Hedging electricity price volatility using nuclear power

Mari, Carlo

doi:10.1016/j.apenergy.2013.08.016

Cited by 35 publications

(33 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…We recall that a power system portfolio belongs to the portfolio frontier if it is at minimum risk (as measured by the standard deviation or by the CVaR deviation of the stochastic system LCOE) among all system portfolios with the same LCOE mean. By using Equation (12) for the fully dispatchable case (i.e., in the casew wi = 0), it is possible to draw system portfolio frontiers by plotting for each portfolio composition (i.e., for each value of w co and of w ga = 1 − w co with 0 ≤ w co ≤ 1) the mean against standard deviation of the system LCOE, or the mean against CVaR deviation of the system LCOE. Equation (12) shows that in the casew wi = 0, the individual producer's frontier coincides with the system frontier.…”

Section: Efficient System Portfolio Frontiers: the Dispatchable Casementioning

confidence: 99%

“…By using Equation (12) for the fully dispatchable case (i.e., in the casew wi = 0), it is possible to draw system portfolio frontiers by plotting for each portfolio composition (i.e., for each value of w co and of w ga = 1 − w co with 0 ≤ w co ≤ 1) the mean against standard deviation of the system LCOE, or the mean against CVaR deviation of the system LCOE. Equation (12) shows that in the casew wi = 0, the individual producer's frontier coincides with the system frontier. In this way, we can investigate the cost-risk trade off of power system portfolios.…”

Section: Efficient System Portfolio Frontiers: the Dispatchable Casementioning

confidence: 99%

“…In order to match demanded power capacity, dispatchable technologies (coal and gas in the following analysis) can be combined in many ways (infinite) into portfolios which differ among each other in terms of generation costs, i.e., in terms of LCOEs, but also in terms of economic and financial risk [12]. If non-dispatchable technologies have to be included in the system, this requires to take into account the two following problems.…”

Section: Introductionmentioning

confidence: 99%

“…Based on the stochastic LCOE theory developed in our previous work [12,14], the system LCOE theory will be then extended towards a "stochastic system LCOE theory", in order to include investment risk assessment into the analysis. In this regard, one should consider that economic and financial risk in the electric energy sector is mainly due to the high volatility of fossil fuels and CO 2 market prices [15].…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach

Lucheroni

Mari

2018

Energies

Self Cite

View full text Add to dashboard Cite

Abstract: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.

show abstract

Section: Efficient System Portfolio Frontiers: the Dispatchable Casementioning

confidence: 99%

Section: Efficient System Portfolio Frontiers: the Dispatchable Casementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach

Lucheroni

Mari

2018

Energies

Self Cite

View full text Add to dashboard Cite

show abstract

“…Nuclear power is regarded as a mean to secure energy supply [7] [8]. The reason is that nuclear fuel has stable prices and its compactness allows inexpensive reserves storage.…”

Section: Introductionmentioning

confidence: 99%

The Role of Nuclear Power from a System Engineering Standpoint

Freire¹,

Andrade²

2017

WJNST

View full text Add to dashboard Cite

This work proposed the application of system engineering methods to identify organizations vital for society, seeking development and well-being. System engineering requires the identification of blocks (or systems), identification of their service functions, identification of states, identification of required quality and identification of constraints. Analyzing modern societies, vital functions were identified and countries behavior was modeled, identifying their states. In this context, nuclear power was found to be fundamental for development and defense because of its inherent advantages for military naval purposes at war. Another striking conclusion is that nuclear power is the best solution for country energy security, more than to avoid climate changes, but to help the nation to resist climate changes. A solution to mitigate the high overnight costs of nuclear power was also proposed. It was demonstrated qualitatively that the adoption of dual purpose mobile nuclear power plants military performances, economic development and risks management.

show abstract

Marginal abatement cost curve for wind power in China: a provincial‐level analysis

Xiong

Yang

Wang

et al. 2016

Energy Science & Engineering

View full text Add to dashboard Cite

Wind power has seen a remarkable growth in China since the Renewable Energy Law came into force in the beginning of 2006. However, the contribution and the economic cost of wind power development to reduce carbon emission at the provincial level are still unclear. This research combined geographic information system analysis and levelized production cost calculation to provide provincial-level supply curve of carbon dioxide (CO 2 ) mitigation by wind power in China. The results showed that wind power could be a very competitive mitigation option in China, with a potential to contribute 500 million tons of CO 2 emission mitigation at an average abatement cost of 75 RMB/t of CO 2 mitigation. The emission abatement cost and the potential to reduce carbon emission in different provinces may be used for national planning as well as for the allocation of investments. 246

show abstract

Hedging electricity price volatility using nuclear power

Cited by 35 publications

References 15 publications

Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach

Optimal Integration of Intermittent Renewables: A System LCOE Stochastic Approach

The Role of Nuclear Power from a System Engineering Standpoint

Marginal abatement cost curve for wind power in China: a provincial‐level analysis

Contact Info

Product

Resources

About