Abstract

The paper analyses possibilities of a hard coal mine operation as an electricity consumer capable of reducing instantaneous demand for electric power in the case of a Demand Side Response (DSR) call. The analyses considered the risk of service provision or non-provision based on the 2018 data on the electricity consumption and on parameters of the Polish power system. The analyses applied to two types of DSR participation programmes: guaranteed and current, and to an example of hard coal mine from the area of the Upper Silesia, which ordered power was 20 MW. For the current programme (without fines for service non-provision) the optimum value – from the financial risk point of view - was calculated as 6 MW, and for the guaranteed programme results were determined depending on the ratio of price for service provision to the fine for non-provision.

Highlights

  • Because of intensive pursuit of greenhouse gases emission, in particular CO2, the share of controllable generating assets in the energy mix of individual states increasingly changes. This proceeds via replacement of controllable electricity generation sources, such as coalfired power plants with renewable energy sources, which by nature are not controllable. Taking into account such changes a need appears to intensify actions aimed at implementing management of electricity customers, which can be a tool used to maintain the stability of both generation and transmission systems in a given region in the case of significant increase in the demand for electricity and of a shortage of power in the system, which could respond to this increase

  • This paper presents a mechanism related to the demand side response implementation for Polish conditions

  • The evaluation of economic effects of the demand side response (DSR) service provision by the hard coal mine was calculated based on the data prepared in the previous section and on the adopted methodology of research and assumptions

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Summary

Introduction

Because of intensive pursuit of greenhouse gases emission, in particular CO2, the share of controllable generating assets in the energy mix of individual states increasingly changes. Apart from typical and known for many years solutions in the form of e.g. pumpedstorage power stations and inter-operator assistance (the use of cross-border connections), the implementation of a mechanism related to the demand side response (DSR) is one of possible solutions This mechanism becomes important as a tool for the power availability management in the power system, especially in critical situations, i.e. during peaks of demand for electricity. The environmental effect is the second category of benefits related to the demand side response mechanism use It consists in the reduction of greenhouse gases and other substances emission to the environment via elimination from the operation of units featuring the worst energy generation parameters. On the national level the DSR service is a voluntary and temporary reduction of electricity consumption by the users or a shift in time of its consumption to the order of Polish Power Grid (PSE S.A.) (i.e. the transmission system operator in Poland) in exchange for the expected remuneration. Further on a risk analysis and an economic analysis have been presented for the KWK due to the DSR services introduction, which can be a basis for more advanced assessment of DSR service cost in mines and of their profitability level

Risk analysis
Economic analysis
Conclusions

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