Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach
We propose a system level approach to value the impact on costs of the integration of intermittent renewable generation in a power system, based on expected breakeven cost and breakeven cost risk. To do this, we carefully reconsider the definition of Levelized Cost of Electricity (LCOE) when extende...
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-03-01
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| Series: | Energies |
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| Online Access: | http://www.mdpi.com/1996-1073/11/3/549 |
| _version_ | 1797999380695875584 |
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| author | Carlo Lucheroni Carlo Mari |
| author_facet | Carlo Lucheroni Carlo Mari |
| author_sort | Carlo Lucheroni |
| collection | DOAJ |
| description | We propose a system level approach to value the impact on costs of the integration of intermittent renewable generation in a power system, based on expected breakeven cost and breakeven cost risk. To do this, we carefully reconsider the definition of Levelized Cost of Electricity (LCOE) when extended to non-dispatchable generation, by examining extra costs and gains originated by the costly management of random power injections. We are thus lead to define a ‘system LCOE’ as a system dependent LCOE that takes properly into account intermittent generation. In order to include breakeven cost risk we further extend this deterministic approach to a stochastic setting, by introducing a ‘stochastic system LCOE’. This extension allows us to discuss the optimal integration of intermittent renewables from a broad, system level point of view. This paper thus aims to provide power producers and policy makers with a new methodological scheme, still based on the LCOE but which updates this valuation technique to current energy system configurations characterized by a large share of non-dispatchable production. Quantifying and optimizing the impact of intermittent renewables integration on power system costs, risk and CO
2
emissions, the proposed methodology can be used as powerful tool of analysis for assessing environmental and energy policies. |
| first_indexed | 2024-04-11T11:03:50Z |
| format | Article |
| id | doaj.art-276bb901f2674284857308ddf6fe79ff |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-11T11:03:50Z |
| publishDate | 2018-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-276bb901f2674284857308ddf6fe79ff2022-12-22T04:28:26ZengMDPI AGEnergies1996-10732018-03-0111354910.3390/en11030549en11030549Optimal Integration of Intermittent Renewables: A System LCOE Stochastic ApproachCarlo Lucheroni0Carlo Mari1School of Science and Technologies, University of Camerino, via M. delle Carceri 9, 62032 Camerino (MC), ItalyDepartment of Economics, University of Chieti-Pescara, viale Pindaro 42, 65127 Pescara (PE), ItalyWe propose a system level approach to value the impact on costs of the integration of intermittent renewable generation in a power system, based on expected breakeven cost and breakeven cost risk. To do this, we carefully reconsider the definition of Levelized Cost of Electricity (LCOE) when extended to non-dispatchable generation, by examining extra costs and gains originated by the costly management of random power injections. We are thus lead to define a ‘system LCOE’ as a system dependent LCOE that takes properly into account intermittent generation. In order to include breakeven cost risk we further extend this deterministic approach to a stochastic setting, by introducing a ‘stochastic system LCOE’. This extension allows us to discuss the optimal integration of intermittent renewables from a broad, system level point of view. This paper thus aims to provide power producers and policy makers with a new methodological scheme, still based on the LCOE but which updates this valuation technique to current energy system configurations characterized by a large share of non-dispatchable production. Quantifying and optimizing the impact of intermittent renewables integration on power system costs, risk and CO 2 emissions, the proposed methodology can be used as powerful tool of analysis for assessing environmental and energy policies.http://www.mdpi.com/1996-1073/11/3/549intermittent source integrationpower systemcost risklevelized cost of electricitygeneration portfolio frontier |
| spellingShingle | Carlo Lucheroni Carlo Mari Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach Energies intermittent source integration power system cost risk levelized cost of electricity generation portfolio frontier |
| title | Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach |
| title_full | Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach |
| title_fullStr | Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach |
| title_full_unstemmed | Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach |
| title_short | Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach |
| title_sort | optimal integration of intermittent renewables a system lcoe stochastic approach |
| topic | intermittent source integration power system cost risk levelized cost of electricity generation portfolio frontier |
| url | http://www.mdpi.com/1996-1073/11/3/549 |
| work_keys_str_mv | AT carlolucheroni optimalintegrationofintermittentrenewablesasystemlcoestochasticapproach AT carlomari optimalintegrationofintermittentrenewablesasystemlcoestochasticapproach |