New cannot be measured with old. The transformation of the electricity system from a network of fossil-based dispatchable power plants to one with large amounts of intermittent renewable power generation, flexible loads and markets, requires a concurrent development of new evaluation tools and metrics. The focus of this research is to investigate the value of power technologies in order to support decision making on optimal power system design and operation. Technology valuation metrics need to consider the complexity and interdependency of environmental and security objectives, rather than focusing on individual cost-competitiveness of technologies outside of the power system. We present the System Value as a new technology valuation metric, based on a mixed-integer linear program (MILP) formulation of a national-scale electricity system. The Electricity System Optimization model is able to capture detailed technical operation of the individual power plants as well as environmental and security requirements on the system level. We present a case study on the System Value of onshore wind power plants in comparison with Carbon Capture and Storage (CCS) equipped gas-fired power plants in a 2035 UK electricity system. Under the given emission constraints, the deployment of both technologies reduce total system cost of electricity generation. In the case of CCS-equipped power plants the reductions in total system cost are 2 to 5 times higher than for the deployment of onshore wind capacity.
Heuberger, C. F., Staffell, I., Shah, N., Dowell, N. M., & Davison, J. (2017). An MILP Modeling Approach to Systemic Energy Technology Valuation in the 21st Century Energy System. In Energy Procedia (Vol. 114, pp. 6358–6365). Elsevier Ltd. https://doi.org/10.1016/j.egypro.2017.03.1772