IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v227y2018icp384-392.html
   My bibliography  Save this article

Market equilibrium analysis with high penetration of renewables and gas-fired generation: An empirical case of the Beijing-Tianjin-Tangshan power system

Author

Listed:
  • Guo, Hongye
  • Chen, Qixin
  • Xia, Qing
  • Kang, Chongqing

Abstract

Facing stricter energy policies, the power mix in China is experiencing significant changes. First, the proportion of renewables, which have intermittent and stochastic generation, is assumed to be rapidly increasing. Thus, there is an increasing requirement to install more flexible generation capacity in the power system. According to the Chinese government’s energy planning, in the near future, the proportion of gas-fired units will be greatly promoted to add flexibility to the power system. The impacts incurred by developing a high proportion of both renewables and gas-fired generation on the power market should be formulated and analyzed. In this study, a modified Nash-Cournot equilibrium model is proposed, considering renewable curtailment situations during valley times. Then, a large-scale and multi-period unit commitment model that considers the combined heat and power characteristics is presented to simulate market behaviors. On this basis, an empirical analysis of the Beijing-Tianjin-Tangshan power system equilibrium is illustrated as numerical examples, presenting the influences of the changing power mix on electricity prices, renewable energy integration, carbon emissions and air pollutant emissions. Finally, some suggestions on future electrical and environmental policies are presented.

Suggested Citation

  • Guo, Hongye & Chen, Qixin & Xia, Qing & Kang, Chongqing, 2018. "Market equilibrium analysis with high penetration of renewables and gas-fired generation: An empirical case of the Beijing-Tianjin-Tangshan power system," Applied Energy, Elsevier, vol. 227(C), pages 384-392.
  • Handle: RePEc:eee:appene:v:227:y:2018:i:c:p:384-392
    DOI: 10.1016/j.apenergy.2017.11.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261917315921
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2017.11.012?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. Steven A. Gabriel & Antonio J. Conejo & J. David Fuller & Benjamin F. Hobbs & Carlos Ruiz, 2013. "Complementarity Modeling in Energy Markets," International Series in Operations Research and Management Science, Springer, edition 127, number 978-1-4419-6123-5, January.
    2. Zhao, Xiaoli & Cai, Qiong & Ma, Chunbo & Hu, Yanan & Luo, Kaiyan & Li, William, 2017. "Economic evaluation of environmental externalities in China’s coal-fired power generation," Energy Policy, Elsevier, vol. 102(C), pages 307-317.
    3. Dai, Hancheng & Fujimori, Shinichiro & Silva Herran, Diego & Shiraki, Hiroto & Masui, Toshihiko & Matsuoka, Yuzuru, 2017. "The impacts on climate mitigation costs of considering curtailment and storage of variable renewable energy in a general equilibrium model," Energy Economics, Elsevier, vol. 64(C), pages 627-637.
    4. Zou, Peng & Chen, Qixin & Yu, Yang & Xia, Qing & Kang, Chongqing, 2017. "Electricity markets evolution with the changing generation mix: An empirical analysis based on China 2050 High Renewable Energy Penetration Roadmap," Applied Energy, Elsevier, vol. 185(P1), pages 56-67.
    5. Ventosa, Mariano & Baillo, Alvaro & Ramos, Andres & Rivier, Michel, 2005. "Electricity market modeling trends," Energy Policy, Elsevier, vol. 33(7), pages 897-913, May.
    6. Tian, Ruijie & Zhang, Qi & Wang, Ge & Li, Hailong & Chen, Siyuan & Li, Yan & Tian, Yulu, 2017. "Study on the promotion of natural gas-fired electricity with energy market reform in China using a dynamic game-theoretic model," Applied Energy, Elsevier, vol. 185(P2), pages 1832-1839.
    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. Li, Xiao & Liu, Pan & Wang, Yibo & Yang, Zhikai & Gong, Yu & An, Rihui & Huang, Kangdi & Wen, Yan, 2022. "Derivation of operating rule curves for cascade hydropower reservoirs considering the spot market: A case study of the China's Qing River cascade-reservoir system," Renewable Energy, Elsevier, vol. 182(C), pages 1028-1038.
    2. Fan, Jing-Li & Wang, Jia-Xing & Hu, Jia-Wei & Wang, Yu & Zhang, Xian, 2019. "Optimization of China’s provincial renewable energy installation plan for the 13th five-year plan based on renewable portfolio standards," Applied Energy, Elsevier, vol. 254(C).
    3. Xu, Shitian & Liu, Pan & Li, Xiao & Cheng, Qian & Liu, Zheyuan, 2023. "Deriving long-term operating rules of the hydro-wind-PV hybrid energy system considering electricity price," Renewable Energy, Elsevier, vol. 219(P1).
    4. Gong, Yu & Liu, Pan & Ming, Bo & Xu, Weifeng & Huang, Kangdi & Li, Xiao, 2021. "Deriving pack rules for hydro–photovoltaic hybrid power systems considering diminishing marginal benefit of energy," Applied Energy, Elsevier, vol. 304(C).
    5. Li, Xiao & Liu, Pan & Feng, Maoyuan & Jordaan, Sarah M. & Cheng, Lei & Ming, Bo & Chen, Jie & Xie, Kang & Liu, Weibo, 2024. "Energy transition paradox: Solar and wind growth can hinder decarbonization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(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. de Frutos Cachorro, Julia & Willeghems, Gwen & Buysse, Jeroen, 2020. "Exploring investment potential in a context of nuclear phase-out uncertainty: Perfect vs. imperfect electricity markets," Energy Policy, Elsevier, vol. 144(C).
    2. Abate, Arega Getaneh & Riccardi, Rossana & Ruiz, Carlos, 2022. "Contract design in electricity markets with high penetration of renewables: A two-stage approach," Omega, Elsevier, vol. 111(C).
    3. Pedro A. Neto & Terry L. Friesz & Ke Han, 2016. "Electric Power Network Oligopoly as a Dynamic Stackelberg Game," Networks and Spatial Economics, Springer, vol. 16(4), pages 1211-1241, December.
    4. Susanne Koschker & Dominik Möst, 2016. "Perfect competition vs. strategic behaviour models to derive electricity prices and the influence of renewables on market power," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(3), pages 661-686, July.
    5. Spiridonova, Olga, 2016. "Transmission capacities and competition in Western European electricity market," Energy Policy, Elsevier, vol. 96(C), pages 260-273.
    6. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    7. Awad, Ahmed S.A. & Ahmed, Mohamed Hassan & El-Fouly, Tarek H.M. & Salama, Magdy M.A., 2017. "The impact of wind farm location and control strategy on wind generation penetration and market prices," Renewable Energy, Elsevier, vol. 106(C), pages 354-364.
    8. Megy, Camille & Massol, Olivier, 2023. "Is Power-to-Gas always beneficial? The implications of ownership structure," Energy Economics, Elsevier, vol. 128(C).
    9. Shahmohammadi, Ali & Sioshansi, Ramteen & Conejo, Antonio J. & Afsharnia, Saeed, 2018. "Market equilibria and interactions between strategic generation, wind, and storage," Applied Energy, Elsevier, vol. 220(C), pages 876-892.
    10. Christos N. Dimitriadis & Evangelos G. Tsimopoulos & Michael C. Georgiadis, 2021. "A Review on the Complementarity Modelling in Competitive Electricity Markets," Energies, MDPI, vol. 14(21), pages 1-27, November.
    11. Neuhoff, Karsten & Barquin, Julian & Boots, Maroeska G. & Ehrenmann, Andreas & Hobbs, Benjamin F. & Rijkers, Fieke A.M. & Vazquez, Miguel, 2005. "Network-constrained Cournot models of liberalized electricity markets: the devil is in the details," Energy Economics, Elsevier, vol. 27(3), pages 495-525, May.
    12. Rafal Weron & Adam Misiorek, 2006. "Short-term electricity price forecasting with time series models: A review and evaluation," HSC Research Reports HSC/06/01, Hugo Steinhaus Center, Wroclaw University of Science and Technology.
    13. repec:diw:diwwpp:dp1566 is not listed on IDEAS
    14. Egging-Bratseth, Ruud & Holz, Franziska & Czempinski, Victoria, 2021. "Freedom gas to Europe: Scenarios analyzed using the Global Gas Model," Research in International Business and Finance, Elsevier, vol. 58(C).
    15. Takashima, Ryuta & Goto, Makoto & Kimura, Hiroshi & Madarame, Haruki, 2008. "Entry into the electricity market: Uncertainty, competition, and mothballing options," Energy Economics, Elsevier, vol. 30(4), pages 1809-1830, July.
    16. Nouicer, Athir & Meeus, Leonardo & Delarue, Erik, 2023. "Demand-side flexibility in distribution grids: Voluntary versus mandatory contracting," Energy Policy, Elsevier, vol. 173(C).
    17. Matar, Walid & Murphy, Frederic & Pierru, Axel & Rioux, Bertrand, 2015. "Lowering Saudi Arabia's fuel consumption and energy system costs without increasing end consumer prices," Energy Economics, Elsevier, vol. 49(C), pages 558-569.
    18. Misiorek Adam & Trueck Stefan & Weron Rafal, 2006. "Point and Interval Forecasting of Spot Electricity Prices: Linear vs. Non-Linear Time Series Models," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 10(3), pages 1-36, September.
    19. Bonenti, Francesca & Oggioni, Giorgia & Allevi, Elisabetta & Marangoni, Giacomo, 2013. "Evaluating the EU ETS impacts on profits, investments and prices of the Italian electricity market," Energy Policy, Elsevier, vol. 59(C), pages 242-256.
    20. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo & Möst, Dominik, 2007. "Agent-based simulation of electricity markets: a literature review," Working Papers "Sustainability and Innovation" S5/2007, Fraunhofer Institute for Systems and Innovation Research (ISI).
    21. Möst, Dominik & Keles, Dogan, 2010. "A survey of stochastic modelling approaches for liberalised electricity markets," European Journal of Operational Research, Elsevier, vol. 207(2), pages 543-556, December.

    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:227:y:2018:i:c:p:384-392. 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.