Accepted Manuscript Energy conservation, environmental and economic value of the wind power priority dispatch in China Xiaoli Zhao, Suwei Liu, Fengguang Yan, Ziqian Yuan, Zhiwen Liu PII:
S0960-1481(17)30213-6
DOI:
10.1016/j.renene.2017.03.032
Reference:
RENE 8625
To appear in:
Renewable Energy
Received Date: 18 March 2016 Revised Date:
10 February 2017
Accepted Date: 12 March 2017
Please cite this article as: Zhao X, Liu S, Yan F, Yuan Z, Liu Z, Energy conservation, environmental and economic value of the wind power priority dispatch in China, Renewable Energy (2017), doi: 10.1016/ j.renene.2017.03.032. This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.
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Energy Conservation, Environmental and Economic Value of the
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Wind Power Priority Dispatch in China
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Xiaoli Zhao1∗, Suwei Liu2, Fengguang Yan2, Ziqian Yuan1, Zhiwen Liu2
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1 School of Business Administration, China University of Petroleum-Beijing, Beijing, China
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2 School of Economics and Management, North China Electric Power University, Beijing, China
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Abstract: In recent years, the annual curtailment ratio of wind power in China has been
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around 15%. Although the priority dispatch policy for wind power has been put in place
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in the country, it is not well implemented. One of the reasons for this is that wind power
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is viewed by some power system operators as “garbage power” due to its inherent
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intermittency nature. The improvement of social awareness of the value of wind power
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deployment is crucial for the effective implementation of the priority dispatch policy. In
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this paper, we analyze the impact of the priority dispatch of wind power on energy
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conservation and environmental improvement, and then compare the generation cost
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between wind power and coal-fired power while considering environmental
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externalities. We conclude that the energy intensity in the system decreases as the
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proportion of wind power generation increases, and the energy intensity is minimized
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when the proportion reaches 15%-20% provided a small amount of wind power
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curtailment is allowed. Meanwhile, we confirm that the wind power priority dispatch
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has significant positive impacts on environmental improvement. Further, we find that
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wind power generation cost is very close to coal-fired power cost when environmental
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cost is taken into account.
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Keywords: Wind power priority dispatch; Environmental value; Energy conservation;
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Economic cost; China
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Corresponding Author Xiaoli Zhao, School of Business Administration, China University of
Petroleum-Beijing, E-mail:
[email protected] 1
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1 introduction In recent years, China has been troubled by an extensive, severe, and long period of
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haze. Since the beginning of winter 2015, there have been large regions of serious haze
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in China’s northern areas. Beijing’s government has released two times of haze red
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alerts, with the highest level of alert occurring in December 2015. During this time,
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primary and middle school students cannot go to class, some enterprises cannot
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produce, and people cannot conduct their usual travel schedules due to vehicle
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restrictions. Although haze is caused by complicated factors, such as weather and air
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pressure conditions, coal burning is one of the most significant causes. China’s energy
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mix is dominated by coal. According to BP, coal consumption accounted for 66% of the
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total primary energy in China in 2014, well above the worldwide average level of 28%;
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moreover, China’s coal consumption accounted for 50% of worldwide consumption.
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On the other hand, coal used for electricity generation in China is only approximately
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50% of the total coal consumption; in some developed countries, coal used for
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electricity generation is more than 95% of the total electricity generation. Hence, to
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improve China’s environmental quality, two types of substitution are important: one is
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the substitution of electricity for coal and the other is the substitution of renewable
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energy for coal-fired electricity. Among various renewable energies, wind power
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technology is the most mature; hence, wind power is the preferred renewable energy in
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China.
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While wind power in China has seen dramatic growth since the beginning of this
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century, wind power curtailment has occurred since 2010. China’s wind power was 2
ACCEPTED MANUSCRIPT curtailed by 12300 GWh, 20800 GWh, and 16200 GWh in 2011, 2012 and 2013,
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respectively [1-3]; accordingly, the curtailment ratio of wind power in these three years
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was 16%, 20% and 10%, respectively. In 2014, the severe wind power curtailment was
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mitigated by a curtailment ratio of 8%; this was because there was less wind than in
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previous years. As of 2015, the wind power curtailment has become more serious. In
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2015, wind power curtailment in China reached 15%1.
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The Energy Saving Power Generation Dispatch Policy (Trial) issued in 2007
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stipulates that to promote renewable energy grid integration, wind power, solar power,
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and other types of renewable energy that do not have any adjustment ability should
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enjoy priority dispatched. Both the Renewable Energy Law and the Renewable Energy
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Law (revised) promulgated in 2005 and 2009 respectively define the principle of wind
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power priority dispatch. However, the high ratio of wind power curtailment implies that
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the policy of wind power priority dispatch has not been implemented effectively in
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China. There are many factors that are attributed to the difficulty of wind power priority
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dispatch implementation, such as an inadequate grid infrastructure [4] [5], lack of
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flexible power generation plants, a restricted power trade market, and so on [6]. To
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overcome these obstacles, China must realize the value of wind power priority dispatch
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and use this information to improve the mechanism of wind power priority dispatch.
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Although some studies have shown that renewable energy development contributes
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significantly to environmental improvement [7-8], currently, there is still controversy
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Data source: China National Energy Administration: The situation of wind power industry development in 2015. http://www.nea.gov.cn/2016-02/02/c_135066586. 3
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dispatch/development [9-13]. Zhang et al. (2010) argue that the extension of wind
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power generation in a power system will increase the total operating cost in certain
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contexts [9]. Zhang et al. (2011) also illustrate that the power dispatch aimed at
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minimizing wind power curtailment may cause thermal units to significantly deviate
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from their optimal economic operating area, thereby increasing coal consumption in the
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power system [10]. Elliston et al. (2016) evaluated the incremental costs of more
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renewable energy supply and concluded that incremental costs are found to increase
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approximately linearly as the renewable energy share grows from zero to 80% [11].
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Contrary to these three studies, Milligan et al. (2009) stated that wind power integration
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into the grid results in fuel savings and refuted the notion that wind’s variations would
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increase system fuel consumption [12]. Meanwhile, Destek (2016) analyzed the
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relationship between renewable energy consumption and economic growth in newly
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industrialized countries. They argued that renewable energy development causes
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positive or negative impact on GDP in different countries [13].
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The controversy surrounding the impact of the wind power priority dispatch on
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energy consumption and economic cost in a power system affects the understanding of
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the wind power priority dispatch and the effective implementation of this policy, which
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leads to randomness and volatility in the process of implementing the wind power
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priority dispatch. The aim of this study is to analyze the energy conservation,
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environmental value, and economic cost of a wind power priority dispatch in China. We
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will focus on the following three issues: first, the impact of the wind power priority
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the wind power priority dispatch; and third, an economic cost comparison between
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wind power generation and coal-based power generation taking environmental
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externalities into consideration.
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The rest of the paper proceeds as follows: Section 2 summarizes the current
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literature; Section 3 introduces our research methodologies; and Section 4 discusses the
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data that are used. Our results and analyses are presented in the fifth section. Section 6
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concludes the paper with a summary of our main findings and a discussion of policy
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implications.
2 Literature Review
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Along with the rapid development of renewable energy, the optimal power
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dispatch between renewable energy and fossil fuel energy to minimize energy
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consumption/emission reduction/economic costs has recently become a hot research
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topic. Using the “Mixed Integer Programming (MIP)” method to study western
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Denmark, Göransson and Johnson (2009) explored the dispatch strategy that yields the
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lowest system fuel consumption and cost [14]. They found that the start-up time and
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related costs and minimum load level of the power generating units had a significant
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impact on the results. Zhou et al. (2009) used a hybrid particle swarm and interior point
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optimization algorithm with smoothing technology and considered the constraints of up
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and down spinning reserves to analyze the impact factors of a dynamic economic
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dispatch in a wind power integrated system [15]. They concluded that in the context of
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full wind power utilization, the energy consumption in the system could be minimized
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by optimizing the power output of thermal units. Meanwhile, the multi-objectives of expanding wind power deployment,
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mitigating emission/energy consumption, and reducing economic costs is another hot
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topic in research [16-19]. Wu et al. (2010) used a multi-objective differential evolution
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(MODE) algorithm method to study the environmental/economic power dispatch (EED)
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problem with wind power integration [16]. They argued that the multi-objectives of
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increasing wind power deployment, energy conservation and economic cost savings
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could be realized by optimizing the power dispatch model. Based on stochastic
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programming, Long et al. (2011) proposed a short term optimization model that
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integrates hydro-power and thermal power with wind power to analyze the
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optimization of the dispatch strategy while considering energy conservation and
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environmental protection [17]. They concluded that in the context of wind power
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priority dispatch, the goal of reducing energy consumption and pollution emissions in a
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power system can be realized. Zhao et al. (2013) used the GAMS simulation method
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and the real data of the thermal power units, wind power and hydropower generation,
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and load in China’s Liaoning province to conclude that progress in environmental
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improvement could be achieved while simultaneously reducing economic losses
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through a joint environmental and economic dispatch across thermal, wind, and
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hydropower [18]. By stating that the allocation of system generation capacity is highly
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dependent on the values of the reserve cost coefficient, penalty cost coefficient and
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penalty emissions coefficient, Jin et al. (2014) treated the economic environmental
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dispatch (EED) incorporating wind power as a multi-objective stochastic programming
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problem [19]. In summary, most current studies focused on the power dispatch optimization of
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wind power, thermal power and hydro power; the impact of wind power integration on
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the energy consumption/environment and economic cost in the power system has
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largely been ignored. We have only found very limited studies that compare the
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difference in environmental influence between wind power and coal-fired power
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generation. Xue et al. (2015) compared CO2, SO2, NOX and PM10 emissions between
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coal-fired plants and wind farms based on the life cycle method [20]. The results
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showed that the substitution of wind power for coal-fired power per kWh can reduce the
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emissions of CO2, SO2, NOx and PM10 by 97.48%, 80.38%, 57.31%, and 30.91%,
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respectively. Chen et al. (2011) used a typical wind farm in China’s Guangxi province
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as a case study to calculate the environmental effect of various stages in a wind farm life
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cycle period [21]. They concluded that the emission of CO2 equivalent was 0.002 kg for
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1 MJ of electricity by the wind farm plant, 108 times less than those of the average coal
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plant in China. Also based on the life cycle method, Zhao and Wang (2014) analyzed
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the difference in CO2 emissions between wind power and coal-fired power generation
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[22], and argued that by substituting wind power for coal-fired power generation, CO2
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could be reduced by 0.867 kg/ kWh; and taking the benefits of CO2 emissions reduction
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into account, the cost of wind power generation was only 0.027 RMB Yuan/(kWh)2
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higher than that of thermal power generation. To the best of our knowledge, this study is
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the only one that explored the economic cost of wind power generation while
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considering environmental externalities. However, this study was only concerned about
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the impact of the environmental cost of CO2, other types of pollutant emissions, such as
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PM, SO2, and NOx, were not considered. The contribution of this study lies in two important aspects: first, we analyze the
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impact of wind power priority dispatch on energy consumption in a power system and
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attempt to answer the following two questions: Is wind power priority dispatch always
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beneficial for energy conservation? If the answer is no, then what is the turning point at
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which wind power curtailment can reduce the energy intensity in the power system?
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Second, we compare the cost of wind power and coal-fired power generation to show
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the economic value of the priority dispatch of wind power taking into the
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environmental externalities resulted from CO2, dust (PM), SO2, and NOx.
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3 Methodologies
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3.1 Objective function
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Our objective function is to minimize the economic cost. The economic cost of a
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power system consists of four parts: energy consumption from the operation of
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coal-fired units, energy consumption from units starting and stopping for peak shaving
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(the part inside square bracket), the punishment cost in the context of wind power
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curtailment, and the reserve cost of coal-fired units.
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T
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T
t=1
i=1
t=1
∑ ∑Ui,tOci (Pi,t ) +Ui,t (1−Ui,t−1)Sci,t +Ui,t−1(1−Ui,t )Sdi,t +β∑(Pwt*, −Pwt, ) +fi (ri ) (1)
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where T represents time, N is the number of coal-fired power units, and U it is the
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operating state of unit i at moment t , which has two values, U it =0 represents the 8
ACCEPTED MANUSCRIPT stopped units and Uit =1 represents units that are in working condition. Pi t is the
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coal-fired power generation for unit i at time t , and Oci ( Pi ,t ) is energy consumption
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when coal-fired units are in operating status, which is generally expressed as a
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quadratic function of the power of units [23-25], that is:
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Oci ( Pi,t ) = a1i Pi,2t + b1i Pi ,t + c1i
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where a1i , b1i and c1i are generation cost parameters.
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Sci ,t (in Eq. (1)) is the energy consumption for unit i that starts at time t . S di ,t is
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the energy consumption for unit i that stops at time t . Pw*,t is wind power generation
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that can be dispatched without curtailment at time t . Pw,t is the actual wind power
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generation at time t . β is the priority coefficient, which is bigger than the maximum
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value of the total coal consumption in the power system, incurring a steep cost when
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even a small part of wind power is curtailed. fi (ri ) is the cost function of the reserve
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capacity of coal-fired units; according to [23], it is:
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(2)
f i ( ri ) = a2i + b2i rit + c2 i rit2
(3)
where a2i , b2i and c2i are reserve cost coefficients and rit represents the reserve
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capacity of generation of unit i at time t . If a unit is not connected to the grid at time t ,
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then the reserve capacity is at the upper limit of its output.
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3.2 Constraint conditions
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(1) Constraint of Power balance N
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∑U i =1
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i ,t
Pi ,t + Pw,t = PL ,t
(4)
where N is the total number of coal-fired units in a system, Pw,t is the wind power
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generation at time t , and PL ,t is the load value at time t .
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(2) Constraint of coal-fired power generation
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U i ,t Pi ,min ≤ Pi ≤ U i ,t Pi ,max
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respectively, for unit i . (3) Constraint of the coal-fired power ramping rate: Pi ,t −1 − Pi ,t ≤ ∆Pi ,down Pi ,t − Pi ,t −1 ≤ ∆Pi ,up
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where Pi ,min and Pi ,max are the minimum and maximum power generation,
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(5)
(6)
where ∆Pi , down and ∆Pi ,up are the down and up climbing rates of unit i .
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(4) Technical constraints of a wind turbine
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0 ≤ Pw,t ≤ Pw*,t
(7)
where Pw*,t is wind power generation that can be dispatched at time t ; Pw,t is actual wind power generation at time t .
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(5) Constraint of the spinning reserve of coal-fired plants Up-spinning reserve constraints:
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Sui ,t = min( Pi tmax − Pi t , T10 × rui )
(8)
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Pi tmax = min( Pi t −1 + rui × T60 )
(9)
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where S ui ,t is up-spinning reserve for unit i at time t within 10 minutes; rui is the
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up-climbing rate for coal-fired unit i ; Pi tmax is the maximum power generation for unit
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i at time t ; Pi t is power generation for unit i at time t ; T10 is the response time of
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spinning reserve, which is 10 min; Pi t −1 is the power generation for unit i at time t -1 ;
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and T60 is an operating period, which is 60 minutes.
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Eq. (8) means that the additional power generated by coal-fired plants when wind 10
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by two conditions: one is the difference between the maximum power generation it can
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reach at time t and the actual power generation at this time; the other is the ramp rate of
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unit i for 10 minutes. For example, a unit can generate 600MW at time t ( Pi tmax = 600 ),
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and its actual power generation at this time is 400MW ( Pi t = 400 ), then the possible
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up-spinning reserve would be 200MW. However, coal-fired power generation increase
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can’t be finished immediately, and it should be constrained by unit ramp-up rate (the
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speed of adding power output). For example, if the ramp-up rate of unit i for 10
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minutes is 100MW, then within 10 minutes, the up-spinning reserve for this unit is only
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100MW instead of 200MW; but within 20 minutes, the up-spinning reserve for this unit
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will be 200MW.
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Eq. (9) means that the maximum power generation at time t is constrained by the
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power generation at time t − 1 and the additional power output in the next one hour. For
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example, in the context of cold-start up of coal fired power plants (plants start up from a
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status of fire off), no additional power will be generated in the next one hour since the
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time of cold-start up is generally more than several hours. Then, the maximum power
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generation at time t is the same as that at t − 1 .
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Down spinning reserve constraints: S di ,t = min( Pi t − Pi tmin , T10 × rdi )
(10)
Pi tmin = max( Pi min , Pi t −1 − rdi × T60 )
(11)
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where S di ,t is down-spinning reserve for unit i at time t within 10 minutes; rdi is
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down-climbing rate for unit i ; and Pi tmin is the minimum power generation for unit i at 11
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time t . Pi min is the minimum power output that coal-fired power unit i can attain. Similar with the meaning of Eq. (8) and (9), Eq. (10) means down spinning reserve
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(the space of coal fired power generation can be reduced for integrating more wind
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power generation) should also be constrained by two conditions: one is that a unit must
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meet the minimum power generation. In general, the minimum power generation of a
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coal fired unit is around 40% of its stored capacity. For example, the minimum power
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generation of a 600MW unit is around 240MW. Hence, in Eq. (10), if the current power
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generation for unit i is 400 MW ( Pi t = 400 ), its minimum power generation is 240MW
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( Pi tmin = 240 ), then the possible down-spinning reserve would be 160MW. Meanwhile,
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the down-spinning reserve is also constrained by ramp-down rate of a unit (the speed of
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reducing power output), the situation is similar with that of Eq. (8). For example, if the
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possible reducing power output for unit i is 160MW, the ramp-down rate of the unit is
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100MW for 10 minutes, then the down spinning reserve will be 100MW instead of
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160MW.
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Eq. (11) means the minimum power generation of a unit at time t ( Pi tmin ) depends
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on the minimum power generation the unit can reach ( Pi min ) and the difference between
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the actual power generation at time t − 1 and the reducing speed of power output within
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one hour. For example, if the minimum power generation of a unit is 240MW
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( Pi min =240 ), the actual power generation of the unit at time t − 1 is 400MW
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( Pi t -1 = 400 ), the ramp-down rate of the unit is 200MW per hour ( rdi = 200 ), then the
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minimum power generation of a unit at time t ( Pi tmin ) is 240 MW.
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(6) The minimum start/stop time constraint: 12
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on (U i , t −1 − U i ,t )(Ti , t −1 − Ti , on ) ≥ 0 off (U i , t − U i ,t −1 )(Ti , t −1 − Ti , off ) ≥ 0
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where Ti ,ont −1 and Ti ,offt −1 is the continuous running time and stopping time for unit i at
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time t -1 , respectively; Ti ,on and Ti ,off represents the minimum continuous running time
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and minimum stopping time for unit i , respectively.
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Eq. (12) can be divided into two parts. The first part, (U i ,t −1 − U i ,t ) or (U i ,t − U i ,t -1 ) ,
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represents the status of unit i . If t = 1 , then U i ,t −1 =U i ,0 , means the unit is in the status of
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stopping at previous stage; and U i ,t =U i ,1 , means the unit is in the status of operating at
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the current stage. (U i ,t −1 − U i ,t ) indicates that unit i starts up from stopping; and
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(U i ,t − U i ,t -1 ) represents that unit i stops from starting up.
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The second part of Eq. (12), (Ti ,ont −1 − Ti ,on ) or (Ti ,offt −1 − Ti ,off ) , represents the actual
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continuous operating time of unit i must be more than the minimum permitted
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continuous operating time, or the actual continuous stopping time of unit i must be
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more than the minimum permitted continuous stopping time. For example, if Ti ,on =5 ,
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means the minimum permitted continuous running time of unit i is 5 hours, in this
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context, Ti ,ont −1 ≥ 5 , means the actual continuous running time of unit i must be more
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than 5 hours. Similarly, if the minimum permitted continuous stopping time of unit i is
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5 hours ( Ti ,off =5 ), the actual continuous stopping time of unit i must be more than 5
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hours ( Ti ,offt −1 ≥ 5 ).
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3.3 Reserve capacity model that considers uncertainty
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We construct a reserve capacity model that considers the uncertainty of wind
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power and the power load based on the probability method. A probabilistic model of
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reserve capacity can be used to obtain the up-regulated and down-regulated reserve 13
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capacity by using some confidence level with regard to the forecasting uncertainty of
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the wind power and load to ensure safe operation.
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The constraint of the up-spinning reserve capacity with an expected probability is as follows:
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Sust = ∑ Sui,t ≥ PLt × L% + Pw* t × wu %
(13)
i =1
where S ust is the total up-spinning reserve in a system at time t , S ui ,t is up-spinning
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reserve for unit i at time t within 10 minutes, which is determined by Eq. (8); and PLt
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is the anticipated power load; L % is the demand for up-spinning reserve caused by the
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forecast error of total power load; Pw*
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is the anticipated wind power generation; and
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wu % is the demand for up-spinning reserves caused by the forecast error of wind power
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generation.
Eq. (13) means the total up-spinning reserve should be no less than the sum of the
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reserve required by the forecast error of total power load and the forecast error of wind
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power generation. For example, the anticipated power load is 5GW at time t ( PLt = 5 ),
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the forecast error of total power load is 5% ( L% = 5% ); the anticipated wind power
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generation at time t is 1GW ( Pw*,t = 1 ), and the forecast error of wind power generation
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is 10% ( wu % = 10% ), then the total up-spinning reserve should be no less than 0.35GW
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(5×5%+1×10%=0.35).
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The constraint of down-spinning reserve capacity with expected probability is as follows: N
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y =1
S dst = ∑ S di ,t ≥ (∑ Wymax +Pwt ) × wd %
(14)
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total of down-spinning reserves for unit i at time t within 10 minutes, which is
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determined by Eq. (10); Wymax is the maximum wind power generation for unit y ; Pwt is
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the anticipated wind power generation at time t ; N w is the total number of wind units;
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and wd % is the demand for down-spinning reserve caused by the forecast error of wind
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power generation.
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Different from Eq. (13), the total of down-spinning reserves in Eq. (14) ( S ust )
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should consider both the maximum of total wind power generation and the anticipated
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power generation at time t . This is because down-spinning reserve is referred as the
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power generation space that should be reduced by coal fired plants for extra wind power
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integration out of the original planning. The extra wind power generation out of the
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original planning depends on not only the anticipated power generation, but also the
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maximum of total wind power generation. For example, if the maximum of total wind
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Nw
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power generation is 1GW ( ∑ Wymax =1 ), the anticipated wind power generation is
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0.8GW ( Pwt =0.8 ), the demand for down-spinning reserve caused by the forecast error of
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wind power generation is 5% ( wd %=5% ), then the total of down-spinning reserves
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should be no less than 0.09 GW [(1+0.8) ×5%=0.09].
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With the expansion of the forecasting period, the forecast error of wind power
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generation increases, thus increasing the demand of the up-spinning reserve capacity.
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To describe the effect of the dynamic system dispatching reflected by the forecasting
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period of wind power, wu % in Eq. (13) and wd % in Eq. (14) are used to follow the equal
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growing ratio rule of different research periods. 15
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3.4 Life cycle method The life cycle method is used to calculate the environmental cost of coal-fired
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plants and wind farms. The steps include: acquisition of production resources,
4
plant/farm construction, plant/farm operation, and plant/farm decommissioning. The
5
equation is as follows: n
n
m
i
i
j
QE = ∑ QEi = ∑∑ Ecij × QEf ij
(15)
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where QE is the total CO2/pollutant emission in a life cycle, QEi is the
8
CO2/pollutant emission in stage i , Ecij is the consumption of material j in stage i ,
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and QEf ij is the CO2/pollutant emission factor of material j in stage i .
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Based on the CO2/pollutant emission, we can calculate the economic cost of environmental externalities using Eq. (16). n
12
C = ∑ QEm × Pm m =1
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(16)
where C is the total environmental externality cost, QEm is the emission of
14
CO2/pollutant m , Pm is the unit environmental cost of emission m , and n equals the
15
total types of emissions.
16
4 Data source
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The data regarding the parameters of coal-fired units has been collected from
18
Attaviriyanupap et al. (2002) [26]. The data used to calculate CO2 and pollutant
19
emissions for the coal-fired power output in a life cycle has been collected from Datang
20
Zhaluteqi Wind Farm Project I, with a 49.5MW capacity from 33 wind turbines located
21
in Inner Mongolia, China. The power load data have been collected from [27]. The data 16
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2
been collected from Huaneng Jiutai Power Plant Project II, located in Jiutai city, Jilin
3
province, with an installed capacity of 2×660 MW of Super Critical Units. The wind
4
power generation data are shown in Fig. 1-3.
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Fig. 1 shows the wind power generation data for each hour in a month and the
6
variation characteristics; the wind power output is referred to as the percentage of the
7
average wind power generation in one month to the total installed capacity of wind
8
power. Fig. 2 and Fig. 3 show the wind power curve on a typical day in the summer and
9
winter, respectively.
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Fig. 1 here.
11
Fig. 2 here.
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Fig. 3 here.
13
For the spinning reserve data, according to Zhou et al. (2009) [28], the demand for
14
up-spinning ( wu % ) and down-spinning reserves ( wd % ) that is caused by the forecast
15
error of wind power generation is between 10%-30% and 30%-50%, respectively; the
16
spinning reserve is valued according to the equal proportion principle of the dispatch
17
period; the demand for up-spinning caused by the forecast error of the power load ( L % )
18
is assumed to be 5%. The coefficients of the reserve cost function are shown in table 1.
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Table 1 here.
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The component and weight of a wind power turbine are based on the introduction
21
of the Dongqi FD77-1500 wind power turbine (Table 2), which is used in this study’s
22
wind farm case; it is commonly used turbine in China. The material data for the 17
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components of wind power turbines have been collected from [29] and are shown in
2
Table 3. Table 2 here.
4
Table 3 here.
5
The components and materials (mainly steel) used in building coal-fired units of
6
600 to 660MW are shown in Table 4, and the materials used for building the coal-fired
7
plant in this study are shown in Table 5. Table 4 here.
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Table 5 here.
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5 Results and discussions
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5.1 Impact of the wind power priority dispatch on energy consumption
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Coal consumption in the power system of this study continuously decreases as
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wind power generation increases (Table 6). The decrease is primarily caused by energy
14
conservation during the process of power generation (operating energy consumption).
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Contrary to the continuous decrease of operating energy consumption, the reserve
16
energy consumption increases as wind power generation increases (Table 6). This
17
happens because as wind power generation increases, more reserve capacity is needed;
18
in this context, more coal-fired units should be operated at a low output level, which
19
leads to an increase in energy intensity. Meanwhile, as wind power generation increases,
20
start-stop energy consumption first increases and then decreases. This is because with
21
more wind power generation, more coal-fired power units are needed to provide start
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and stop peak shaving services. However, when wind power generation increases to a
2
certain level, in this study, 30% of the total power generated (Table 6), some coal-fired
3
power units cannot be restarted once they are shut down. Table 6 here.
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In the power system, start-stop energy consumption and reserve energy
6
consumption are relatively small; total energy consumption depends on the operating
7
energy consumption. Table 6 shows that as wind power generation increases, total
8
energy consumption significantly decreases. Fig. 4 shows the change in energy
9
intensity (the energy consumption for average hourly power generation) that results
10
from an increase in wind power generation. It shows that with an increase in wind
11
power generation, energy intensity 3 continuously decreases, from 323.11 gram (g) of
12
standard coal equivalent (sce)/kWh to 265.37 g sce /kWh, as the percentage of wind
13
power generation increases from 5% to 40%.
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Fig. 4 here.
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Fig. 4 shows that an increase in wind power generation leads to a decrease in
16
energy intensity in the power system. However, we don’t know if to minimize the
17
energy intensity, wind power should be curtailed? This question is answered in Table 7.
18
It shows that when the proportion of wind power generation is comparatively small,
19
wind power should be dispatched first to minimize energy consumption (energy
20
intensity). As the proportion of wind power generation increases, the system cannot
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It is defined as the quantity of standard coal consumption of per unit power generation. 19
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2
consumption occurs with the curtailment of wind power. In this study, curtailment of
3
wind power begins between 15% and 20%. However, at this point, the wind power
4
curtailment ratio is very low. For example, the wind power curtailment ratio is only
5
0.21% when the wind power generation proportion is 20% (Table 7).
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Table 7 here.
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5.2 Environmental value of the wind power priority dispatch
We first calculate the emissions of wind farms from a life cycle perspective. Based
9
on the data in Table 2 and Table 3 and according to the studies from Wang and Zhang
10
(2012) [30], Ruan et al. (2010) [31], Zhang et al. (2008) [32], Ye et al. (2007) [33], and
11
Li et al. (2009) [34] about the environmental externalities of the materials used to
12
manufacture wind turbines, we can derive the CO2 and pollutant emissions during the
13
manufacture of wind turbines (Table 8). Meanwhile, we can derive the emissions in the
14
transportation stage of the wind turbine from the data in Table 2 and Table 3 as well as
15
based on the reference [22], [35-36] (Table 9). Reference [22] states that, in general, the
16
transportation distance of wind turbines is 2500 km by railway and 400 km by road; [35]
17
states that 30% and 70% of the components of wind turbines are transported by railway
18
and highway, respectively; and [36] provides the emission intensity during the process
19
of materials transportation both by railway and highway.
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Table 8 here.
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Table 9 here.
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2
the infrastructure construction, wind turbine installation, and electrical equipment
3
installation. According to the study results of [31], [32], and [37-40], which are related
4
to the environmental externalities of the relative materials in a life cycle period, and the
5
materials quantities used in the process of wind farm construction calculated by [22],
6
we can obtain the emissions in the stage of wind farm construction (Table 10).
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Table 10 here.
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Furthermore, we need to calculate the emissions of a wind farm during its
9
operation and decommissioning stages. The emissions in the operation stage are caused
10
by both the replacement and maintenance of damaged components and the
11
transportation of the related components and workers in the wind farm. According to
12
[22], the life span of a wind farm is typically 20 years; the diesel oil consumed in this
13
stage is 1495.44 L. Guo (2012) argues that in the entire life span of a wind farm, a blade
14
and 15% of the total components will need to be replaced [41]. Moreover, according to
15
the study results of [29], which pertain to the weight of the blade and the material used,
16
and the study results of [32] and [34], which pertain to the environmental externalities
17
of the related materials in a life cycle, we can derive the emissions in the wind farm
18
operation stage (Table 11). The emissions in the wind farm decommissioning stage
19
account for an estimated 10% of the emissions in the wind turbine manufacturing stage
20
[35]; the results are shown in Table 12.
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Table 11 here.
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Based on Tables 8 through 12, we can derive the total emissions of CO2 and
3
pollutants for a life cycle period of the wind farm in this study. The wind power
4
generated from the wind farm is 117.57 GWh per year, and the life cycle of a wind farm
5
is, on average, 20 years. Hence, we can calculate the emissions for an average unit of
6
wind power generation from the wind farm, which is shown in Table 13.
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Table 13 here.
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The wind farm in this study, the Datang Zhaluteqi Wind Farm Project I, is a
9
representative example of wind farms in China. On one hand, the capacity of this farm
10
is 49.5 MW. According to the EPISC (2013), of the 205 wind farms built in 2013, 175
11
are installed with a capacity ranging from 47.5 MW to 50 MW. On the other hand, the
12
wind turbines (including fans and towers) used in this farm are the Dong Fang
13
FD77-1500, which is a common wind turbine that is used in China. Hence, the results
14
presented in Table 13 represent the general emission levels of China’s wind farms.
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Second, we calculate the emissions of coal-fired plants from a life cycle
16
perspective. Di et al. (2005) calculate the emission intensity in the coal mining and
17
transportation processes [42]. Because we know the coal consumption of the Huaneng
18
Jiutai Power Plant Project II is 4.213×106 tons, we can calculates the emissions in the
19
coal production and transportation stages (Table 14).
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Table 14 here.
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The main equipment used in coal-fired power plant construction include the boiler, 22
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2
and the steel needed to produce this equipment can be calculated using the 600-660MW
3
generator manual of Shanghai. Moreover, according to [30], which pertains to the
4
environmental externalities of the steel production process, we can derive the emissions
5
in the main equipment manufacturing stage (Table 14).
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To maintain consistency with the analysis for wind power farm emissions, we
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calculate the emissions in the equipment transportation process assuming that 30% and
8
70% of the equipment of coal-fired power plant are transported by railway and highway,
9
respectively. According to the China Statistical Yearbook (2014), in 2013, the average
10
transport distances via railway and highway were 735 km and 181 km, respectively,
11
which are taken as the transport distance of the equipment. Based on [36], which
12
pertains to the emission intensity of railway transport and highway transport, we can
13
obtain the emissions in the main equipment transportation stage (Table 14).
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The emissions in the coal-fired power plant construction stage include the emissions caused by the installation of the equipment
16
and the construction of the main buildings. The materials used in the equipment
17
installation and main building construction processes are calculated according to
18
Organization & Design Standard on the Power Factory Construction of 2×660MW and
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Construction Standard of Coal fired Power Plants of 2×600MW, respectively.
20
According to [30], [31], [39], and [40], which calculate the environmental externalities
21
of the production of related materials, we can obtain the emissions from the coal-fired
22
power plant construction stage (Table 14).
boiler, turbine, and generator
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2
by burning coal and waste disposal. Di et al. (2005) calculate the emission intensity of
3
burning coal in coal-fired power plants [42]; the desulfuration, denitration, and
4
dedusting in coal-fired power production is given as 90%, 82.3%, and 99.7%,
5
respectively [42]. According to the Huaneng Jiutai Power Plant Project II Environment
6
Impact Report (simplified edition), the annual output of desulfurization gypsum and ash
7
is 48.6 thousand tons and 410.4 thousand tons, respectively; the ash yard distance is 4.5
8
km. Based on the above information, we can calculate the emissions in the coal-fired
9
plant operation stage (Table 14).
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The Huaneng Jiutai Power Plant Project II has an installed capacity of 2*660 MW
11
of Super Critical Units. According to the China’s Electric Power Industry Statistical
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Compilation (EPISC) (2013), there are 7223 coal-fired power units, the capacities of
13
which are not less than 6 MW; only 522 units have capacities that are over 600 MW, or
14
7.2% of the total capacity. This suggests that this project represents a relatively high
15
level of technology in China. To generalize our research, when evaluating the emissions
16
per unit of coal-fired power generation, we use the national average coal consumption
17
rate (coal consumption per unit of power generation) of 302 g sce/kWh in 2013 instead
18
of the coal consumption rate of this specific plant (282.4 g sce/kWh).
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As to the emissions in the coal-fired power plant decommissioning stage,
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according to [43], the emissions in this stage are 10% of the emissions in the coal-fired
21
plant construction stage. Hence, we can calculate the emissions in this stage (Table 14).
22
While the coal-fired power plant in this study has a high technological ranking, we 24
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substitute the national average coal consumption rate level of coal-fired plants for the
2
consumption of this plant to ensure that our study is representative of the national level
3
in Table 14. Third, comparing the emissions of wind power generation (Table 13) with the
5
emissions of coal-fired power generation (Table 14), we argue that there is a great
6
environmental value to be obtained by substituting wind power for coal-fired power.
7
Specifically, substituting 1 kWh of coal-fired power with wind power reduces SO2,
8
NOx, CO2, and PM by 0.7556 g/kWh, 0.721 g/kWh, 791.92 g/kWh, and 0.4591 g/kWh,
9
respectively. Our SO2, NOx, CO2 reduction results are similar to those of Zou and Ma
10
(2003) and Gao et al. (2012). Zou and Ma (2003) and Gao et al. (2012) do not calculate
11
the PM reduction. According to the report issued by the China Electricity Council, wind
12
power generation in 2014 of 156.3 TWh accounted for 2.8% of the total power
13
generation; the thermal power generation (dominated by coal-fired power generation)
14
as 4173.1 TWh, accounted for 75.2% of the total power generation in 20144. If wind
15
power generation increases by 1% and thermal power generation decreases accordingly
16
by 1% in China, SO2, NOx, CO2, and PM will decrease by 4.19×105, 4.0×105, 4.4×108,
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and 2.5×105 tons, respectively.
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5.3 Economic feasibility of the wind power priority dispatch considering
19
environmental cost
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Data source: Analysis on China’s electricity industry operation conditions in 2014. China
Electricity Council, 2015, 02, 03. Last access: 2016, 01, 30. http://www.jcoal.com/haomei/dianli/news/html/1502/20150203_312318.html 25
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Jiang et al. (2013) evaluates the environmental cost of SO2
NOx CO2, and PM
emissions [44]; however, the above study uses the 2010 level of purchasing power. To
3
accurately reflect the current environmental cost of emissions, we recalculate the
4
economic cost of the above emissions using the 2014 purchasing power level; the
5
results are shown in Table 15.
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Table 15 here.
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Based on Tables 13, 14, and 15 as well as Eq. (17), we can obtain the
8
environmental cost of wind power generation and coal-fired power generation; they are
9
0.003 RMB Yuan/kWh and 0.208 RMB Yuan/kWh, respectively. n
ECW = ∑ EQwm × Pm 10
m =1 n
ECC = ∑ EQcm × Pm
(17)
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where ECw and ECc are the environmental cost of wind power and coal-fired
12
power, respectively; EQwm and EQcm are pollutant m emission for wind power
13
generation and coal-fired power (per kWh), respectively; Pm is the environmental cost
14
of pollutant m .
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According to [22], the economic cost of coal-fired power generation and wind
16
power generation are 0.307 RMB Yuan/kWh and 0.44 RMB Yuan/kWh, respectively.
17
He et al. (2013) [45] argue that the cost of ancillary services for wind power generation,
18
which include the peak shift cost, frequency modulation cost, and spinning reserve cost
19
[46], is 0.084 RMB Yuan/kWh. Hence, the economic cost for wind power generation is
20
0.524 RMB Yuan/kWh including the cost of ancillary services. 26
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2
by considering both economic environmental costs, which are 0.527 RMB Yuan/kWh
3
and 0.515 RMB Yuan/kWh, respectively. The results indicate that the wind power
4
generation cost is approximately equal to the coal-fired power cost when the
5
environmental cost is taken into consideration, meaning that implementing a wind
6
power priority dispatch, even from an economic aspect, is feasible.
7
6 Concluding remarks
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China’s power mix has long been overwhelmingly dominated by coal-fired power,
9
the cost of which is lower than in the U.S., the European Union, India, and much lower
10
than the domestic gas-fired power cost. Scaling up the deployment of renewable energy
11
is critical for the country to address its deteriorating environmental pollution, and to
12
coordinate its economic growth and energy consumption as well. In this study, we
13
explore the energy conservation, environmental, and economic value of wind power
14
priority dispatch in China. China’s wind power generation ratio to its total power
15
generation is still around 3%; however, its average wind power curtailment is more than
16
10% annually. The consciousness and attitudes regarding a wind power priority
17
dispatch (or incentive policies of wind power generation) play an important role in the
18
implementation of these policies and the reduction of the wind power curtailment ratio.
19
However, the controversy surrounding the value of wind power priority dispatch still
20
exists in China; some scholars (and policy makers) question the energy conservation
21
and economic value of wind power priority dispatch. This study attempts to address the
22
current doubts casting on the value of wind power priority dispatch in China.
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ACCEPTED MANUSCRIPT Our first conclusion is that the energy intensity of the power system in this study
2
decreases as the proportion of wind power generation increases; specifically, the energy
3
intensity decreases from 323.11 g sce/kWh to 265.37 g sce/kWh, when wind power
4
generation increases from 5% to 40% in this case study. To realize the minimization of
5
the energy intensity in this study, wind power curtailment should occur when wind
6
power generation is between 15% and 20% of the total power generated. However, the
7
wind power curtailment ratio is as low as 0.21% when the wind power generation ratio
8
is 20%. Even when the wind power generation ratio reaches 40% of the total power
9
output, the wind power curtailment ratio that minimizes energy intensity is 8.30%,
10
which is lower than the current average national level. Therefore, we conclude that to
11
improve energy conservation, China’s wind power priority dispatch policy needs to be
12
effectively implemented.
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Our second conclusion is that wind power priority dispatch has a significant value
14
on environmental improvement. We have shown that by substituting 1 kWh of wind
15
power for 1 kWh of coal-fired power, the emission of SO2, NOx, CO2, and PM will be
16
reduced by 0.7556 g/kWh, 0.721 g/kWh, 791.92 g/kWh, and 0.4591 g/kWh,
17
respectively.
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Our final conclusion is that wind power priority dispatch has economic feasibility.
19
When taking external environmental costs into account, the costs of wind power and
20
coal-fired power generation are 0.527 RMB Yuan/kWh and 0.515 RMB Yuan/kWh,
21
respectively; the economic generation costs of wind power and coal-fired power are
22
0.524 RMB Yuan/kWh (including an ancillary service cost of 0.084 RMB Yuan/kWh) 28
ACCEPTED MANUSCRIPT and 0.307 RMB Yuan/kWh, respectively; the environmental costs of wind power and
2
coal-fired power are 0.003 RMB Yuan/kWh and 0.208 RMB Yuan/kWh, respectively.
3
The overall cost of wind power is very close to that of coal-fired power. The
4
technological progress in wind power generation combined with increasing concern
5
about the environment will lead to increased value of wind power. Hence, the economic
6
value of wind power priority dispatch is expected to become more apparent in the near
7
future.
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This paper makes three main contributions. First, we empirically investigate the
9
impact of wind power priority dispatch on energy intensity, stating that while wind
10
power priority dispatch will not always ensure energy intensity minimization, an
11
increase in wind power generation will lead to continuous decreases in energy intensity.
12
Second, we evaluate the environmental value of substituting wind power for coal-fired
13
power by examining four types of emissions: CO2, SO2, NOx, and PM (to our
14
knowledge, previous studies have only explored the emissions of CO2, SO2, and NOx).
15
Third, we calculate the overall cost of wind power generation and coal-fired power
16
generation, considering the economic cost and environmental cost as well as the
17
ancillary service cost of wind power generation.
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An important policy implication from this analysis is that China needs to
19
strengthen the implementation of its current wind power priority dispatch policy. We
20
have shown that wind power generation has a significant impact on energy
21
conservation and environmental improvement. However, the relatively positive
22
environmental externalities of wind power cannot be reflected by the current power 29
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2
implemented at present. Along with the mitigation of market failure caused by
3
environmental externalities (for example, with the improvement in carbon tax or carbon
4
emission trading mechanism), it is advisable to implement market approaches to
5
promote wind power generation through competition [47-48]. Mignon and Bergek
6
(2016) also argued that incentive policy is an important trigger for emerging investors'
7
decisions in building renewable energy projects [49]. China has taken a series of
8
incentive policies to promote wind power and other kinds of renewable energy
9
generation [50]. Nevertheless, there is a long way to go for China to promote large scale
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increase of wind power and other renewable energy by effective incentive policies. It should be noted that our conclusions regarding the impact of wind power priority
12
dispatch on energy intensity should be viewed with caution. Despite our attempts to
13
make our study representative of the current power market in China, the power system
14
in our study is simulated and may differ from that of the actual system.
15
Acknowledgments
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We would like to thank the National Natural Science Foundation of China (Grant
17
No. 71373078, 71573273) and the National Social Science Foundation of China (Grant
18
No. 14BJY063) for partially funding this study as well as the fund from China
19
University of Petroleum-Beijing (Grant No. 2462014YJRC052). We appreciate
20
professor Sufang Zhang’s help in correcting this paper.
21
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Energy Society wind energy professional committee, the Global Wind Energy
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Parameters
Value
a2i
0.0074
b2i
51.62
c2i
117.73
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Table 1 Coefficient value in the reserve cost function
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Sources: Authors’ calculation based on the data collected from field research in Liaoning province.
Table 2 Component and weight of a wind power turbine Component
Blade
Tower
Wind wheel
Cabin
Gear
Generator
Hub
Spindle
Weight(t)
6×3
90.4
15.9
5.6
16
6.8
16
7.15
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Source: http://www.doc88.com/p-971466175230.html
Table 3 Materials for the manufacture of wind power turbines
150.95
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Demand(t)
Steel
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Materials
Copper
Glass fiber
Silicon
Resin
3.5
20
0.3
1.1
Source:Martnez E, Sanz F, Pellegrini S, et al. Life cycle assessment of a multi-megawatt wind turbine. Renewable Energy, 2009, 34, 667- 673.
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Table 4 Materials used for building the coal-fired unit in this study
Steel consumption(t)
Boiler
Turbine
Generator
509.42
1052.52
490
Total
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Main equipment
2051.94
Source: http://www.docin.com/p-335996903.html;http://www.docin.com/p-450639808.html;
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600-660MW generator manual of Shanghai.
Table 5 Materials used for building the coal-fired plant in this study Material
Concrete
Net
Steel(t) Reinforced
used
(m3)
frame(t)
Quantity
69406
248
2749
7925
5610
CO2(t)
19572.49
545.6
6047.8
17435
370.26
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(t)
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Source: http://www.doc88.com/p-9522934644806.html
Aerated Concrete
Total
Masonry(m3) — 43971.15
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Table 6 Coal consumption in a power system (tce: tons of standard coal equivalent) operation energy
start-stop
Reserve
consumption
consumption
energy
energy
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θ
Total
consumption
consumption 25.7492
5%
440.2524
412.4960
2.0072
10%
401.8394
372.3124
2.3394
15%
381.9736
349.8306
2.5566
29.5864
20%
355.6202
320.9476
2.7976
31.8750
25%
339.2586
302.3238
2.8514
34.0832
30%
290.3952
287.4126
2.9824
36.5624
35%
276.3548
273.6326
2.7222
38.0028
40%
246.5516
259.5952
2.6562
41.2500
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27.1874
Note: θ is the proportion of wind power generation to the total power generation in the
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system.
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Table 7 Wind power curtailment ratio for minimizing energy consumption Wind power generation ratio to the total power generation ( θ )
Parameter
Wind power curtailment ration ( ε )
θ
5%
10%
15%
20%
25%
30%
35%
40%
ε
0
0
0
0.21%
1.23%
3.79%
5.87%
8.30%
Wind power curtailment ratio: the ratio of wind power curtailment to the possible maximum wind power generation.
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Table 8 Emissions in the manufacturing stage of wind turbines (33 turbines in all) NOx
CO2
18.711
40.524
12181.521
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PM 8.712
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Emissions(t)
SO2
SO2 0.561
NOx
CO2
PM
0.462
108.570
0.330
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Emissions(t)
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Table 9 Emissions in the transportation stage of wind turbines (33 turbines in all)
Table 10 Materials used and relative emissions in the stage of wind farm construction
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Materials Used
Emissions(t)
Quantity of using(t)
SO2
NOx
CO2
PM
Steel
1911.8
3.84
11.03
3941.9
0.74
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Material
Copper
8.9
0.28
0.25
97.09
Aluminum
78.16
2.68
1.1
669.52
0.07
Cement
2749.2
1.02
5.28
1660.52
29.47
Concrete
192
0.06
0.28
117
6.74
Diesel
26.87
0.143
0.419
103.01
0.061
8.02
18.36
6589.04
37.08
Total
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Table 11 Emissions in the stage of wind farm operation and maintenance NOx
CO2
4.13
4.8
1272.12
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PM 2.16
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Emissions(t)
SO2
SO2 1.87
NOx
CO2
PM
4.05
1218.15
0.87
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Emissions(t)
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Table 12 emissions in the stage of wind farm decommissioning
Table 13 Emissions of wind power generation (g/kWh) Wind turbine
Wind turbine
EP
Emiss-
Wind farm
Wind farm
Wind farm Total
manufacture
transportation
construction
operation
decom.
SO2
8×10-3
3×10-4
3.4×10-3
1.8×10-3
8×10-4
1.42×10-2
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NOx
1.72×10-2
2×10-4
7.8×10-3
2×10-3
1.7×10-3
2.9×10-2
CO2
5.18
4.62×10-2
2.8
0.54
0.52
9.09
PM
3.7×10-3
1×10-4
1.58×10-2
9×10-4
4×10-4
2.09×10-2
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Table 14 Emissions of coal-fired power generation(g/kWh) Equipment
Power
Plant decommissioning
Coal mining
Total manufacture
construction
generation
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Emission
Plant
0.43
0.02
5.90×10-4
0.32
5.90×10-5
0.77
NOx
0.71
0.04
2.26×10-3
0.01
2.27×10-4
0.75
CO2
44.86
2.27
8.91×10-1
752.90
8.91×10-2
801.01
PM
0.19
0.01
4.02×10-2
0.24
4.02×10-3
0.48
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SO2
Note: Coal mining includes coal production and transportation.
Emissions Environmental cost
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(RMB Yuan/kg)
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Table 15 Environmental cost of emissions (RMB Yuan/kg) SO2
NOx
CO2
PM
34
22
0.18
24
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Wind power generation
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Month
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Wind power generation
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Fig. 1 Average monthly wind power generation1
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Hour
1
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Fig. 2 Wind power generation curve on a typical day in summer
The data in Fig 1 to Fig. 3 were collected from Texas in the United States for the following two
reasons: first, all of the wind power generation data in China were from after wind power curtailment, and we have no method to locate the original wind power generation data. Second, the wind power resource in Texas is the richest in the United States, which is similar to the status of the wind power resource in the Chinese province in this study.
Wind power generation
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Hour
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Fig 3 Wind power generation curve on a typical day in winter
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Fig. 4 Energy intensity change with a wind power generation increase
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Highlights
Wind power increase can promote energy intensity decrease significantly.
Wind power curtailment is very low for realizing energy intensity minimization.
Wind power priority dispatch has a big value on environmental improvement.
Wind power priority dispatch has economic feasibility.
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