The Effect of Wind Generation on Combined Heat and Power

• Supervisor: Prof. Mark O’Malley• Company: Dalkia

Combined Heat and Power

Merit Order Without Wind

35 3540

4045 45

55

55

120

Merit Order Curve Without Wind

Supply (MWh)

Gen

erati

on C

osts

(€/M

Wh)

Night Time Demand Daytime Demand Peak Demand

Merit Order With Wind

0 0

35 3540 4045 45

55

55

120 120

Merit Order Curve With Wind

Supply (MWh)

Gen

erati

on C

ost (

€/M

Wh)

Night Time Demand Daytime DemandPeak Demand

Portfolios Examined in Grid Study

Portfolio 1 (10% Wind)

Portfolio 2 (20% Wind)

Portfolio 5 (30% Wind)

0

2,000

4,000

6,000

8,000

10,000

Additions to 2005 Generation Portfolio

Other OCGT

CCGT Wind

Add

ition

s (M

W)

Wind Generation Pattern

Wind Variation 1999-2008

CHP Test Site – 1MW Gas Turbine

Historical and Projected Natural Gas Prices

Average System Marginal Price for CER Low Fuel Scenario

Difference in SMP Between 10% and 30% Wind

Effect of Wind on CHP Gross Savings

0 100 200 300 400 500 600 700 800 900 1,000 0%2%4%6%8%

10%12%14%16%18%20%22%

16%15%

13%

17%

16%14%

14%13%

12%

21%20%

19%

Savings and Percentage Savings in 2020 for CHP

Thousand Euro Saved Per Year with CHP

Perc

ent R

educ

tion

on

No

CHP

Ener

gy C

osts Low Fuel (€24/MWh)

Central Fuel (€47/MWh)

Low Demand (€47/MWh)

High Fuel (€70/MWh)

Correlation of Savings with Wind Penetration

Sensitivity Analysis 30% Wind Low Fuel

Gas Commodity CostDay Electricity (8am-11pm)

Night Electricity (11pm-8am)SEM Supplier Capacity Charge

Weekend ElectricityIrish Gas Transmission Capacity Charge

Carbon Tax (€15/tCO2 base level)Peak Winter Electricity (5-7pm)

DUoS Day Units ChargeSEM Rates

System Service ChargeTUoS Network Transmission Charge

Irish Gas Transport ChargeElectricity Tax

DUoS Night Units ChargeDemand Side Management

DUoS Standing ChargeDUoS Capacity Charge

TUoS Network Capacity Charge

0 50 100 150 200 250 300 350 400 450 500 550 600

Sensitivity Analysis Portfolio 5 Low Fuel (+-50%)

Thousand Euro Saved per Year with CHP

Conclusion

• Wind will reduce viability of CHP• Possible to counteract this by levying capacity

charges based on the volume of electricity a CHP imports, not on the capacity of their grid connection