Competition Analysis of LNG Power Plant in Guangdong Province

Abstract

The utilization of LNG (liquefied natural gas) with high quality and clean energy in power generation can rapidly meet the power load demand, adjust the peak task and maintain the stability of power grid. Due to their large consumption of LNG, LNG power plants play a vital role for LNG industry in the early period of LNG work in Guangdong province. The economics of LNG power plants is the key of the LNG chain. In this paper, the total cost of power generation in LNG power plant was thoroughly calculated, the influence of LNG price and annual utilization hour on the cost of power generation was analyzed and the environmental values were evaluated as well. Considering the features of Guangdong power market, the results of competition analysis on LNG power plant show that, firstly, under the current condition of LNG price and electricity market, the cost of LNG power generation is very high and is almost not competitive compared with desulphurization coal-fired power plants; secondly, LNG power plants is proposed to attain peak-load power price for their contribution to the power grid in peak-load adjustment; lastly, LNG power plants should be given national tax concessions for their high environment value and development of clean energy, so that the competition of LNG items in the electricity market can be enhanced.