Electricity Price Policy Research Articles

Economic analysis of hydrogen production from electrolyzed water technology by provinces in China

A novel model for measuring the economics of hydrogen generation via electrolytic water projects was constructed. The model overcomes the current problem of incomplete and inaccurate assessments of the price of producing hydrogen via water, which are caused by ignoring the indirect carbon costs of different power generation sources in the process of determining the cost of producing hydrogen via water. The model was used to analyze the price of producing hydrogen via water electrolysis and its sensitivity to the electricity costs of hydrogen production and carbon prices in various provinces of China. With the continuing increase in the penetration of novel energy in China’s power system and the gradual decline in electricity prices, the price of producing hydrogen via electrolytic water is expected to be close to or even lower than that of producing hydrogen via coal in the future. Geographical differences also have a significant impact on the price of producing hydrogen, which is typically higher in the southeastern coastal region than in the western region, because of the local price of electricity and the composition of the energy sources. Provinces that have been effective in developing novel energy sources, such as Qinghai, Sichuan, and others, have been effective in the hydrogen energy industry. Sichuan and other provinces with significant new energy development have a clear advantage in the hydrogen industry. Because provinces with low hydrogen production costs can transport hydrogen to provinces with high hydrogen production costs through pipelines, hydrogen pipelines are planned from Shaanxi to Henan and from Xinjiang to Nei Mongol. These study results reveal the relative economic advantages of producing hydrogen via water electrolysis under various energy and electricity price policies and provide new perspectives on China’s energy strategy and the growth of the hydrogen energy sector.

Control-oriented dynamic modeling and GPC for single-tower double-circulation wet flue gas desulfurization system

In China, the current situation of large-scale grid integration of renewable energy generation and the government's introduction of capacity-based electricity pricing policies have compelled coal-fired power plants to gradually enhance their load adjustment capabilities and expand their load adjustment ranges. Simultaneously, the national environmental requirements for these plants have become increasingly stringent. However, the economic control of wet flue gas desulfurization (WFGD) systems is still far from meeting practical requirements. In this paper, starting from practical engineering applications and utilizing historical operational data, considering the actual system operation process, the impact of the absorption tower variable-frequency slurry circulation pump on the concentration of sulfur dioxide (SO2) in flue gas under different slurry pH values is investigated. This led to the establishment of a dynamic model for a single-tower double-circulation wet flue gas desulfurization (SD-WFGD) system. Recognizing the significant delay and inertia characteristics of pH value control in the SO2 absorption tank, a desulfurization system pH value desulfurization capacity-based optimization control scheme for the SD-WFGD system is proposed, termed as the Direct Sulfur Control (DSC) strategy. Based on the established dynamic model, a SD-WFGD system series control system is developed using a step generalized predictive control algorithm (GPC) combined with the DSC strategy. Validation results indicate that, compared to SGPC control schemes and traditional PID control schemes, this approach reduces fluctuations in slurry supply and outlet SO2 concentration, significantly enhancing the control performance of the SD-WFGD system. This ensures the safe, stable, economical, and flexible operation of the desulfurization system against the backdrop of flexible operation in coal-fired power plants.

Multi-objective integrated optimization of geothermal heating system with energy storage using digital twin technology

Heat energy storage technology plays a significant role in energy systems, and the various technological solutions brought about by digitalization are especially valuable in the field of energy storage. This article proposes an innovative model based on digital twin technology to solve the supply–demand mismatch problem in geothermal heating systems. This model achieves multi-objective optimization of comprehensive cost, geothermal energy utilization rate, and carbon emission by constructing a heat storage geothermal heating system. Digital twin technology integrates data and information models of public buildings and facilitates their sharing and transmission throughout the entire lifecycle of the geothermal heating system. Initially, the proposed method employs a machine learning-based approach to accurately predict heating demand. Subsequently, the operation of the heat storage water tank and heat pump units is optimized to resolve difficulties in matching energy supply and demand. Finally, the method takes full advantage of time-of-use electricity pricing policies to reduce costs. The data utilized were collected from an office building in China over a period of six months. Experimental results demonstrate that: (1) In terms of predicting heating demand, the improved neural network proposed in this study achieved a prediction accuracy of 98%, which is a 10% improvement over comparative algorithms. Additionally, the experimental comparison of four types of errors showed that the machine learning method proposed had smaller errors across the board. (2) The method realized collaborative multi-objective optimization, and in five scenarios, the comprehensive performance index increased by up to 38.03% compared to the benchmark system. This indicates that intelligent technology is an effective means of enhancing the energy sustainability of geothermal heating systems, and the use of geothermal energy as a clean energy source effectively addresses issues related to the storage, utilization, management, and energy conservation of buildings.

Cold ironing techno-economical study for a port with photovoltaic plants

According to European regulation 2023/1804/EU, all member states shall ensure the availability of cold ironing (CI) in large ports for at least 90 % of the total number of port calls of seagoing ships above 5000 gross tonnes, by the end of 2029. This is a measure expected to improve air quality, especially in the vicinity of the port's urban environment. Preliminary studies show that there are financial viability issues related to CI installations, under the current electricity pricing policies and the high investment cost for CI infrastructure. In this paper, the financial viability of the penetration of photovoltaic (PV) units optimized from spatial and power produced point of view is investigated. The proposed method is applied to various ship types, indicatively for the Thessaloniki Port, taking into consideration the connection with the Medium Voltage (MV) electricity distribution grid, as well as the construction, operation, and maintenance costs, under modified economic criterion of benefit-cost ratio (BCR).

Energy consumption analysis and optimization of cold stores considering differential electricity price

Despite the rapid development of cold stores, most cold store facilities exhibit high energy consumption. Reducing energy costs in cold stores is crucial for minimizing operating expenses and effectively managing the overall cold supply chain. Our objective is to optimize the operational strategy of cold stores based on differential pricing to minimize energy consumption. Firstly, we employ computational fluid dynamics simulation to model the operation of cold stores and determine optimal boundary conditions. Secondly, we propose a comprehensive method for accounting for cold stores' energy consumption by considering heat conduction from the enclosure structure and air seepage. Additionally, under the conditions of extra cool storage at a low electricity price, we divide the cold store operation process into four stages and establish a mathematical model for optimizing energy consumption throughout the entire operational cycle based on differential electricity pricing policies. Finally, three cities are selected for case analysis purposes. The results demonstrate that all three cities achieve an average energy saving level exceeding 8%, with Harbin city achieving over 18% savings specifically, thereby validating that our optimization model can yield superior results in northern cities characterized by significant diurnal temperature variations.

Renewable energy input strategy considering different electricity price regulation policies

This paper examines the impact of the electricity price cap regulation and different policies on renewable energy inputs, electricity prices, demands, and the profits of power firm. Specifically, we compare the impact of the peak-trough electricity price policy (PP policy) and the uniform electricity price policy (UP policy) based on electricity price cap regulation. The findings are as follows: (1) Regardless of the cap, the UP policy consistently results in no lower renewable energy input level and total electricity demand compared to the PP policy. However, power firm earns higher profit in the PP policy. (2) During peak period, the electricity price in the PP policy is not lower than in the UP policy, but the electricity demand is lower. Conversely, during the trough period, the electricity price in the PP policy is lower, and the electricity demand is higher than in the UP policy. (3) When the firm is subject to the electricity price cap regulation, increasing the cap leads to higher electricity prices, renewable energy input levels, total demands, and firm profits. In the absence of the cap regulation, factors of cross-price competition and renewable energy preference increase all equilibrium solutions, while the renewable energy input cost factor has the opposite effect. In the field of renewable energy input, there is no literature considering the impact of the electricity price cap regulation, while our study considers the input behavior of power firm to renewable energy through electricity price cap regulation and different pricing policies. The findings provide substantial theoretical and practical insights for power firm and government in decision-making processes.

PERFORMANCE INVESTIGATION OF A 5 MW PHOTOVOLTAIC SYSTEM: ALFASHIR SUDAN

This study comprehensively analyzes the operational performance and economic feasibility of a 5MW grid-connected photovoltaic in Sudan over a two-year monitoring period. Leveraging the capabilities of PVSyst software, the actual plant performance was rigorously compared to simulation predictions. Results revealed a significant disparity between observed and simulated energy generation, prompting the exploration of potential areas for enhancement. Seasonal fluctuations in the performance ratio were evident, with peak values during some seasons, albeit not consistently aligning with simulation projections. Despite these challenges, the Plant made a notable impact by reducing CO2 emissions, highlighting the environmental benefits of solar energy. Financial analysis unveiled discrepancies between actual and simulated savings, underscoring the need for optimization and efficiency improvements. The equity payback period, influenced by electricity pricing policies, was estimated at 15 years, emphasizing its role in assessing project economics. The region's high radiation intensity and humidity levels emerged as significant factors affecting plant performance. Addressing these challenges is crucial for maximizing the PV plant's operational efficiency and viability. Our Recommendations include thoroughly examining control system functions during commissioning and improving operational accuracy.

Performance analysis of the comprehensive energy system based on active energy storage-discharge technology under time-sharing electricity price operation strategy

Multi-energy complementary comprehensive energy systems based on renewable energy can reliably meet the energy needs of communities and significantly mitigate carbon emissions. This is of paramount significance in the establishment of low-carbon sustainable communities. The effective operation of an integrated energy system necessitates a thorough examination of demand-side load, the dynamic performance of the energy supply system, the configuration of energy storage systems, local electricity pricing policies, and operational or control strategies for the system. It confronts substantial challenges in practical application. Considering the noteworthy performance variations of comprehensive energy systems under diverse demand-side load, fluctuating electricity prices, and various operating modes of energy storage equipment, this paper initially conducts a practical analysis of demand-side load. A comprehensive energy system with multi-energy complementary based on source-load-storage coordination (SLS-CES) model was constructed. From the perspective of system operation strategy, we identify the current electricity consumption pattern in the region, characterized by peak and valley periods. We integrate this information with the time-of-use electricity pricing policy and the equipment within the target area. An operation strategy based on local time-of-use electricity price policy was proposed. An in-depth analysis of the thermal performance, environmental performance, and economic performance of the system in the full-year dimension and typical daily dimension under this operating strategy was conducted. The results show that under this operation strategy, the system's annual net income is 415.90 thousand yuan, of which the system's energy storage battery power supply revenue during peak period reaches 254.40 thousand yuan. The initial investment is 5.03 million yuan, and the static investment payback period is 12.09 years. The annual primary energy saving rate of the system is 36.00%, and the maximum CO2 emission reduction rate is 72.23%. The maximum primary energy saving rates on typical days in winter and typical days in summer are 74.74% and 97.14% respectively. The total annual CO2 emissions were reduced by 5.47 tons and 4.54 tons respectively. Through this study, we found that a system incorporating energy storage equipment, combined with an operation strategy based on electricity price policy, can yield additional economic benefits. This approach helps alleviate peak power supply pressure on the grid and mitigates the challenges associated with the high initial investment in renewable energy systems, all while maintaining good thermal performance and environmental benefits.

Assessment of Electricity Demand Response Potential under Consideration of Uncertainties

Abstract The assessment of customer electricity demand potential is a critical part of further stimulating electricity demand growth and promoting utility development. The main aim of this paper is to investigate how electricity demand response potential can be assessed under uncertainty. The decision variables are set through a two-stage stochastic planning model, focusing on fuzzy decision-making through linear programming in interval planning, combining with consequent opportunity constraint planning and fuzzy opportunity constraint planning to realize artificial regulation of unfavorable factors, and finally completing the treatment of uncertain factors. Combining a Gaussian mixture model to construct a model for measuring electricity demand response potential. It has been found that different electricity pricing policies lead to other potential demand response values for peak electricity load. The optimal electricity pricing and revenue of each user will be greatly affected by the participation of different users in the electricity demand response. The optimal power pricing decreases from 3-4 when the number of users is 4 to 2.5 when the number of users is 20 because of the generation of scale rewards, and the benefits to the users increase substantially when the number of users participating in electricity demand response is 20. Evaluating customer electricity demand in an uncertain environment can help drive electricity system reform to some extent.

Does differential electricity pricing eliminate backward production facilities?——Evidence from China's manufacturing industry

Backward production poses a critical global challenge, especially in developing countries. Differential Electricity Pricing (DEP) policy for energy-intensive industries aimed at countering backward productions since 2004 in China could be a promising and effective policy tool. This is a subject deserving of study, yet the policy effect is ambiguous. Hence, this paper delves into the impact of the DEP policy on backward production, specifically enterprise exiting, by utilizing differential estimations based on enterprise and urban data. Our findings consistently show that the DEP policy steadily increases the probability of energy-intensive enterprises opting to withdraw from the market, primarily driven by its effects on profits and investments. Notably, in the heterogeneity analysis, the DEP policy has more significant effects among non-state-owned, small-sized, and eastern enterprises. Furthermore, we establish a link between the DEP policy's effectiveness and local implementation, revealing that the stronger enforcement results in an enhanced DEP effect on backward production. In the further disscussion, it explores the DEP policy's repercussions on the industrial chain and cleaner production. In conclusion, valuable policy implications touching on industry, environment, overcapacity management, and enterprise exit strategies are provided.

Tech-economic analysis of liquid air energy storage - A promising role for carbon neutrality in China

Liquid air energy storage (LAES), a green novel large-scale energy storage technology, is getting popular under the promotion of carbon neutrality in China. However, the low round trip efficiency of LAES (~50 %) has curtailed its commercialization prospects. Limited research is conducted about the economic analysis, especially on the end-user side, as some national electricity policies may be friendly to the development of LAES. Therefore, a practical LAES system with 100 MW peak electricity output and a 501 MW heating supply is proposed. A typical example system built in Huitong District, Hebei Province, is given. The simple payback period and dynamic payback period are respectively 10.4 years and 6.5 years, while the levelized cost of storage is 0.11 $/kWh and the levelized cost of energy is 0.32 $/kWh. The subsequent economic analyses show that the payback period of the LAES system at the end-user side can be reduced by half compared to the LAES system at the power grid dispatching side, owing to its diversified incomes. There is an optimal peak regulation depth of 20 % in the thermal/renewable power plants integrated with LAES under the effects of the national electricity price policies. Finally, the potential carbon-emission economy of LAES should be taken seriously, particularly in the likely event that the carbon trading market is established. Among the four typical provinces in China, Hubei Province stands out with possible earnings of 0.07–0.074 $M/year, attributed to the sound carbon-emission basis and policies. Overall, the study provides a profound understanding of the application forms of LAES with the assistance of Chinese government policies, which will be vital for the development of energy storage technologies in the future.

Research on the Construction Model of Hydrogen-Electric Integrated Energy Stations in Typical Climate Regions of China

The hydrogen-electric integrated energy station will play an important role in the new power system with renewable energy as the main body. This paper establishes an optimization model for the system configuration of a hydrogen-electricity integrated energy station, further explores the differences in optimal configuration and operation modes of different station construction modes with different basic conditions in different places, and discusses the reasons. The research shows that the economy of the grid-connected mode is the best, and the economy of the off-grid mode is the worst. The local electricity price policy, wind and solar resource endowment, and stability will significantly impact the integrated energy station. At the same time, in the regions where the wind and solar resources fluctuate greatly from month to month, hydrogen can play the role of long-term energy storage.

Progress of increasing-block electricity pricing policy implementation in China's first-tier cities and the impact of resident policy perception

Based on the theory of planned behavior (TPB) and the policy acceptance model (PAM), this study innovatively incorporated policy perception into a theoretical model of residential electricity-saving behavior. Thus, we demonstrated the factors that influence the residential electricity-saving feedback after the implementation of the increasing-block electricity pricing policy (IBP). A questionnaire survey was conducted, and the data was empirically tested on 3108 residents in four typical first-tier cities in China. The results indicated that the perceived economic usefulness, perceived environmental usefulness, and perceived ease of use of the IBP all significantly and positively influenced residents' cutting and investing in electricity-saving feedback. Gender and city heterogeneity were also tested. In addition, questionnaire data from 2016 and 2022 were analyzed in comparison. The results showed that residents' concerns about electricity information, attitudes towards electricity saving, and policy cognition all increased to varying degrees in recent years. Finally, policy recommendations were proposed to promote residents’ policy perception and IBP energy-saving feedback.

Drivers and implications of combined investment in renewables and energy storage in the residential sector

AbstractResidential consumers are increasingly combining renewables with energy storage systems. However, changes in policies and support for these technologies may impact their adoption and the outlook for the energy industry. In this paper, we consider a grid‐connected household's problem of determining the optimal capacities of these two technologies as well as the battery operating policy that minimizes its electricity costs when faced with time‐of‐use electricity prices and sellback credits. We identify the impact of household characteristics, technological progress, and electricity pricing policies on the levels of investment in these two technologies. Furthermore, we supplement our analytical results with a case study of two U.S. cities and identify policy guidelines for the design of a technology subsidy program aimed at stimulating the adoption of these technologies and the ensuing implications for residential customers, the environment, and grid reliability. Our paper has implications for several stakeholders in practice on (i) how the adoption of renewables is affected by energy storage (and vice versa) and (ii) how electricity pricing, technological progress, and subsidy policies can shape the adoption of both technologies.

Optimization of peak-valley pricing policy based on a residential electricity demand model

In order to deal with the rapid growth in residential electricity consumption, residential peak-valley pricing (PVP) policies have been implemented in 12 provinces in China. However, being inappropriate, the residential PVP policies have delivered no significant results. The challenge to China's PVP policy research lies in obtaining high-resolution electricity consumption data and modeling residents' behavior. By simulating household electricity load profiles, an electricity price policy response model and a residential PVP policy optimization model, are constructed and applied in this paper to simulate the effect of the current residential PVP policy and optimize the policy. The results show that the peak-shaving capability (represented by the reduction in peak load) of the PVP policy in 11 provinces is less than 3%, while the PVP policy in Gansu Province has increased household electricity bills by about 5.7%. In addition, the optimized PVP can reduce household electricity bills by 3% and reduce peak electricity consumption by about 9%. The 12 provinces should adopt the 3-phase division method and optimize the electricity price in the peak and valley (i.e. off-peak) periods respectively. This paper promotes the research on China's residential PVP policy and provides an effective reference for the design of the PVP policy.

The Relationship between Electricity Prices and Household Welfare in South Africa

The study examines the relationship between electricity prices and household welfare in South Africa. The study employs a demand system framework on annual time-series data from 2000 to 2018 and the analysis involves the calculation of price elasticities and measurement of welfare changes. The price elasticities in this study are drawn from the linear expenditure demand model. To analyse welfare change, we consider the impact of electricity pricing policies on cost of living (proxied by the consumer price index and households’ expenditure patterns). The study achieves this: (i) by comparing electricity price movements to changes in the rate of inflation between 2000 and 2018; (ii) by regressing total household energy expenditure against household expenditure on electricity, to examine how electricity costs affect a household’s overall energy bills; and (iii) thirdly, by regressing household food expenditure against households’ electricity expenditure to determine how the latter affects a household’s ability to spend on other basic goods and services. The results of the study show: (i) South African household electricity demand is inelastic to changes in price of electricity; (ii) electricity prices in the country increased at a higher rate than the rate of inflation for most of the time during the study period, suggesting that households incurred increased expenditures to achieve their desired utility or satisfy their energy needs during this period; (iii) household total electricity expenditure is positively related to household total energy expenditure, implying that high household expenditure on electricity exerts upward pressure on the overall household energy budgets; and (iv) household total food expenditure is negatively related to household total energy expenditure. This shows that while policy makers achieved significant success with providing physical access to electricity, affordable access to this basic service is still a concern and affects the overall welfare of households in the country. The study recommends a review of the country’s electricity tariff structure to make affordability a key objective. Moreover, the study calls for coordinated efforts in addressing Eskom challenges which have also played a contributing role to the current energy crisis, characterized by an unreliable electricity supply and constantly increasing electricity prices.

The impact of China's Differential Electricity Pricing policy on fossil fuel consumption

AbstractChina, the world's largest energy consumer, has been increasingly relying on pricing policies to improve energy efficiency in recent years. This paper estimates the impact of Differential Electricity Pricing (DEP) policy, which covers the most energy‐intensive industries in China. Under the DEP policy, electricity surcharges are imposed on enterprises using “eliminated” and “restricted” production technologies, of which the “eliminated” enterprises are more backward in technology level and are charged much higher electricity tariffs. We exploit a differences‐in‐differences approach to assess the effect of the DEP policy on fossil fuel consumption. The results indicate that the DEP policy led to a reduction in coal consumption intensity (CCI) of “eliminated” enterprises, which can be explained by the obsoleting of backward equipment in these enterprises. As for the “restricted” enterprises, it was economically optimal to continue to use “restricted” equipment; consequently, the DEP policy had no significant impact on CCI.

Research on Passive Reconstruction and Energy Supply System of Existing Buildings in Cold Areas

Faced with the problems of existing buildings in cold areas, such as poor insulation performance of envelope, high heating cost and substandard indoor temperature in winter, based on DeST-h energy consumption simulation software, taking typical single buildings in Zhangjiakou as an example, several factors affecting building energy consumption were analyzed. The building energy consumption values in heating season under 9 envelope reconstruction conditions were obtained by orthogonal experiments, and 4 different energy supply systems were designed for buildings under 9 envelope reconstruction conditions. The “with or without comparison method” is used to evaluate the building energy efficiency of 40 working conditions after the superposition of the initial state and passive transformation of existing buildings in the whole life cycle. The evaluation results show that the external wall insulation and extrusion plate thickness is 80 mm, the roof insulation and extrusion plate thickness is 100 mm, and the glass type is ordinary hollow glass ( 6 + 9 + 6 ). The air source heat pump assisted energy supply effect is the best, but the overall economy will change with the initial investment, local electricity price policy and building scale.

Does the current tiered electricity pricing structure still restrain electricity consumption in China's residential sector?

The tiered electricity pricing (TEP) policy in China was implemented for 10 years. With the rapid economic growth and changing in residential consumption behavior, whether the initial design is still effective for electricity conservation and residential affordability is a worthy topic. By survey data of China Family Panel Studies project, this paper examined the policy effect of TEP from perspective of the threshold settings, long-term electricity conservation and residential affordability. Firstly, the Extended Linear Expenditure System was proposed to evaluate the basic needs of residents, and the results showed that the threshold value was still reasonable. Secondly, the long-term effect of TEP on electricity consumption for different tiered residents was estimated by DID method. Although the third-tier residents showed more obvious electricity-saving behaviors compared with the second-tier residents, the policy effect on residents’ electricity-saving behavior was weakening and the expected policy effect was gradually being released. Lastly, the further assessment of the residents' welfare loss and electricity expenditure showed that the policy reform was still within the affordable range of the residents. In order to maintain the effectiveness of the policy, the government should further optimize the TEP structure to promote residential electricity saving behavior.

Numerical Research on the Performance of a Phase Change Heat Storage Electric Heating Module

A kind of phase change heat storage electric heating modules filled with the composite PCM was designed and fabricated in this paper. The thermal performance of the module was studied through the experiments, and the thermal performance influencing factors were studied using the FLUENT software. Simulation results indicated that the optimal thermal conductivity of the PCM should be between 3 W/(m·K) and 5W/(m·K). With the designed arrangement of the heating wire, the optimal electric heating power should be between 9.00W/m and 9.85W/m, and the corresponding adjustments should be made according to the local electricity price policy. When the electric heating power is 9.85W/m and the thermal conductivity is 4W/(m·K), the distance between the heating wire should be between 40mm and 45mm, which can ensure the high heat-storage efficiency and heating continuity. In general, the internal temperature of the module is relatively uniform and can maintain stable heat dissipation within the effective heating range for a long time. The temperature fluctuation of the module heat dissipating surface is small. The module has good thermal performance and can meet the heating requirements when being applied to electric radiant heating in the building.