Economic and environmental effects of peak regulation using coal-fired power for the priority dispatch of wind power in China

Abstract

Wind curtailment is currently one of the major challenges in China’s renewable energy development. Technical solutions to wind curtailment could include more flexible power sources, storage and grid facilities. These, however, are long-term solutions due to physical, economic and institutional constraints. We argue that an effective short-term solution could be the full utilization of the technical potential of the existing power system, particularly by using China’s dominant coal-fired power capacity to provide peak regulation services for the priority dispatch of wind power.This paper assesses the economic and environmental effects of this approach. To this end, four scenarios are developed: Scenario I—full wind curtailment and average dispatch of coal-fired power, Scenario II—no wind curtailment and average dispatch of coal-fired power, Scenario III— no wind curtailment and optimal dispatch of coal-fired power, and Scenario IV —partial wind curtailment and optimal dispatch of coal-fired power. The economic and environmental effects under the four scenarios are then computed using the GAMS program based on the load curve on a typical spring day for a coal-fired power plant and a wind farm in China’s northeastern Harbin City. The results of our research show that whilst Scenario IV has the best economic effects, Scenarios III and IV have the best environmental effects. Scenario IV is considered the optimal solution as more economic benefits could be realized at the expense of smaller wind curtailment. Drawing on these results, it is recommended to amend the Renewable Energy Law to allow a small proportion of renewable energy curtailment; to enhance the flexibility of the existing coal-fired power units; to advance energy efficient power dispatch approach; and to incentivise coal-fired power to provide peak regulation services for renewable energy.