Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power
Abstract
:1. Introduction
2. Principles and Method
2.1. Background for Employing EBs in CHP Plants
2.2. Game Analysis Model
2.2.1. Three-Sided Game Analysis for EB Investment
2.2.2. Utilization Analysis
2.2.3. Game Analysis for the Unit Cost of CHP Plants
2.3. Approach and Tricks for Solving the Model
3. Case Study
3.1. Data Sources and Background
3.2. Effect of EBs on Wind Power Accommodation
3.3. Game Results
4. Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
Nomenclature
BTH | Beijing–Tianjin–Hebei |
CHP | Combined heat and power |
EBs | Electric boilers |
Player C | CHP plants |
Player G | Government |
Player W | Wind farms |
Symbols
Unit cost of the EB investment | |
Unit cost of Player C’s electricity power production | |
Unit cost of CHP units | |
Marginal unit cost of CHP units | |
Unit cost | |
Marginal unit cost | |
Average unit cost | |
Unit environmental emissions cost of the power sector | |
Electric power generated by CHP units before employing EBs | |
H | Heat generated by CHP units before employing EBs |
kW | Kilowatt |
MW | Megawatt |
Unit profit of Player W gained from this project | |
Unit cost of supplying electricity for Player C | |
Capacity of EBs to be invested | |
Wind power curtailment at time of t | |
Q | Quantity of wind power accommodation after employing EBs |
RW | Profit concession from Player W to Player C |
SG | Subsidy from Player G to Player C |
SW | Subsidy from Player W to Player C |
Time of t | |
UC | Utilization of Player C |
UG | Utilization of Player G |
UW | Utilization of Player W |
Dummy variable that indicates whether this project can complete prevent wind power curtailment | |
Duration of each time segment |
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Parameter | Meaning | Value | Units |
---|---|---|---|
Environmental emissions cost of the power sector | 0.0109 | ||
Annual value of EB investment cost per unit | 7253.63 | ||
Unit profit of wind power | 0.0740 | ||
Unit price of power supplied by the CHP plant | 0.0725 | ||
Average unit cost of CHP units | 0.0551 | ||
Marginal unit cost of CHP units | 0.0174 |
Item | Government | Wind Farms | CHP Plants |
---|---|---|---|
Subsidies (/MW) | 1305.65 | 5802.90 | −7108.56 |
Profit concession (/kWh) | - | 0.0599 | −0.0205 |
Investment (MW) | - | - | 1110 |
Benefits () | 4.95 × 106 | 1.93 × 106 | 4.58 × 104 |
Return on investment (%) | 341.34 | 29.93 | 28.50 |
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Liu, D.; Wang, S.-K.; Liu, J.-C.; Huang, H.; Zhang, X.-P.; Feng, Y.; Wang, W.-J. Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power. Sustainability 2017, 9, 874. https://doi.org/10.3390/su9060874
Liu D, Wang S-K, Liu J-C, Huang H, Zhang X-P, Feng Y, Wang W-J. Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power. Sustainability. 2017; 9(6):874. https://doi.org/10.3390/su9060874
Chicago/Turabian StyleLiu, Da, Shou-Kai Wang, Jin-Chen Liu, Han Huang, Xing-Ping Zhang, Yi Feng, and Wei-Jun Wang. 2017. "Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power" Sustainability 9, no. 6: 874. https://doi.org/10.3390/su9060874