning and cost-based pricing decisions.     

Decarbonizing global power supply under region-specific consideration of challenges and options of integrating variable renewables in the REMIND model

We present two advances in representing variable renewables (VRE) in global energy-economy-climate models: accounting for region-specific integration challenges for eight world regions and considering short-term storage. Both advances refine the approach of implementing residual load duration curves (RLDCs) to capture integration challenges. In this paper we derive RLDCs for eight world regions (based on region-specific time series for load, wind and solar) and implement them into the REMIND model. Therein we parameterize the impact of short-term storage using the highly-resolved model DIMES. All RLDCs and the underlying region-specific VRE time series are made available to the research community. We find that the more accurate accounting of integration challenges in REMIND does not reduce the prominent role of wind and solar in scenarios that cost-efficiently achieve the 2 °C target. Until 2030, VRE shares increase to about 15–40% in most regions with limited deployment of short-term storage capacities (below 2% of peak load). The REMIND model's default assumption of large-scale transmission grid expansion allows smoothening variability such that VRE capacity credits are moderate and curtailment is low. In the long run, VRE become the backbone of electricity supply and provide more than 70% of global electricity demand from 2070 on. Integration options ease this transformation: storage on diurnal and seasonal scales (via flow batteries and hydrogen electrolysis) and a shift in the non-VRE capacity mix from baseload towards more peaking power plants. The refined RLDC approach allows for a more accurate consideration of system-level impacts of VRE, and hence more robust insights on the nature of power sector decarbonization and related economic impacts.     

Towards Electricity for All

The Indian power sector has grown to a large size in the last 60 years after the country's independence in 1947, and it has opened up with unbundling into distinctive entities of generation, transmission, and distribution. With both public and private participation, reliable load forecasting, planning, and system operation ensuring security to meet the demand at each instant have become the utmost necessities in the context of having electricity for all by the end of current five- year plan (March 2012). In this context adequacy as well as reliability of existing transmission systems have assumed a great significance in the entire power sector. Beyond this period, with continued growth in the economy, projection in power demand and commensurate addition in generation capacity also call for large network expansion for the Indian National Grid as a whole. Enhancement of voltage level of transmission, both with HVAC as well as HVDC, for hauling power from surplus to deficit regions poses challenges that need to be overcome through adoption of technologies.     

Past,present and future status of electricity in Turkey and the share of energy sources

With a young and growing population, low per capita electricity consumption, rapid urbanization and—until recently—strong economic growth, Turkey for nearly two decades has been one of the fastest growing power markets in the world. Prior to Turkey's recent severe economic difficulties, Turkey's electricity consumption had been growing much faster than its production. It forces Turkey make a rapid action to supply electricity demand. Installed power generation capacity in Turkey reached about 31.84 GW in 2002. However, the growth in electricity generation has remained below the electricity demand, which made Turkey a net importer of electricity since, 1996. Projections show that Turkey's electricity consumption would continue over the next 15 years.     

Risk management of energy system for identifying optimal power mix with financial-cost minimization and environmental-impact mitigation under uncertainty

An interval-stochastic risk management (ISRM) method is launched to control the variability of the recourse cost as well as to capture the notion of risk in stochastic programming. The ISRM method can examine various policy scenarios that are associated with economic penalties under uncertainties presented as probability distributions and interval values. An ISRM model is then formulated to identify the optimal power mix for the Beijing's energy system. Tradeoffs between risk and cost are evaluated, indicating any change in targeted cost and risk level would yield different expected costs. Results reveal that the inherent uncertainty of system components and risk attitude of decision makers have significant effects on the city's energy-supply and electricity-generation schemes as well as system cost and probabilistic penalty. Results also disclose that import electricity as a recourse action to compensate the local shortage would be enforced. The import electricity would increase with a reduced risk level; under every risk level, more electricity would be imported with an increased demand. The findings can facilitate the local authority in identifying desired strategies for the city's energy planning and management in association with financial-cost minimization and environmental-impact mitigation.     

The prospective of coal power in China: Will it reach a plateau in the coming decade?

Coal power holds the king position in China's generation mix and has resulted in ever-increasing ecological and environmental issues; hence, the development of the electric power sector is confronted with a series of new challenges. China has recently adopted a new economic principle of the “new economic normal,” which has a large effect on the projection electricity demand and power generation planning through 2020. This paper measures electricity demand based upon China's social and economic structure. The 2020 roadmap presents China's developing targets for allocating energy resources to meet new demands, and the 2030 roadmap is compiled based upon an ambitious expansion of clean energy sources. Results show that electricity demand is expected to reach 7500 TWh in 2020 and 9730 TWh in 2030. Coal power is expected to reach its peak in 2020 at around 970 GW, and will then enter a plateau, even with a pathway of active electricity substitution in place.     

Investment decisions in electricity transmission in Argentina: The role of earmarked funds and gas pipeline expansions

This paper reexamines the problem of collective decisions of investment in electricity transmission in Argentina in the nineties. We summarize our previous results on the existence of a fundamental flaw in the evaluation of willingness-to-pay and on the need to consider the votes of groups of generators integrated through common ownership rather than individual generators. We discuss the workings of the SALEX account for financing expansions and confirm that the imperfect identification of voters could affect the evaluation of expansion projects. We also study an integrated model that considers two alternatives to electricity transmission: gas transmission and the location of generators; we show that location in the demand node voting against expansions in electricity transmission could be justified to maximize profits.     

A review on the pattern of electricity generation and emission in Indonesia from 1987 to 2009

The level of energy demand plays a fundamental role in today's society. It is a vital input in supporting the physical and social development of a country, as well as national economic growth. Looking at the energy demand scenario in present time, the global energy consumption is likely to grow faster than the population growth across the world. Like any other energy sectors, electricity demand has significantly increased in Indonesia over the past years. Currently, there are six types of power plants in the country. The main sources of electrical energy are generated using the gas turbines, steam turbines, combined cycles, geothermal, diesel engine and hydro-powers. Most of Indonesia's power plants are using fossil fuel for electricity generation. Substantial growth in domestic energy demand, however, would be a major challenge for Indonesia's energy supply sector in the future. Over the past decade, thermal power plants generated about 86.69% of electricity and about 13.31% was generated by renewable energy such as hydro-power and geothermal in 2009. The purpose of this study is to chronicle and show a clear view of 23 years trend of Indonesia's electricity generation industry. Furthermore, the capacity of power generation installed and electricity generation from 1987 to 2009 has been gathered for this study. The total pollutant emissions and emission per unit electricity generation for each type of power plants have been also calculated using emission factors. Also, the pattern of electricity generation and emission has been presented. The results show that the implementation and contribution of combined cycle power plants should be increased together with renewable energy and natural gas which are recommended to reduce greenhouse gas emission.     

Strategies for regional integration of electricity supply in West Africa

To improve peoples’ living conditions in West African countries national governments have to considerably reinforce the electricity supply infrastructures. Rehabilitation of the existing installations and construction of new power generation facilities and transmission lines require substantial resources which are tremendously difficult to raise due to the region's specific economical and political conditions. This paper examines the long-term prospects for integrated development of the regional electricity industry and evaluates its advantages by using PLANELEC-Pro, a “bottom-up” electricity system expansion planning optimisation model. The evolution of regional electricity market is analysed on the basis of two strategies. The “autarkical” strategy consists in adequate expansion of national power generation systems and the exchanges of electricity between the countries in sub-zones. Another approach referred to as “integration” strategy is recommended in this article. It leads to fast retirement of the obsolete power plants and the integration of new investment projects at the level of whole West African sub-region. The main finding is that the regional integration strategy is capable to bring about additional benefits in terms of reduced capital expenditures, lower electricity supply cost and the enhanced system's reliability compared to the autarkical strategy.     

Electricity demand in Kazakhstan

Properties of electricity demand in transition economies have not been sufficiently well researched mostly due to data limitations. However, information on the properties of electricity demand is necessary for policy makers to evaluate effects of price changes on different consumers and obtain demand forecasts for capacity planning. This study estimates Kazakhstan's aggregate demand for electricity as well as electricity demand in the industrial, service, and residential sectors using regional data. Firstly, our results show that price elasticity of demand in all sectors is low. This fact suggests that there is considerable room for price increases necessary to finance generation and distribution system upgrading. Secondly, we find that income elasticity of demand in the aggregate and all sectoral models is less than unity. Of the three sectors, electricity demand in the residential sector has the lowest income elasticity. This result indicates that policy initiatives to secure affordability of electricity consumption to lower income residential consumers may be required. Finally, our forecast shows that electricity demand may grow at either 3% or 5% per year depending on rates of economic growth and government policy regarding price increases and promotion of efficiency. We find that planned supply increases would be sufficient to cover growing demand only if real electricity prices start to increase toward long-run cost-recovery levels and policy measures are implemented to maintain the current high growth of electricity efficiency.     

Optimal electricity system planning in a large hydro jurisdiction: Will British Columbia soon become a major importer of electricity?

An energy-system model incorporating generation, transmission and integrated management of hydroelectric reservoirs in British Columbia (BC) is used to explore approaches to meeting load projections to 2040. The model includes electricity trade between BC, Alberta and the US, the influence of a carbon emissions tax, contributions from the aging gas-fired Burrard Thermal plant and production from a proposed dam called “Site C” on the Peace River in northern BC. Model results suggest: If load increases as anticipated at 1.4%/year, BC will need to import significant amounts of electricity within two decades. Operating the Burrard plant at full capacity to 2025 and bringing Site C on line in 2020 delays the need to import by only 6 years, while realizing net electricity export sales of $5.9 billion by 2040. Bringing Site C on line but imposing a tax of $30/t of CO₂ emitted on gas-fired generation causes immediate closure of the Burrard plant on economic grounds and reduces net export revenue to $0.63 billion by 2040. BC has options, however, including demand side management and development of additional generation capacity. In the absence of these measures, imported power may be more significant in BC's electricity future.     

The impact of ICT investment and energy price on industrial electricity demand: Dynamic growth model approach

The authors investigate the effects of information and communications technology (ICT) investment, electricity price, and oil price on the consumption of electricity in South Korea's industries using a logistic growth model. The concept electricity intensity is used to explain electricity consumption patterns. An empirical analysis implies that ICT investment in manufacturing industries that normally consume relatively large amounts of electricity promotes input factor substitution away from the labor intensive to the electricity intensive. Moreover, results also suggest that ICT investment in some specific manufacturing sectors is conducive to the reduction of electricity consumption, whereas ICT investment in the service sector and most manufacturing sectors increases electricity consumption. It is concluded that electricity prices critically affect electricity consumption in half of South Korea's industrial sectors, but not in the other half, a finding that differs somewhat from previous research results. Reasons are suggested to explain why the South Korean case is so different. Policymakers may find this study useful, as it answers the question of whether ICT investment can ultimately reduce energy consumption and may aid in planning the capacity of South Korea's national electric power.