Impacts of generation-cycling costs on future electricity generation portfolio investment

Abstract

This paper assesses the impacts of incorporating short-term generation dispatch into long-term generation portfolio planning frameworks. A case study of a power system with coal, combined cycle gas turbine (CCGT), open cycle gas turbine (OCGT) and wind generation options highlights that incorporating operational criteria into the long-term generation investment and planning analysis can have operating, economic and emissions implications for the different generation portfolios. The extent of the impacts depends on a number of factors including dispatch strategies, carbon price and the mix of technologies within the portfolio. As variable generation within power systems increases and carbon pricing begins to change the merit order, such short-term operational considerations will become more significant for generation investment and planning.