Dynamic analysis of hybrid energy systems under flexible operation and variable renewable generation - Part II: Dynamic cost analysis

Dynamic analysis of HES (hybrid energy systems) under flexible operation and variable renewable generation is considered in this two-part communication to better understand various challenges and opportunities associated with the high system variability arising from the integration of renewable energy into the power grid. Advanced HES solutions are investigated in which multiple forms of energy commodities, such as electricity and chemical products, may be exchanged. In particular, a comparative dynamic cost analysis is conducted in this part two of the communication to determine best HES options. The cost function includes a set of metrics for computing fixed costs, such as fixed operations and maintenance and overnight capital costs, and also variable operational costs, such as cost of operational variability, variable operations and maintenance cost, and cost of environmental impact, together with revenues. Assuming natural gas, coal, and nuclear as primary heat sources, preliminary results identify the level of renewable penetration at which a given advanced HES option (e.g., a nuclear hybrid) becomes increasingly more economical than a traditional electricity-only generation solution. Conditions are also revealed under which carbon resources may be better utilized as carbon sources for chemical production rather than as combustion material for electricity generation.