IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v165y2016icp548-558.html
   My bibliography  Save this article

An analysis of the power market in Saudi Arabia: Retrospective cost and environmental optimization

Author

Listed:
  • Groissböck, Markus
  • Pickl, Matthias J.

Abstract

This paper provides an overview of the power sector in the Kingdom of Saudi Arabia (KSA) with the latest data and applies a retrospective modeling approach for its power market under (i) a cost minimization and (ii) an environmental impact minimization objective for the period 2003–2013 with domestic and international fuel prices. For the analysis an enhanced version of Open Source energy MOdelling SYStem (OSeMOSYS) is utilized. Implemented model improvements include (a) temperature adjustments as the temperature difference between winter and summer of 20–30°C is common almost all over the world and has significant impact on power generation efficiency, (b) a multi-objective target function considering both costs and emissions to create a Pareto frontier, and (c) emissions are assessed with the ‘quality enhanced life days’ (QELD) indicator to consider global (e.g. carbon dioxide) and local emissions (e.g. NOx) simultaneously. Results show that the biggest reductions in emissions can be reached by considering international fuel prices. While the amount of new technology is quite similar within the minimize emission cases, the installed type of technology differs significantly within the minimize cost cases: cost minimization with international fuel prices is forcing Combined Cycle Gas Turbine (CCGT or CC) plants and Steam Turbine (ST) plants whereas when considering domestic fuel prices, the share of inefficient Open Cycle Gas Turbine (OCGT or GT) plants is 100%. Focusing on emission reduction within the international fuel price scenario a 19% cost increase results in 43% emission reductions while a 33% cost increase reduces emissions by 60%. Notably, an emission reduction of 50% can be reached independently of fuel pricing when the weight of emission criterion is 95% or higher within the enhanced OSeMOSYS model.

Suggested Citation

  • Groissböck, Markus & Pickl, Matthias J., 2016. "An analysis of the power market in Saudi Arabia: Retrospective cost and environmental optimization," Applied Energy, Elsevier, vol. 165(C), pages 548-558.
    • Handle: RePEc:eee:appene:v:165:y:2016:i:c:p:548-558
    DOI: 10.1016/j.apenergy.2015.12.086
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261915016591
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2015.12.086?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chaudry, Modassar & Jenkins, Nick & Qadrdan, Meysam & Wu, Jianzhong, 2014. "Combined gas and electricity network expansion planning," Applied Energy, Elsevier, vol. 113(C), pages 1171-1187.
    2. Cludius, Johanna & Hermann, Hauke & Matthes, Felix Chr. & Graichen, Verena, 2014. "The merit order effect of wind and photovoltaic electricity generation in Germany 2008–2016: Estimation and distributional implications," Energy Economics, Elsevier, vol. 44(C), pages 302-313.
    3. Li, Chiao-Ting & Peng, Huei & Sun, Jing, 2014. "Life cycle cost analysis of wind power considering stochastic uncertainties," Energy, Elsevier, vol. 75(C), pages 411-418.
    4. McConnell, Dylan & Hearps, Patrick & Eales, Dominic & Sandiford, Mike & Dunn, Rebecca & Wright, Matthew & Bateman, Lachlan, 2013. "Retrospective modeling of the merit-order effect on wholesale electricity prices from distributed photovoltaic generation in the Australian National Electricity Market," Energy Policy, Elsevier, vol. 58(C), pages 17-27.
    5. Shahmohammadi, M. Sadegh & Mohd. Yusuff, Rosnah & Keyhanian, Sina & Shakouri G., Hamed, 2015. "A decision support system for evaluating effects of Feed-in Tariff mechanism: Dynamic modeling of Malaysia’s electricity generation mix," Applied Energy, Elsevier, vol. 146(C), pages 217-229.
    6. Walmsley, Michael R.W. & Walmsley, Timothy G. & Atkins, Martin J. & Kamp, Peter J.J. & Neale, James R., 2014. "Minimising carbon emissions and energy expended for electricity generation in New Zealand through to 2050," Applied Energy, Elsevier, vol. 135(C), pages 656-665.
    7. Zhang, Qi & Mclellan, Benjamin C. & Tezuka, Tetsuo & Ishihara, Keiichi N., 2013. "An integrated model for long-term power generation planning toward future smart electricity systems," Applied Energy, Elsevier, vol. 112(C), pages 1424-1437.
    8. Youngho Chang & Yanfei Li, . "Power Generation and Cross-border Grid Planning for the Integrated ASEAN Electricity Market: A Dynamic Linear Programming Model," Chapters, in: Yanrui Wu & Xunpeng Shi & Fukunari Kimura (ed.), Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies, chapter 4, pages 59-82, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Alnaser, W.E. & Alnaser, N.W., 2011. "The status of renewable energy in the GCC countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 3074-3098, August.
    10. Stadler, M. & Groissböck, M. & Cardoso, G. & Marnay, C., 2014. "Optimizing Distributed Energy Resources and building retrofits with the strategic DER-CAModel," Applied Energy, Elsevier, vol. 132(C), pages 557-567.
    11. Rodriguez, Rolando A. & Becker, Sarah & Greiner, Martin, 2015. "Cost-optimal design of a simplified, highly renewable pan-European electricity system," Energy, Elsevier, vol. 83(C), pages 658-668.
    12. Wu, Jung-Hua & Huang, Yun-Hsun, 2014. "Electricity portfolio planning model incorporating renewable energy characteristics," Applied Energy, Elsevier, vol. 119(C), pages 278-287.
    13. Farnoosh, Arash & Lantz, Frederic & Percebois, Jacques, 2014. "Electricity generation analyses in an oil-exporting country: Transition to non-fossil fuel based power units in Saudi Arabia," Energy, Elsevier, vol. 69(C), pages 299-308.
    14. Welsch, Manuel & Deane, Paul & Howells, Mark & Ó Gallachóir, Brian & Rogan, Fionn & Bazilian, Morgan & Rogner, Hans-Holger, 2014. "Incorporating flexibility requirements into long-term energy system models – A case study on high levels of renewable electricity penetration in Ireland," Applied Energy, Elsevier, vol. 135(C), pages 600-615.
    15. Hasanbeigi, Ali & Price, Lynn & Fino-Chen, Cecilia & Lu, Hongyou & Ke, Jing, 2013. "Retrospective and prospective decomposition analysis of Chinese manufacturing energy use and policy implications," Energy Policy, Elsevier, vol. 63(C), pages 562-574.
    16. Howells, Mark & Rogner, Holger & Strachan, Neil & Heaps, Charles & Huntington, Hillard & Kypreos, Socrates & Hughes, Alison & Silveira, Semida & DeCarolis, Joe & Bazillian, Morgan & Roehrl, Alexander, 2011. "OSeMOSYS: The Open Source Energy Modeling System: An introduction to its ethos, structure and development," Energy Policy, Elsevier, vol. 39(10), pages 5850-5870, October.
    17. Almansoori, Ali & Betancourt-Torcat, Alberto, 2015. "Design optimization model for the integration of renewable and nuclear energy in the United Arab Emirates’ power system," Applied Energy, Elsevier, vol. 148(C), pages 234-251.
    18. Thiam, Djiby-Racine & Benders, René M.J. & Moll, Henri C., 2012. "Modeling the transition towards a sustainable energy production in developing nations," Applied Energy, Elsevier, vol. 94(C), pages 98-108.
    19. De Felice, Matteo & Alessandri, Andrea & Catalano, Franco, 2015. "Seasonal climate forecasts for medium-term electricity demand forecasting," Applied Energy, Elsevier, vol. 137(C), pages 435-444.
    20. Gately, Dermot & Al-Yousef, Nourah & Al-Sheikh, Hamad M.H., 2013. "The rapid growth of OPEC′s domestic oil consumption," Energy Policy, Elsevier, vol. 62(C), pages 844-859.
    21. Aliyu, Abubakar Sadiq & Ramli, Ahmad Termizi & Saleh, Muneer Aziz, 2013. "Nigeria electricity crisis: Power generation capacity expansion and environmental ramifications," Energy, Elsevier, vol. 61(C), pages 354-367.
    22. Alyousef, Yousef & Stevens, Paul, 2011. "The cost of domestic energy prices to Saudi Arabia," Energy Policy, Elsevier, vol. 39(11), pages 6900-6905.
    23. Mansouri, Noura Y. & Crookes, Roy J. & Korakianitis, Theodosios, 2013. "A projection of energy consumption and carbon dioxide emissions in the electricity sector for Saudi Arabia: The case for carbon capture and storage and solar photovoltaics," Energy Policy, Elsevier, vol. 63(C), pages 681-695.
    24. Welsch, M. & Howells, M. & Bazilian, M. & DeCarolis, J.F. & Hermann, S. & Rogner, H.H., 2012. "Modelling elements of Smart Grids – Enhancing the OSeMOSYS (Open Source Energy Modelling System) code," Energy, Elsevier, vol. 46(1), pages 337-350.
    25. Brand, Bernhard & Missaoui, Rafik, 2014. "Multi-criteria analysis of electricity generation mix scenarios in Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 251-261.
    26. Talavera, D.L. & Pérez-Higueras, P. & Ruíz-Arias, J.A. & Fernández, E.F., 2015. "Levelised cost of electricity in high concentrated photovoltaic grid connected systems: Spatial analysis of Spain," Applied Energy, Elsevier, vol. 151(C), pages 49-59.
    27. Fairuz, S.M.C. & Sulaiman, M.Y. & Lim, C.H. & Mat, S. & Ali, B. & Saadatian, O. & Ruslan, M.H. & Salleh, E. & Sopian, K., 2013. "Long term strategy for electricity generation in Peninsular Malaysia – Analysis of cost and carbon footprint using MESSAGE," Energy Policy, Elsevier, vol. 62(C), pages 493-502.
    28. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Y.M. & Sab, Che Normee Binti Che, 2013. "Exploring the relationship between urbanization, energy consumption, and CO2 emission in MENA countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 107-112.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Groissböck, Markus & Pickl, Matthias J., 2018. "Fuel-price reform to achieve climate and energy policy goals in Saudi Arabia: A multiple-scenario analysis," Utilities Policy, Elsevier, vol. 50(C), pages 1-12.
    2. Manzoor, Davood & Aryanpur, Vahid, 2017. "Power sector development in Iran: A retrospective optimization approach," Energy, Elsevier, vol. 140(P1), pages 330-339.
    3. Megersa Tesfaye Boke & Semu Ayalew Moges & Zeleke Agide Dejen, 2022. "Optimizing renewable-based energy supply options for power generation in Ethiopia," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-15, January.
    4. Leibowicz, Benjamin D. & Lanham, Christopher M. & Brozynski, Max T. & Vázquez-Canteli, José R. & Castejón, Nicolás Castillo & Nagy, Zoltan, 2018. "Optimal decarbonization pathways for urban residential building energy services," Applied Energy, Elsevier, vol. 230(C), pages 1311-1325.
    5. English, J. & Niet, T. & Lyseng, B. & Palmer-Wilson, K. & Keller, V. & Moazzen, I. & Pitt, L. & Wild, P. & Rowe, A., 2017. "Impact of electrical intertie capacity on carbon policy effectiveness," Energy Policy, Elsevier, vol. 101(C), pages 571-581.
    6. Rady, Yassin Yehia & Rocco, Matteo V. & Serag-Eldin, M.A. & Colombo, Emanuela, 2018. "Modelling for power generation sector in Developing Countries: Case of Egypt," Energy, Elsevier, vol. 165(PB), pages 198-209.
    7. Wen, Xin & Jaxa-Rozen, Marc & Trutnevyte, Evelina, 2023. "Hindcasting to inform the development of bottom-up electricity system models: The cases of endogenous demand and technology learning," Applied Energy, Elsevier, vol. 340(C).
    8. Wen, Xin & Jaxa-Rozen, Marc & Trutnevyte, Evelina, 2022. "Accuracy indicators for evaluating retrospective performance of energy system models," Applied Energy, Elsevier, vol. 325(C).
    9. Jayadev, Gopika & Leibowicz, Benjamin D. & Kutanoglu, Erhan, 2020. "U.S. electricity infrastructure of the future: Generation and transmission pathways through 2050," Applied Energy, Elsevier, vol. 260(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Groissböck, Markus & Pickl, Matthias J., 2018. "Fuel-price reform to achieve climate and energy policy goals in Saudi Arabia: A multiple-scenario analysis," Utilities Policy, Elsevier, vol. 50(C), pages 1-12.
    2. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    3. Ringkjøb, Hans-Kristian & Haugan, Peter M. & Solbrekke, Ida Marie, 2018. "A review of modelling tools for energy and electricity systems with large shares of variable renewables," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 440-459.
    4. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    5. English, J. & Niet, T. & Lyseng, B. & Palmer-Wilson, K. & Keller, V. & Moazzen, I. & Pitt, L. & Wild, P. & Rowe, A., 2017. "Impact of electrical intertie capacity on carbon policy effectiveness," Energy Policy, Elsevier, vol. 101(C), pages 571-581.
    6. Sadeghi, Hadi & Rashidinejad, Masoud & Abdollahi, Amir, 2017. "A comprehensive sequential review study through the generation expansion planning," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1369-1394.
    7. Welsch, Manuel & Deane, Paul & Howells, Mark & Ó Gallachóir, Brian & Rogan, Fionn & Bazilian, Morgan & Rogner, Hans-Holger, 2014. "Incorporating flexibility requirements into long-term energy system models – A case study on high levels of renewable electricity penetration in Ireland," Applied Energy, Elsevier, vol. 135(C), pages 600-615.
    8. de Moura, Gustavo Nikolaus Pinto & Legey, Luiz Fernando Loureiro & Howells, Mark, 2018. "A Brazilian perspective of power systems integration using OSeMOSYS SAMBA – South America Model Base – and the bargaining power of neighbouring countries: A cooperative games approach," Energy Policy, Elsevier, vol. 115(C), pages 470-485.
    9. Koltsaklis, Nikolaos E. & Nazos, Konstantinos, 2017. "A stochastic MILP energy planning model incorporating power market dynamics," Applied Energy, Elsevier, vol. 205(C), pages 1364-1383.
    10. Jornada, Daniel & Leon, V. Jorge, 2016. "Robustness methodology to aid multiobjective decision making in the electricity generation capacity expansion problem to minimize cost and water withdrawal," Applied Energy, Elsevier, vol. 162(C), pages 1089-1108.
    11. Thushara, De Silva M. & Hornberger, George M. & Baroud, Hiba, 2019. "Decision analysis to support the choice of a future power generation pathway for Sri Lanka," Applied Energy, Elsevier, vol. 240(C), pages 680-697.
    12. Koltsaklis, Nikolaos E. & Georgiadis, Michael C., 2015. "A multi-period, multi-regional generation expansion planning model incorporating unit commitment constraints," Applied Energy, Elsevier, vol. 158(C), pages 310-331.
    13. DeCarolis, Joseph & Daly, Hannah & Dodds, Paul & Keppo, Ilkka & Li, Francis & McDowall, Will & Pye, Steve & Strachan, Neil & Trutnevyte, Evelina & Usher, Will & Winning, Matthew & Yeh, Sonia & Zeyring, 2017. "Formalizing best practice for energy system optimization modelling," Applied Energy, Elsevier, vol. 194(C), pages 184-198.
    14. Borasio, M. & Moret, S., 2022. "Deep decarbonisation of regional energy systems: A novel modelling approach and its application to the Italian energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    15. Csereklyei, Zsuzsanna & Qu, Songze & Ancev, Tihomir, 2019. "The effect of wind and solar power generation on wholesale electricity prices in Australia," Energy Policy, Elsevier, vol. 131(C), pages 358-369.
    16. Dai, Jiangyu & Wu, Shiqiang & Han, Guoyi & Weinberg, Josh & Xie, Xinghua & Wu, Xiufeng & Song, Xingqiang & Jia, Benyou & Xue, Wanyun & Yang, Qianqian, 2018. "Water-energy nexus: A review of methods and tools for macro-assessment," Applied Energy, Elsevier, vol. 210(C), pages 393-408.
    17. Iribarren, Diego & Martín-Gamboa, Mario & Navas-Anguita, Zaira & García-Gusano, Diego & Dufour, Javier, 2020. "Influence of climate change externalities on the sustainability-oriented prioritisation of prospective energy scenarios," Energy, Elsevier, vol. 196(C).
    18. Bartholdsen, Hans-Karl & Eidens, Anna & Löffler, Konstantin & Seehaus, Frederik & Wejda, Felix & Burandt, Thorsten & Oei, Pao-Yu & Kemfert, Claudia & Hirschhausen, Christian von, 2019. "Pathways for Germany's Low-Carbon Energy Transformation Towards 2050," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(15), pages 1-33.
    19. Bell, William Paul & Wild, Phillip & Foster, John & Hewson, Michael, 2017. "Revitalising the wind power induced merit order effect to reduce wholesale and retail electricity prices in Australia," Energy Economics, Elsevier, vol. 67(C), pages 224-241.
    20. Jayadev, Gopika & Leibowicz, Benjamin D. & Kutanoglu, Erhan, 2020. "U.S. electricity infrastructure of the future: Generation and transmission pathways through 2050," Applied Energy, Elsevier, vol. 260(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:165:y:2016:i:c:p:548-558. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.