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VII.c Storage, demand shifting, interconnection Costs

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Showing just the changes made in the edit by Joseph Downie at 2011-11-30 13:31:50 UTC

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2012-05-03

2011-11-30

2011-04-27

Title: 2050 Storage, demand shifting, backup costs

Content: h1 Michael Clark changes (currently in the spreadsheet)

h1 To do/issues

* No costs for demand shifting
* No cost range for interconnector
* Does the gas standby correctly cause a charge for the gas it consumes?

h1 Data

Markal06 Power sector spreadsheet

Hydro pumped storage is low cost and micro (<1.25MW) is high cost

Interconnector is assumed to be the dummy variable for electricity imports

Back up CCGT is referenced directly from: 2050 Conventional thermal plant costs

h1 Tom Counsell methodology

There are four elements that need to be costed:

# Gas standby generation - done
# Pumped storage - done
#  Interconnection - tbd
# Electric vehicle demand shifting - tbd

h1 Gas standby generation

Initial set of costs taken from range on page 77 of MottMac10. These exclude interest during construction (IDC). Need to figure out what to do about that.

Note that these costs are for a CCGT. It is possible that cheaper, but less efficient, OGTs would be used. Need to figure out a cost for those.

h2 Size

No particular evidence for 1GW typical size. MottMac10 use 830 MW.

h2 Life

MottMac10 suggests a 20 to 30 year operating life. Because of the very low utilisation if it is as a dedicated standby plant, we assume that any built 2010 to 2050 will last beyond 2050 (e.g., up to 40 year life).

h2 Operating costs

The MottMac10 has a variable and a fixed operating cost. Assuming that all this is actually fixed operating cost.

h2 Low costs

MottMac10 nth of a kind costs low.

h2 High costs

MottMac10 first of a kind costs high. 

h1 Pumped storage

Initial set of costs taken from Annex EH-III v3 of Markal3.24Doc.This provides a single estimate, so currently added a +/- 50% to get a fuller range. Underlying data source is said to be the US EPA.

Unclear whether cost of energy to store is factored into this. 2050 Pathway balances over a year, so I think we can assume no energy cost.

h2 Comparators

Dinorwig cost £420m (1983) to build and £5m (1983) to run[http://books.google.co.uk/books?id=z0Z3DxacC9IC&pg=PA457&lpg=PA457&dq=dinorwig+£425+million&source=bl&ots=O2Ixg4eXU8&sig=GT91GlMM9GLN4nISC3NL18Suuxo&hl=en&ei=9aJdTZq1KIqv8QOIpPWwCw&sa=X&oi=book_result&ct=result&resnum=5&ved=0CDcQ6AEwBA#v=onepage&q=dinorwig%20£425%20million&f=false]

h2 Size

Using 1.8 GW, based on the size of Dinorwig.

h2 Life

Assume these last beyond 2050. Markal3.24Doc suggests life of 50 years.

h2 Operating costs

For the variable component of the operating cost: arbitrarily assume that the pumped storage completely discharges once a week (52 times a year).

h2 Low costs

50% below Markal cost.

h2 High costs

50% above Markal cost.

Category: 2050 pathway costs



User: Tom Counsell

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Title: VII.c Storage, demand shifting, interconnection Costs

Content: h1 Technologies costed in this sector

* Interconnector - Please click on: INTERCONNECTION COST DATA
* Pumped Storage - Please click on: PUMPED STORAGE - HYDRO COST DATA
* Battery storage - BATTERY STORAGE COST DATA
* Compressed air storage - COMPRESSED AIR STORAGE COST DATA

Excluded are costs of shifting demand for electric cars. Note hydrogen storage is also not considered here because this was not used to derive our technical assumptions on storage capacity.

h1 Costs Methodology

h2 Methodology used

This section of the Calculator is slightly different from the other sectors in that it calculates the consequences on electricity grid balancing of all the other low carbon choices made in the Calculator. The methodology used is to model a stress test and then calculate the CCGT back up generation required once the options chosen by the user of interconnector, pumped hydro storage, battery/compressed air storage and demand shifting from electric cars are exhausted. The stress test chosen is a 5 day cold snap where intermittent renewables output is only a fraction of average output and heating demand increases significantly. For full technical assumptions please see our latest analytical report.[ Page 67, 2.A.C Electricity Balancing http://www.decc.gov.uk/assets/decc/Consultations/2050/1344-2050-pathways-analysis-response-pt2.pdf]

The cost calculated in this section is therefore the cost of back up, storage and interconnection of the electricity grid to ensure supply and demand is balanced during peak demand and reduced supply. 

Please see 2050 Methodology for a full description of the costs approach in the Calculator.

h2 Methodology issues and questions to stakeholders

* We have assumed demand shifting from electric cars would be largely a potential welfare loss, either achieved through pricing incentives or regulation but would not be a resource cost. Are there any resource costs associated with demand shifting?

* Are there any other demand side responses from the technologies assumed in the Calculator that could reduce demand? Do they have a resource cost?

h1 Technical Assumptions

h2 Gas standby generation

Life - MottMac10 suggests a 20 to 30 year operating life. Because of the very low utilisation if it is as a dedicated standby plant, we assume that any built 2010 to 2050 will last beyond 2050 (e.g., up to 40 year life).

h2 Pumped Storage

Size - 1.8 GW [Based on the size of Dinorwig] Life - Assume these last beyond 2050 [Markal3.24Doc suggests life of 50 years] Operation - For the variable component of the operating cost: arbitrarily assume that the pumped storage completely discharges once a week (52 times a year).

Category: Sector by sector cost assumptions

h1 General Comments

Please use this space to make any general comments. Please add your name when commenting.



User: Joseph Downie

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