Abstract
The increasing development of combined heat and power (CHP) plants is exacerbating the wind power curtailment problem in regional power grids during the winter heating season. Electric boilers (EBs) were proposed to be employed within CHP plants to relieve this problem. However, CHP plants usually have no incentive for investing in EBs. Therefore, CHP plants must be incentivized to make such investments through appropriate compensation from beneficiaries, i.e., government and wind farms, although this has not previously been discussed. We propose a game theory model to simulate the impact of government subsidies on EB investment. We analyzed the utilization of the involved parties with the marginal cost and average cost and applied game theory to simulate the investment decisions. Then, an approximate enumeration technique was developed to identify the optimum government subsidy. An actual case of a regional power grid in northern China was investigated to validate the proposed method. A minimum government subsidy to maximize total social benefit was calculated; this subsidy can incentivize wind farms and CHP plants to invest in and use EBs.
Highlights
Worldwide, wind power has become one of the most competitive renewable energies for mitigating energy and environmental problems despite its random and intermittent characteristics [1]
The problem is exacerbated in regional power grids, where combined heat and power (CHP) plants provide the majority of the electric power supply during the heating season
We suggested exploiting electric boilers (EBs) to increase the flexibility of CHP plants and concluded that the optimum capacity of the BTH grid is 1100 MW
Summary
Wind power has become one of the most competitive renewable energies for mitigating energy and environmental problems despite its random and intermittent characteristics [1]. The problem is exacerbated in regional power grids, where combined heat and power (CHP) plants provide the majority of the electric power supply during the heating season. Employing EBs to accommodate value analysis [19,20], scheme design [21,22], and optIinmvaelsctianpgaciintyEaBlloscwatiiollna[c1c6o].mmodate a larger amount of wind power, increase clean energy generatIinovne,satinndg cirneaEtBesadwdililtioacncaolmwminoddafaterma plarrogfietrs.aTmhoeurenftooref, wbointhd tphoewgeorv,eirnncmreeanset acnledanwiennderfgayrms aregemneortaivtiaotne,dantodicnrceraeteasaeddinitvioesntaml wenintsdifnarEmBsp.roFfriotsm. Background for Employing EBs in CHP Plants 2.1. By employing EBs, the CHP plants provide electric power (E1) and heat (H1 + H2). After employing EBs, the gap in the electricity supply from the CHP plants, which is represented by (E − E1), is provided by wind power; this value is the wind power accommodation that would otherwise be curtailed. The effectiveness of employing EBs for wind power accommodation is calculated as θ
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