IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v75y2014icp411-418.html
   My bibliography  Save this article

Life cycle cost analysis of wind power considering stochastic uncertainties

Author

Listed:
  • Li, Chiao-Ting
  • Peng, Huei
  • Sun, Jing

Abstract

This paper presents a long-term cost analysis of wind power and compares its competitiveness to non-renewable generating technologies. The analysis considers several important attributes related to wind intermittency that are sometimes ignored in traditional generation planning or LCOE (levelized cost of energy) studies, including the need for more nameplate capacity due to intermittency, hourly fluctuations in wind outputs and cost for reserves. The competitiveness of wind power is assessed by evaluating four scenarios: 1) adding natural gas generating capacity to the power grid; 2) adding coal generating capacity to the power grid; 3) adding wind capacity to the power grid; and, 4) adding wind capacity and energy storage to the power grid where an energy storage device is used to cover wind intermittency. A case study in the state of Michigan is presented to demonstrate the use of the proposed methodology, in which a time horizon from 2010 to 2040 is considered. The results show that wind energy will still be more expensive than natural gas power plants in the next three decades, but will be cheaper than coal capacities if wind intermittency is mitigated. Furthermore, if the costs of carbon emissions and environmental externalities are considered, wind generation will be a competitive option for grid capacity expansion.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:energy:v:75:y:2014:i:c:p:411-418
    DOI: 10.1016/j.energy.2014.07.090
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544214009293
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2014.07.090?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. Lund, Henrik, 2005. "Large-scale integration of wind power into different energy systems," Energy, Elsevier, vol. 30(13), pages 2402-2412.
    2. Lund, H. & Mathiesen, B.V., 2009. "Energy system analysis of 100% renewable energy systems—The case of Denmark in years 2030 and 2050," Energy, Elsevier, vol. 34(5), pages 524-531.
    3. Shimon Awerbuch, 2006. "Portfolio-Based Electricity Generation Planning: Policy Implications For Renewables And Energy Security," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 11(3), pages 693-710, May.
    4. Roth, Ian F. & Ambs, Lawrence L., 2004. "Incorporating externalities into a full cost approach to electric power generation life-cycle costing," Energy, Elsevier, vol. 29(12), pages 2125-2144.
    5. Lund, H., 2006. "Large-scale integration of optimal combinations of PV, wind and wave power into the electricity supply," Renewable Energy, Elsevier, vol. 31(4), pages 503-515.
    6. Branker, K. & Pathak, M.J.M. & Pearce, J.M., 2011. "A review of solar photovoltaic levelized cost of electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4470-4482.
    7. Li, Chiao-Ting & Peng, Huei & Sun, Jing, 2013. "Reducing CO2 emissions on the electric grid through a carbon disincentive policy," Energy Policy, Elsevier, vol. 60(C), pages 793-802.
    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. Wang, Yongli & Gao, Mingchen & Wang, Jingyan & Wang, Shuo & Liu, Yang & Zhu, Jinrong & Tan, Zhongfu, 2021. "Measurement and key influencing factors of the economic benefits for China’s photovoltaic power generation: A LCOE-based hybrid model," Renewable Energy, Elsevier, vol. 169(C), pages 935-952.
    2. Xueliang Yuan & Leping Chen & Xuerou Sheng & Mengyue Liu & Yue Xu & Yuzhou Tang & Qingsong Wang & Qiao Ma & Jian Zuo, 2021. "Life Cycle Cost of Electricity Production: A Comparative Study of Coal-Fired, Biomass, and Wind Power in China," Energies, MDPI, vol. 14(12), pages 1-15, June.
    3. Cortés-Borda, D. & Guillén-Gosálbez, G. & Jiménez, L., 2015. "Assessment of nuclear energy embodied in international trade following a world multi-regional input–output approach," Energy, Elsevier, vol. 91(C), pages 91-101.
    4. Nomaguchi, Yutaka & Tanaka, Hiroki & Sakakibara, Akiyuki & Fujita, Kikuo & Kishita, Yusuke & Hara, Keishiro & Uwasu, Michinori, 2017. "Integrated planning of low-voltage power grids and subsidies toward a distributed generation system – Case study of the diffusion of photovoltaics in a Japanese dormitory town," Energy, Elsevier, vol. 140(P1), pages 779-793.
    5. 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.

    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. 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).
    2. Krajacic, Goran & Duic, Neven & Carvalho, Maria da Graça, 2011. "How to achieve a 100% RES electricity supply for Portugal?," Applied Energy, Elsevier, vol. 88(2), pages 508-517, February.
    3. Ma, Tao & Østergaard, Poul Alberg & Lund, Henrik & Yang, Hongxing & Lu, Lin, 2014. "An energy system model for Hong Kong in 2020," Energy, Elsevier, vol. 68(C), pages 301-310.
    4. Lund, Henrik & Mathiesen, Brian Vad, 2012. "The role of Carbon Capture and Storage in a future sustainable energy system," Energy, Elsevier, vol. 44(1), pages 469-476.
    5. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2011. "The first step towards a 100% renewable energy-system for Ireland," Applied Energy, Elsevier, vol. 88(2), pages 502-507, February.
    6. Yoro, Kelvin O. & Daramola, Michael O. & Sekoai, Patrick T. & Wilson, Uwemedimo N. & Eterigho-Ikelegbe, Orevaoghene, 2021. "Update on current approaches, challenges, and prospects of modeling and simulation in renewable and sustainable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    7. Liu, Wen & Lund, Henrik & Mathiesen, Brian Vad, 2011. "Large-scale integration of wind power into the existing Chinese energy system," Energy, Elsevier, vol. 36(8), pages 4753-4760.
    8. Henning, Hans-Martin & Palzer, Andreas, 2014. "A comprehensive model for the German electricity and heat sector in a future energy system with a dominant contribution from renewable energy technologies—Part I: Methodology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 1003-1018.
    9. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2010. "A review of computer tools for analysing the integration of renewable energy into various energy systems," Applied Energy, Elsevier, vol. 87(4), pages 1059-1082, April.
    10. Dominković, D.F. & Weinand, J.M. & Scheller, F. & D'Andrea, M. & McKenna, R., 2022. "Reviewing two decades of energy system analysis with bibliometrics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    11. Gota, Dan-Ioan & Lund, Henrik & Miclea, Liviu, 2011. "A Romanian energy system model and a nuclear reduction strategy," Energy, Elsevier, vol. 36(11), pages 6413-6419.
    12. Hong, Lixuan & Lund, Henrik & Mathiesen, Brian Vad & Möller, Bernd, 2013. "2050 pathway to an active renewable energy scenario for Jiangsu province," Energy Policy, Elsevier, vol. 53(C), pages 267-278.
    13. Pérez Odeh, Rodrigo & Watts, David & Flores, Yarela, 2018. "Planning in a changing environment: Applications of portfolio optimisation to deal with risk in the electricity sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3808-3823.
    14. Rusu, Eugen & Onea, Florin, 2013. "Evaluation of the wind and wave energy along the Caspian Sea," Energy, Elsevier, vol. 50(C), pages 1-14.
    15. Ćosić, Boris & Krajačić, Goran & Duić, Neven, 2012. "A 100% renewable energy system in the year 2050: The case of Macedonia," Energy, Elsevier, vol. 48(1), pages 80-87.
    16. Quiggin, Daniel & Buswell, Richard, 2016. "The implications of heat electrification on national electrical supply-demand balance under published 2050 energy scenarios," Energy, Elsevier, vol. 98(C), pages 253-270.
    17. Hong, Lixuan & Zhou, Nan & Fridley, David & Raczkowski, Chris, 2013. "Assessment of China's renewable energy contribution during the 12th Five Year Plan," Energy Policy, Elsevier, vol. 62(C), pages 1533-1543.
    18. Hong, Lixuan & Lund, Henrik & Möller, Bernd, 2012. "The importance of flexible power plant operation for Jiangsu's wind integration," Energy, Elsevier, vol. 41(1), pages 499-507.
    19. Ma, Weiwu & Xue, Xinpei & Liu, Gang, 2018. "Techno-economic evaluation for hybrid renewable energy system: Application and merits," Energy, Elsevier, vol. 159(C), pages 385-409.
    20. Zakeri, Behnam & Syri, Sanna & Rinne, Samuli, 2015. "Higher renewable energy integration into the existing energy system of Finland – Is there any maximum limit?," Energy, Elsevier, vol. 92(P3), pages 244-259.

    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:energy:v:75:y:2014:i:c:p:411-418. 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.journals.elsevier.com/energy .

    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.