Integrated Energy Systems for Higher Wind Penetration in China: Formulation, Implementation and Impacts

Abstract

With the largest installed capacity in the world, wind power in China is experiencing a ∼20% curtailment. The inflexible combined heat and power (CHP) has been recognized as the major barrier for integrating the wind source. The approach to reconcile the conflict between inflexible CHP units and variable wind power in Chinese energy system is yet unclear. This paper explores the technical and economic feasibility of deploying the heat storage tanks and electric boilers under typical power grids and practical operational regulations. A mixed integer linear optimization model is proposed to simulate an integrated power and heating energy systems, including a CHP model capable of accounting for the commitment decisions and nonconvex energy generation constraints. The model is applied to simulate a regional energy system (Jing–Jin–Tang) covering 100-million population, with hourly resolution over a year, incorporating actual data, and operational regulations. The results project an accelerating increase in wind curtailment rate at elevated wind penetration. Investment for wind breaks even at 14% wind penetration. At such penetration, the electric boiler (with heat storage) is effective in reducing wind curtailment. The investment in electric boilers is justified on a social economic basis, but the revenues for different stakeholders are not distributed evenly.