Economic evaluation of flexible transformation in coal-fired power plants with multi price links. (20th May 2023)

• Record Type: Journal Article
• Authors: Pang, Yuexia; Chi, Yuanying; Tian, Bingying
• Is Part Of: Journal of cleaner production. Volume 402(2023)
• Publication Date: 2023-05-20
• Subjects: Flexible transformation -- Carbon price -- Feed-in tariff -- Peak shaving -- Economic evaluation; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2023.136851
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: The effects of links among the carbon price, feed-in tariff (FIT), and peak shaving price on flexible transformation in coal-fired power plants are not well understood. To address this gap in knowledge, we first designed multi price links to advance coal-fired power plant flexible transformation. Second, the effects of multi price links on coal-fired power plant operation were analyzed. Third, an economic evaluation model for coal-fired power plant flexible transformation was constructed based on fuzzy real option considering multi price links. Finally, strategies for encouraging coal-fired power plant flexible transformation were proposed. The results showed that (1) matching of the peak shaving models and peak shaving depth was a key factor influencing profits during coal-fired power plant flexible transformation. (2) The effects that multi price links had on the market value of coal-fired power plants mainly resulted from the transferring rate of the carbon price to the FIT and elastic electricity demand. (3) The positive effects associated with multi price links on the market value of coal-fired power plants can gradually be realized by increasing the peak shaving depth. This study not only provides a quantitative coal-fired power plant flexible transformation investment decision model for investors, but it would be also beneficial for promoting low-carbon policies. Graphical abstract: Image 1 Highlights: The multi prices links are designed to improve electricity system flexibility. Market feed-in tariff uncertainty is described by fuzzy function. Economic model of coal-fired power plants flexible transformation is constructed. Effects of multi prices links on coal-fired plant operation are studied. Suggestions of encouraging coal-fired plant flexible transformation are proposed.