Economic condition for the operation of gas peak load power plant in Polish Power System

Abstract

The goal of the presented study was analyzing the economic conditions for the operation of a gas-fired power plant in the National Power System (KSE). The paper was analyzing electricity demand and methods of covering that demand with special focus on peaking sources. Shortages of power in the National Power System may be covered by import, reduction of consumer loads and by dedicated peaking sources. The authors have attempted to determine sales prices of electricity produced by peak power plant with a power of approx. 200 MW, at which the project is feasible. Two plant technologies were compared: aeroderivative gas turbines and reciprocating engines. For each of those cases a techno-economic analysis was performed along with a simplified analysis of sensitivity to selected parameters. Abilities to provide ancillary services such as emergency operation and operational capacity reserve were also taken into account. Calculations reveal that the specific costs of generating electricity at investigated plants greatly exceed electricity prices achieved in the market. However extra payments which would be required by peaking sources are at the same time much lower than the cost of load reduction (negawatts) or costs suffered by the industry due to restrictions in power supply. In addition, the provision of ancillary services, including secondary frequency regulation, significantly improves the economics and functionality of the proposed peak load power plant.