Kraftvärme - En förbisedd grundpelare i morgondagens förnybara elsystem
(2021) In LUTMDN/TMHP-21/5475-SE MVKM01 20211Department of Energy Sciences
- Abstract (Swedish)
- The Swedish power system, similar to those of other European countries, is currently transitioning from fossil to renewable. Simultaneously the electrification and digitalization of societies all over the world sets high standards for the availability of power. As a result the power systems experience certain limitations and issues. This can partially be accredited to the decline of available dispatchable power, and ancillary services, resulting from the dismantling of power plants with synchronous generators. It has become apparent in the last few years that oil, coal, and nuclear power plants cannot be exchanged for wind and solar without complementary actions. The problems that southern Sweden faces is often debated in the media, and... (More)
- The Swedish power system, similar to those of other European countries, is currently transitioning from fossil to renewable. Simultaneously the electrification and digitalization of societies all over the world sets high standards for the availability of power. As a result the power systems experience certain limitations and issues. This can partially be accredited to the decline of available dispatchable power, and ancillary services, resulting from the dismantling of power plants with synchronous generators. It has become apparent in the last few years that oil, coal, and nuclear power plants cannot be exchanged for wind and solar without complementary actions. The problems that southern Sweden faces is often debated in the media, and left unattended the issues might grow more critical. At the same time it has been shown that it is not that easy to run a power plant in Sweden, due to lacking profitability. The controversial Nya Öresundsverket in Malmö made the headlines both when it opened in 2009, and again in 2017 when it had to close due to low profitability.
This project sets out to investigate the magnitude of the previously mentioned issues in the power sys- tem, with its focus in southern Sweden. In addition the function that ancillary services, such as inertia and reactive power, have in the power system will be investigated. While focusing on a specific power plant in Malmö, the role of combined heat and power in the Swedish power grid, today and in the future, is examined. Furthermore possible socio-economic benefits that the power plant would bring, and the profitability of the plant will be evaluated. The project also depicts under which circumstances the power plant would be the most profitable.
The project has been divided into six separate parts, in order to answer the proposed thesis questions. The six parts are connected sequentially and mimics the course of the project. Initially a model of the power plant is simulated to estimate the amount of heat and power the plant could optimally produce in a year. Secondly the supply and demand of quantities regarding power and district heating in Malmö is evaluated, to put the power plant into a
context. Thirdly the annual production of the power plant is compared to other renewable technologies, to show what would be needed to substitute the power plant. The fourth part sets out to find a price of inertia and reactive power, from the benefits it adds to the power system. Using the price for ancillary services, and the inital model of the power plant, the fifth part sets out to examine what is optimal to produce if the ancillary services were compensated. The final part is a financial analysis of the profitability of the plant, where the annual profit used is the result from the first and fifth part.
The results from the project are as follows. The south of Sweden needs more dispatchable power to balance the increasing variable production, and to ensure sufficient availability as the electricity demand increase. The system needs more synchronous inertia to avoid curtailment, and more reactive power to enable a larger power import to the region. In addition more district heating might be needed in Malmö as the city keeps growing. The power plant could be profitable during the current circumstances, but there are still significant uncertainties. The plant would be better equipped to survive, were the transmission system operator to pay a fair remuneration for supplied ancillary services. The introduction of financial compensation would mainly benefit smaller power plants, which have small economic margins. The action would probably be a cheaper solution for the system operators, than to invest in dedicated equipment for all ancillary services on their own.
In conclusion it is recommended to invest in the power plant, since it has shown to bring significant societal benefits, and considerable profit. With that said decision makers should be aware of the risks associated with the investment, and the fact that there are still large uncertainties in the calculations. The profitability possibly needs to be reevaluated, should more precise data become available. The role of ancillary services in the power system is currently being researched, and some theses suggest that economical remuneration might become reality in the future. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9051709
- author
- Martinsson, Truls LU
- supervisor
- organization
- course
- MVKM01 20211
- year
- 2021
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Combined heat-and-power, ancillary services, inertia, reactive power, optimization, profitability
- publication/series
- LUTMDN/TMHP-21/5475-SE
- report number
- 5475
- ISSN
- 0282-1990
- language
- Swedish
- id
- 9051709
- date added to LUP
- 2021-06-10 10:02:46
- date last changed
- 2021-06-10 10:02:46
@misc{9051709,
abstract = {{The Swedish power system, similar to those of other European countries, is currently transitioning from fossil to renewable. Simultaneously the electrification and digitalization of societies all over the world sets high standards for the availability of power. As a result the power systems experience certain limitations and issues. This can partially be accredited to the decline of available dispatchable power, and ancillary services, resulting from the dismantling of power plants with synchronous generators. It has become apparent in the last few years that oil, coal, and nuclear power plants cannot be exchanged for wind and solar without complementary actions. The problems that southern Sweden faces is often debated in the media, and left unattended the issues might grow more critical. At the same time it has been shown that it is not that easy to run a power plant in Sweden, due to lacking profitability. The controversial Nya Öresundsverket in Malmö made the headlines both when it opened in 2009, and again in 2017 when it had to close due to low profitability.
This project sets out to investigate the magnitude of the previously mentioned issues in the power sys- tem, with its focus in southern Sweden. In addition the function that ancillary services, such as inertia and reactive power, have in the power system will be investigated. While focusing on a specific power plant in Malmö, the role of combined heat and power in the Swedish power grid, today and in the future, is examined. Furthermore possible socio-economic benefits that the power plant would bring, and the profitability of the plant will be evaluated. The project also depicts under which circumstances the power plant would be the most profitable.
The project has been divided into six separate parts, in order to answer the proposed thesis questions. The six parts are connected sequentially and mimics the course of the project. Initially a model of the power plant is simulated to estimate the amount of heat and power the plant could optimally produce in a year. Secondly the supply and demand of quantities regarding power and district heating in Malmö is evaluated, to put the power plant into a
context. Thirdly the annual production of the power plant is compared to other renewable technologies, to show what would be needed to substitute the power plant. The fourth part sets out to find a price of inertia and reactive power, from the benefits it adds to the power system. Using the price for ancillary services, and the inital model of the power plant, the fifth part sets out to examine what is optimal to produce if the ancillary services were compensated. The final part is a financial analysis of the profitability of the plant, where the annual profit used is the result from the first and fifth part.
The results from the project are as follows. The south of Sweden needs more dispatchable power to balance the increasing variable production, and to ensure sufficient availability as the electricity demand increase. The system needs more synchronous inertia to avoid curtailment, and more reactive power to enable a larger power import to the region. In addition more district heating might be needed in Malmö as the city keeps growing. The power plant could be profitable during the current circumstances, but there are still significant uncertainties. The plant would be better equipped to survive, were the transmission system operator to pay a fair remuneration for supplied ancillary services. The introduction of financial compensation would mainly benefit smaller power plants, which have small economic margins. The action would probably be a cheaper solution for the system operators, than to invest in dedicated equipment for all ancillary services on their own.
In conclusion it is recommended to invest in the power plant, since it has shown to bring significant societal benefits, and considerable profit. With that said decision makers should be aware of the risks associated with the investment, and the fact that there are still large uncertainties in the calculations. The profitability possibly needs to be reevaluated, should more precise data become available. The role of ancillary services in the power system is currently being researched, and some theses suggest that economical remuneration might become reality in the future.}},
author = {{Martinsson, Truls}},
issn = {{0282-1990}},
language = {{swe}},
note = {{Student Paper}},
series = {{LUTMDN/TMHP-21/5475-SE}},
title = {{Kraftvärme - En förbisedd grundpelare i morgondagens förnybara elsystem}},
year = {{2021}},
}