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A Three-Part Electricity Price Mechanism for Photovoltaic-Battery Energy Storage Power Plants Considering the Power Quality and Ancillary Service

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  • Yajing Gao

    (School of Electrical and Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • Fushen Xue

    (School of Electrical and Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • Wenhai Yang

    (School of Electrical and Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • Yanping Sun

    (School of Electrical and Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • Yongjian Sun

    (School of Electrical and Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • Haifeng Liang

    (School of Electrical and Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • Peng Li

    (School of Electrical and Electronic Engineering, North China Electric Power University, Baoding 071003, China)

Abstract

To solve the problem of solar abandoning, which is accompanied by the rapid development of photovoltaic (PV) power generation, a demonstration of a photovoltaic-battery energy storage system (PV-BESS) power plant has been constructed in Qinghai province in China. However, it is difficult for the PV-BESS power plant to survive and develop with the current electricity price mechanism and subsidy policy. In this paper, a three-part electricity price mechanism is proposed based on a deep analysis of the construction and operation costs and economic income. The on-grid electricity price is divided into three parts: the capacity price, graded electricity price, and ancillary service price. First, to ensure that the investment of the PV-BESS power plant would achieve the industry benchmark income, the capacity price and benchmark electricity price are calculated using the discounted cash flow method. Then, the graded electricity price is calculated according to the grade of the quality of grid-connected power. Finally, the ancillary service price is calculated based on the graded electricity price and ancillary service compensation. The case studies verify the validity of the three-part electricity price mechanism. The verification shows that the three-part electricity price mechanism can help PV-BESS power plants to obtain good economic returns, which can promote the development of PV-BESS power plants.

Suggested Citation

  • Yajing Gao & Fushen Xue & Wenhai Yang & Yanping Sun & Yongjian Sun & Haifeng Liang & Peng Li, 2017. "A Three-Part Electricity Price Mechanism for Photovoltaic-Battery Energy Storage Power Plants Considering the Power Quality and Ancillary Service," Energies, MDPI, vol. 10(9), pages 1-21, August.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:9:p:1257-:d:109599
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    Cited by:

    1. Tsao, Yu-Chung & Ai, Ho Thi Thu & Lu, Jye-Chyi & Wang, Chao, 2024. "Game theory-based electricity pricing decisions incorporating prosumer energy preferences and renewable portfolio standard," Energy, Elsevier, vol. 306(C).
    2. Tsao, Yu-Chung & Thanh, Vo-Van & Lu, Jye-Chyi, 2022. "Efficiency of resilient three-part tariff pricing schemes in residential power markets," Energy, Elsevier, vol. 239(PD).

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