The Impacts of Flexibility Enhancements on the Value of Gas Plant Operations

Abstract: The rapid increase of renewable generation and its anticipated continued growth requires greater operational flexibility in modern power systems. One of the methods to increase flexibility in the generation side is to enhance existing generators such as combined-cycle natural gas power plants which, are widely used. Potential flexibility upgrades to existing thermal plants include modifications that enable faster ramp rates, increase maximum load levels, decrease minimum load levels, and provide faster and lower cost startup operations. This research analyzes the effect that specific flexibility upgrades have on the operation of existing natural gas power plants and the value associated with these enhancements. In this research, we apply a unit commitment model to analyze the impact that each specific upgrade has on their operational dynamics and profitability from both the system perspective and from the asset owner perspective. The research publication, The Impacts of Distinct Flexibility Enhancements on the Value and Dynamics of Natural Gas Power Plant Operations, is available on (https://www.linkedin.com/company/ieee-xplore/) as an Early Access paper, (https://ieeexplore.ieee.org/abstract/document/9442870?casa_token=StBxY3MHGGoAAAAA:jd9KpVJbEtEZKh25rezXv99IaES4Q0BGr7u2rB5rEAm1mxxcBCsQtK_UGchZ6kLb185qR9EM1Q). Key takeaways: – Enhancing combined cycle plant flexibility DOES reduce system operator and consumer cost while maintaining system reliability – Enhancing flexibility DOES increase unit owner net revenue (profit) – Benefits of flexibility DEPEND on: type of flexibility enhancement, current unit capacity factor, and unit historical usage pattern – Implementing multiple types of flexibility simultaneously on a given power plant is more valuable than the sum of individual enhancements – The greater the share of non-dispatchable wind and solar capacity on the grid, the greater the value of combined cycle plant flexibility – Market designers should consider additional market mechanisms and incentives for existing generators to invest in increased flexibility Speaker(s): Arupam Narula, Bob Bellis Agenda: 11:45 Check-in and Presentation Technology Check 12:00 Presentation 12:50 Q&A Atlanta, Georgia, United States, Virtual: https://events.vtools.ieee.org/m/278042