Peak-valley Price Research Articles

The Impact of Carbon Emission Quota Allocation Regulations on the Investment of Low-Carbon Technology in Electric Power Industry Under Peak-Valley Price Policy

This article focuses on carbon emission quota allocation regulations and their impact on investments in low-carbon technology within the electric power industry, as well as other enterprises’ decisions and profits under peak-valley price policy and cap-and-trade mechanism. An electricity supply-chain model is constructed in a Stackelberg game, which comprises an electricity-generating enterprise (leader) and an electricity retailer (follower). The backward-induction method is used to obtain the investment in low-carbon technology and electricity price under three scenarios of carbon emission quota allocation regulations: no regulation, grandfathering allocation, and benchmarking allocation. The main results are: first, benchmarking allocation always results in higher investment in low-carbon technology, but generates greater total carbon emissions than grandfathering allocation under most conditions; and second, under benchmarking allocation, as the unit carbon emission quota increases, total carbon emissions first increase and then decrease. Therefore, benchmarking allocation is the better regulation for the low-carbon technology investment. Moreover, benchmarking allocation is also the better regulation for total carbon emissions with a higher unit carbon quota or a higher carbon price.

Dynamic economic evaluation of hundred megawatt-scale electrochemical energy storage for auxiliary peak shaving

With the rapid development of wind power, the pressure on peak regulation of the power grid is increased. Electrochemical energy storage is used on a large scale because of its high efficiency and good peak shaving and valley filling ability. The economic benefit evaluation of participating in power system auxiliary services has become the focus of attention since the development of grid-connected hundred megawatt-scale electrochemical energy storage systems (ESS). Based on the relationship between power and capacity in the process of peak shaving and valley filling, a dynamic economic benefit evaluation model of peak shaving assisted by hundred megawatt-scale electrochemical ESS considering the equivalent life of the battery is proposed. The model considers the investment cost of energy storage, power efficiency, and operation and maintenance costs, and analyzes the dynamic economic benefits of different energy storage technologies participating in the whole life cycle of the power grid. Then, according to the current ESS market environment, the auxiliary service compensation price, peak-valley price difference and energy storage cost unit price required to make the energy storage technology achieve the balance of payments are calculated, and the economic balance points of different energy storage types are clarified. Finally, based on the measured data of different provincial power grids, the economies of six energy storage types applied to three provincial power grids are compared and analyzed, and the rationality and effectiveness of the relevant models proposed are verified. The work has theoretical guiding significance for the economic benefit evaluation of hundred megawatt-scale electrochemical energy storage.

A method for sizing air source heat pump and electric boiler considering the peak and valley electricity prices

In a combined air source heat pump and electric boiler heating system, the capacity an oversized heat pump increases investment costs but decreases operation costs, and vice versa. Most current equipment selection methods are complex and ignore the impact of the peak valley price policy on system costs. This often leads to the selection of oversized equipment for the actual project, resulting in an increase in the total cost of the system. Therefore, we propose a new calculation method. The optimal number of non-guaranteed days for the air source heat pump (OGD) was used as the reference value for the calculation. A new optimization module was developed, and a system simulation model was built using Trnsys. The variation patterns of the OGD for 12 groups of buildings in Changchun, China, were analyzed. Finally, OGD recommendations were provided for 35 important cities in China. The results showed that OGD was not affected by changes in the building type or equipment installation costs. The average error of the annual cost calculation for different building types was 0.074%, and the maximum error was 1.7% when the equipment investment cost was changed. In addition, the OGD value was affected by a combination of outdoor temperature and local electricity prices. This value gradually decreased as the climate warmed. For regions with unfavorable price policies, such as Kashgar, China, the recommended local OGD value increased by 75.8%. The proposed method can be used as a methodological complement to the calculations of such systems during the design phase.

Daytime and Overnight Joint Charging Scheduling for Battery Electric Buses Considering Time-Varying Charging Power

This work investigates the joint daytime and overnight charging scheduling problem associated with battery electric buses (BEBs) at a single charging station. The objective is to minimize the total charging costs of all BEBs. Two important factors, i.e., peak–valley price and time-varying charging power, are considered to depict real-world charging situations. We establish a mixed-integer programming model for the considered problem, and then conduct a case study together with sensitivity analysis. Numerical results show that compared with the existing first come, first serve rule-based charging solution, the charging schedule obtained by solving the established model via the CPLEX solver can save 7–8% of BEB charging costs. Hence, our model could be applied to improve the BEB charging schedule in practice.

Research on improvement of regulation ability of new power system in Guizhou province

Guizhou Province is an important energy base for the "west-to-east power transmission" in China. Beneficial from the strategic goal of "carbon peaking and carbon neutrality" proposed by the Chinese government, the new energy such as wind and photovoltaic power in Guizhou is stepping to an expressway gradually. The equipped capacitor of renewable generation is aim to add 23.3 GW during the period of "Fourteenth Five-Year Plan" and expand to 40.0 GW by 2025, accounting for about 36.2% of the total equipped capacity of renewable generation. For the characteristic such as intermittent, fluctuating and random, etc. of the output of new energy, the large-scale grid connection will introduce new challenges to the safe and continuous operation of power system. In order to meet the needs of multi-scenario applications such as peak regulation and frequency modulation of new power system in Guizhou Province, this paper proposed a scheme of improvement of regulation ability through researching regulation ability improving methods, such as flexible transformation of coalfired power, hydro-power expansion, pumped storage and new energy storage system (ESS) construction, etc. The results show that by 2025, in Guizhou Province, about 10% of the new ESS capacity will be installed on the power source side. Independent ESS projects will be built according to the peak shaving needs of the power system on the grid side, and several new ESS projects are advised for demonstration purposes on the load side due to it is difficult to recover the cost of ESS by relying only peak-valley price difference. This research results can work as a decision-making reference for the improvement of regulation capacity of new power system and the planning t of new energy storage in Guizhou Province.

Economic benefit evaluation model of distributed energy storage system considering custom power services

This paper proposes an economic benefit evaluation model of distributed energy storage system considering multi-type custom power services. Firstly, based on the four-quadrant operation characteristics of the energy storage converter, the control methods and revenue models of distributed energy storage system to provide reactive power compensation, new energy consumption, peak-valley arbitrage and other customized power services are analyzed. Secondly, an economic benefit evaluation model of custom power services is formulated, considering the life cycle degradation cost, investment payback period, net present value, and internal return rate of energy storage. Finally, demonstrate the effectiveness and superior performance of the proposed methodology through comparative studies on the economic benefits and practical value. The influence of reserve capacity ratio of energy storage converter, additional price for power quality management, peak-valley price difference, battery cost and project cycle on the annual return and internal rate of return is revealed through the sensitivity analysis, which provides the decision-making reference for battery selection and capacity allocation of distributed energy storage system participating in various custom power services.

How to promote the widespread commercial adoption of photovoltaic microgrids under investment uncertainty? A real options analysis in China

Microgrids can integrate the production and consumption process of renewable energy and realize the sustainable development of power systems. However, it remains difficult to promote the widespread commercial adoption of photovoltaic microgrids due to high costs. This study develops a real options model for it to assess peak-valley electricity prices and electricity price subsidies under the uncertainties in the initial investment dynamic. The adjustment mechanism is also established in the real options model to analyze the tendency of incentive policies changing with uncertainty. The results demonstrate that the optimal electricity price subsidies of 31 provinces in China range from 0.30 RMB/kWh to 1.05 RMB/kWh, and the optimal rates of peak-valley price range from 3.09 to 6.32. On this basis, we conduct a sensitivity analysis of optimal electricity price subsidy and peak-valley price rate and find that the threshold goes down significantly as the cost goes down. However, rapid cost variations and fluctuations make developers hesitate to invest, which will seriously hinder the widespread commercial adoption of PV microgrids. This study extends the understanding of participants' strategies in a dynamic framework by analyzing the impacts of uncertainty on investment decisions. We suggest developers pay attention to the changes in the market and reduce investment risks by signing option contracts. A stable investment market corresponds to smaller peak-valley price rates and less electricity price subsidies. The policy-maker should provide flexible and efficient incentives depending on the application scenario. It is also suggested that in areas lacking solar resources, the government should not only speed up the establishment of peak-valley electricity prices but also provide long-term subsidies.

Energy management scheme of single‐phase electric energy router with two‐layer intelligent control combined with optimal scheduling of battery

As a key equipment in energy internet, the Electric Energy Router (EER) which takes the converter as the core device solved the problems of power diversity and multi-directional flow of power. This paper designs a household single-phase electric energy router (SPEER), and proposes an energy management scheme with two-layer intelligent control combined with optimal scheduling of battery under isolated grid and grid-connected conditions. The upper instruction layer mainly uses holistic intelligent decision-making and the lower execution layer controls each converter to complete the energy management of the entire system according to the upper instructions. In the isolated grid, The SPEER operates in three modes based on AC/DC distributed generation, AC/DC load and energy storage status to maintain the stability of the system. When connected to the grid, according to the actual situation of a certain place and the peak-valley price policy, the charging/discharging time and power flow direction of the battery can be optimized, which can improve the operating economy. Finally, the correctness of the proposed energy management scheme was verified through experiments.

Analysis of flexible energy use behavior of rural residents based on two-stage questionnaire: A case study in Xi’an, China

Effective use of flexible load has practical significance in promoting energy system reform in rural areas by reducing the mismatch between energy production and consumption. However, the flexible energy consumption behavior of rural residents cannot be fully analyzed by the traditional one-stage questionnaire survey, which is mainly designed to study the fixed energy use behaviors. In this study, a two-stage questionnaire-based survey was developed to analyze the flexible energy use behavior of rural residents in suburban areas of Xi’an in China. We classified the interviewed rural residents into four groups according to their plans for adjusting energy consumption. According to the survey results, residents who chose to use both peak-valley price and photovoltaic systems (11%) were most willing to adjust various devices that use energy, while residents who chose to keep the original fixed electricity prices (33%) were the least willing to adjust their energy use habits. The results also indicate that there exists available flexible load potential in rural areas, but the effects of implementation largely depend on the rationality of technical paths and support policies.

Two-Part Tariff of Pumped Storage Power Plants for Wind Power Accommodation

Pumped storage power plants face many challenges in competing in the electricity market, and high pumping costs lead to high prices for their power generation, which is one of the important factors that has limited their development. To address this problem, this paper studies the pumped storage two-part tariff mechanism considering wind power accommodation and uses the peak-valley price difference of wind power to realize the rationality and economy of a pumped storage charging and discharging strategy. It can improve the competitiveness of pumped storage power plants participating in electricity market transactions. Then, by considering the economic advantages of “pumped storage + clean energy”, a pumped storage and wind power joint optimal dispatching model was established based on the original pumped storage pricing method. This model takes the total system cost reduction after the introduction of pumped storage as the objective function to derive a reasonable pumped storage strategy. After which, the two-part tariff for pumped storage power plants was formulated based on the principle of reasonable revenue. Finally, a sensitivity analysis of various relevant parameters of the power plant was conducted through case studies to verify the effectiveness of the two-part tariff mechanism of pumped storage. It was found that the electricity tariff is lowest when the ratio of plant capacity to upper reservoir capacity is 1:6.37 (MW/million m3).

Economic Boundary Analysis of Echelon Utilization of Retired Power Battery Considering Replacement Cost

As a large number of new energy electric vehicles are retired, the sequential utilization of retired power batteries has become one of the important means to improve the economic benefits of batteries, but there is a problem of disunity between available capacity and cycle life. Therefore, a peak-load power distribution method based on the principle of equal life of retired power batteries was proposed, which could effectively avoid the life difference caused by the battery difference and reduce the replacement cost. At the same time, in order to give reasonable investment suggestions for the stepwise utilization of retired power batteries, three economic boundary value models, including the payback period, peak–valley price difference, and investment cost, were constructed based on the leveling cost. Through the simulation of a 60 MW/160 MWh lithium iron phosphate decommissioned battery storage power station with 50% available capacity, it can be seen that when the cycle number is 2000 and the peak–valley price difference is above 0.8 yuan/kWh, it has investment value.

Optimized Configuration and Operating Plan for Hydrogen Refueling Station with On-Site Electrolytic Production

Hydrogen refueling stations (HRSs) are critical for the popularity of hydrogen vehicles (fuel cell electric vehicles—FCEVs). However, due to high installation investment and operating costs, the proliferation of HRSs is difficult. This paper studies HRSs with on-site electrolytic production and hydrogen storage devices and proposes an optimization method to minimize the total costs including both installation investment and operating costs (OPT-ISL method). Moreover, to acquire the optimization constraints of hydrogen demand, this paper creatively develops a refueling behavior simulation method for different kinds of FCEVs and proposes a hydrogen-demand estimation model to forecast the demand with hourly intervals for HRS. The Jensen–Shannon divergence is applied to verify the accuracy of the hydrogen-demand estimation. The result: 0.029 is much smaller than that of the estimation method in reference. Based on the estimation results and peak-valley prices of electricity from the grid, a daily hydrogen generation plan is obtained, as well as the optimal capacities of electrolyzers and storage devices. As for the whole costs, compared with previous configuration methods that only consider investment costs or operating costs, the proposed OPT-ISL method has the least, 8.1 and 10.5% less, respectively. Moreover, the proposed OPT-ISL method shortens the break-even time for HRS from 11.1 years to 7.8 years, a decrease of 29.7%, so that the HRS could recover its costs in less time.

Research on electricity supply chain strategy coordination considering peak-valley pricing policy and service quality investment

An electricity supply chain game model composed of electricity generation enterprise and electricity retailer enterprise is constructed to evaluate the impact of service quality and peak-valley pricing on electricity supply chain coordination mechanism. Decisions on electricity service quality and peak-valley pricing are studied. Following this, the contract coordination under the electricity supply chain is discussed. Based on the game framework, the main research results are as follows. First, the centralized system provides a lower peak-valley price and higher electricity service quality, electricity demand, and supply chain’s profit compared with the decentralized system. Second, with the service quality sensitivity coefficient, the electricity service quality, electricity price, and electricity demand increase, increasing the profit. Third, with the electricity service quality cost coefficient, the electricity service quality, electricity price, and electricity demand decrease, reducing the profit. Fourth, revenue sharing and an electricity service quality investment cost-sharing contract could achieve the coordination of the supply chain.

Optimization of the hybrid solar power plants comprising photovoltaic and concentrating solar power using the butterfly algorithm

This study optimized grid intermittency and instability resulting from photovoltaic (PV) by adding concentrating solar power (CSP) equipped with thermal energy storage (TES), which can be used to form hybrid solar power for grid dispatching. The PV–CSP were optimized by using a hybrid butterfly algorithm to meet the power generation demands and lowest system operation costs. Based on the optimal output and operating characteristics of hybrid power, the economics of peak-valley and fixed electricity prices were studied and compared. The optimal TES capacity was 6-h electricity generation. Hybrid power with optimal TES capacity could achieve a 4.2% increase for power production and 10.4% decrease for operation cost. The peak-valley price provided a better economic benefit than the fixed electricity price. A reasonable configuration of TES can ensure the flexibility and stability of hybrid plant. Hybrid power contributes to a flexible use of dispatch capabilities by equipped with TES, making PV power completely utilize, especially during the periods of high solar radiation. For power systems, hybrid power can be used to replace partly conventional thermal power to achieve highly economic and environmental benefits.

Techno-economic analysis of multi-generation liquid air energy storage system

• Economic model of the multi-generation LAES system was established. • Economic analysis of the multi-generation LAES system was carried out. • Internal rate of return of the multi-generation system in Beijing reached 35%. • Dynamic payback period is most susceptible to the influence of uncertain factors. Multi-generation liquid air energy storage (LAES) system solves the shortcoming that the compression heat cannot be fully utilized in the general LAES system, and greatly improves the round-trip efficiency. Which is expected to become one of the most promising emerging energy technologies and has important research value and exploration significance. In order to prove the feasibility that the multi-generation LAES technology using peak-valley price difference for profits, this paper established the economic calculation model by life cycle cost theory. Based on peak-valley electricity price, heating price and cooling price of four typical cities in China, the cost analysis, profit analysis, breakeven analysis, sensitivity analysis and subsidy analysis of the multi-generation LAES system are carried out. The results show that the energy storage system has good economic benefits only in Beijing under the single electricity supply mode, the rate of return on investment is 12.5%, the internal rate of return is 25%, the static payback period is 6.25 years, and the dynamic payback period is 8.08 years. Under the multi-generation mode, the multi-generation LAES system has good economic benefits both in Beijing and Suzhou. Among them, the rate of return on investment in Beijing is increased 28.16% contrasted with the single electricity supply mode, the internal rate of return is increased 40%, the static payback period is decreased 34.88%, the dynamic payback period is decreased 42.33%. This study indicated that the multi-generation LAES system has strong market adaptability and risk resistance ability.

Research on electric heating integrated system based on multi-factor game equilibrium

Taking the electric heating joint market as the research object, based on the standard Nash game model framework, a two-stage game model consisting of consumers, energy suppliers and electric heating joint trading center is established. It reveals the electric heating joint trading center and the consumer game mechanism, analyzes the game process, and proposes the overall structure of the game in the electric heating joint market, uses a distributed algorithm to solve the model, and establishes the optimal strategy for the interests of both parties. Finally, the model was simulated and verified, and the conclusion showed that the peak-to-average ratio decreased to 1.42 by using the method in this paper, which is lower than the value of 1.51 in the traditional method. The fluctuation range of electricity price is between 9.43∼18.56 ￠ / kWh, and its highest and lowest values are both smaller than the peak-valley price in the time-of-use tariff strategy.

Idiosyncratic information spillover and connectedness network between the electricity and carbon markets in Europe

With a systematic approach, this study investigates the roles of the peak-valley prices and idiosyncratic factors in the information spillover mechanism between the electricity and carbon markets in Europe. Our findings show that electricity demand plays a crucial role in the idiosyncratic information spillover channel, especially in the risk spillover channel. Moreover, the German and Austrian electricity market operators reveal the dominating power in the system while the carbon market is the net information receiver from the system. The results also indicate that the EU-ETS functions well in prompting the integration of European electricity market and reducing the greenhouse gas emission. Crucially, we find that after the “clean energy for all Europeans” package were adopted in 2016 by the European Commission, the European internal electricity markets gradually integrated. The results provide supportive evidence for the effectiveness of the new rule on developing a single European electricity market. Our research can provide useful information for policy-makers, regulators, and investors.

Characterization of interaction between electric vehicles and smart grid

With the development of smart distribution technology in the future, electric vehicle users can not only charge reasonably based on peak-valley price, they can also discharge electricity into the power grid to realize their economic benefit when it’s necessary and thus promote peak load shifting. According to the characteristic that future electric vehicles can discharge, this paper studies the interactive characteristics between electric vehicles and smart grid. In this paper, the example shows that the charging and discharging behaviour of EV users will bring significant fluctuation effect to the power grid load, and the reasonable TOU strategy can stimulate EV users to conduct reasonable charging and discharging, so as to smooth the peak and valley difference of some power grid.

Dynamic Time-Of-Use Pricing Strategy for Electric Vehicle Charging Considering User Satisfaction Degree

In order to solve the problem that the static peak-valley price for electric vehicles cannot truly reflect the relationship between electricity supply and demand, as well as the fact that the low utilization rate of renewable energy in the micro-grid, a dynamic time-of-use pricing strategy for electric vehicle charging considering user satisfaction degree is proposed, to achieve the goal of friendly charging for the micro-grid. Firstly, this paper researches the travel patterns of electric vehicles to establish the grid connection scenes and predict the controllable capacity of electric vehicles. Secondly, the charging preferences of different types of users are studied, and a comprehensive satisfaction degree model is set up to obtain different users’ charging strategies. Furthermore, the paper raises a pricing strategy on account of the dispatching requirements of the micro-grid, and realizes the effective dispatch of electric vehicle charging load based on price signals. Finally, we gain the dynamic time-of-use charging price, using the strategy proposed above, and the economic benefits brought to the micro-grid and electric vehicle users are analyzed, which validates the rationality and effectiveness of the pricing strategy.

Strategic Research on the Urban Natural Gas Energy System Under the Path to Ecological Civilization: Fuyang City Case Study

To help meet the strategic development needs of urban energy systems today and reduce carbon emissions, natural gas can play a pivotal transition role, especially in a country such as China which has relied very heavily on coal for decades. Though making significant towards the maximum possible use of clean, renewable forms of energy, such as hydro, thermal, solar and wind power, it will be a long time yet before China can completely abandon the use of fossil fuels. . In this paper, using Fuyang City in Anhui Province as a case study, a four-dimensional differential equation model, based on the consumption, price, economic growth, and “ecological civilization construction” of natural gas energy, is developed which incorporates concepts and calculations of natural gas energy intensity, “natural gas ecological civilization intensity”, and “economic ecological civilization intensity”. It is the first attempt ever made to quantify the construction of urban ecological civilization and discuss the evolutionary relationship among the internal variables of the system . Regression analysis, data fitting, neural network, and other methods are used to confirm the parameters of the system model. Through Matlab simulation of each variable and using an evolution map, a quantitative understanding of the role of natural gas is generated. The research findings reveal that paying attention to the environmental aspects of energy consumption is beneficial to economic growth. The paper concludes that, at present, the best ways for China to reduce its carbon emissions are to implement a market price and peak–valley prices for natural gas, improve the tiered price mechanism, appropriately reduce the economic growth rate, continue to adjust the industrial structure away from heavy industry and scientifically manage the natural gas energy system. These reforms are of great practical significance in working towards a sustainable development path for the city.