As China intensifies its commitment to carbon reduction, the role of thermal power units is undergoing a significant transformation. A recent study led by Ye Xu from the State Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources at North China Electric Power University sheds light on this critical shift. The research, published in IET Renewable Power Generation, proposes a new capacity compensation mechanism aimed at ensuring the economic viability of thermal power units in a rapidly evolving energy landscape.
The essence of the study lies in addressing a pressing issue: the current electricity market does not adequately reflect the capacity value of thermal power units. This discrepancy poses a risk of financial losses for these units as they pivot from being primary power sources to regulators that support the grid’s stability. Xu emphasizes the need for a balanced approach, stating, “Establishing a rational capacity compensation mechanism is crucial for safeguarding the revenue of thermal power units while providing clear investment signals.”
To tackle this challenge, the research introduces a two-layer power source planning model. The upper layer focuses on optimizing the installed capacity and capacity price of various power sources, aiming to minimize operational costs while adhering to constraints like annual net profit. The lower layer zeroes in on the operational dynamics of typical days, optimizing the output of different types of units. This dual approach not only enhances the economic efficiency of the energy system but also ensures that each unit’s revenue is protected.
The implications of this research are profound. By creating a framework that accurately values the capacity of thermal power units, energy producers can make more informed investment decisions, ultimately leading to a more resilient and economically viable energy landscape. Xu’s model could serve as a blueprint for other countries grappling with similar transitions in their energy sectors, particularly those aiming to integrate renewable energy sources while maintaining reliability.
As the energy market continues to evolve, the insights from this study may pave the way for more coordinated planning among thermal, wind, and photovoltaic power sources. The emphasis on economic efficiency and reliable revenue streams could attract further investment in energy infrastructure, driving innovation and sustainability in the sector.
For those interested in exploring this groundbreaking research further, the study can be found in IET Renewable Power Generation. More information about Ye Xu and his work can be accessed through his affiliation at North China Electric Power University: lead_author_affiliation.