The value of concentrating solar power in ancillary services markets

Ancillary services, such as spinning reserves, can provide grid reliability and contribute to profitability of an energy resource. We exercise an existing dispatch optimization model to estimate the profitability of a concentrating solar power plant by incorporating the sale of spinning reserves in...

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Bibliographic Details
Published in:Applied energy Vol. 334; p. 120518
Main Authors: Abiodun, Kehinde, Hood, Karoline, Cox, John L., Newman, Alexandra M., Zolan, Alex J.
Format: Journal Article
Language:English
Published: United States Elsevier Ltd 15.03.2023
Elsevier
Subjects:
Ancillary services
California
Concentrating solar power
electric power
electricity
ENERGY PLANNING, POLICY, AND ECONOMY
markets
mixed-integer programming
Mixed-integer programming applications
power plants
Price-taker
price-taker model
profitability
Renewable energy
simulation models
SOLAR ENERGY
Spinning reserves
Texas
thermal energy
Texas
California
Mixed-integer programming applications
Renewable energy
Spinning reserves
Concentrating solar power
Price-taker
Ancillary services
ISSN:0306-2619, 1872-9118
Online Access:Get full text
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Summary:Ancillary services, such as spinning reserves, can provide grid reliability and contribute to profitability of an energy resource. We exercise an existing dispatch optimization model to estimate the profitability of a concentrating solar power plant by incorporating the sale of spinning reserves in the ancillary service market using the National Renewable Energy Laboratory’s System Advisor Model to simulate operations within a 72-h rolling horizon framework. Assuming a price-taker approach with day-ahead energy and spinning reserve prices from both the California Independent System Operator and the Electricity Reliability Council of Texas, we find that selling spinning reserves in addition to electric energy increases plant profitability by up to 7% with perfect knowledge of day-ahead pricing and solar resource availability. This finding suggests that spinning reserve markets provide significant value streams to concentrating solar power plants that can leverage thermal energy storage to offer reliable production in the short-to-medium term. •We estimate the profitability of a concentrating solar power plant.•We incorporate the sale of spinning reserves in the ancillary service market.•We employ the National Renewable Energy Laboratory’s System Advisor Model.•We find that selling spinning reserves and energy increases plant profitability by up to 7%.•This finding suggests that spinning reserve markets offer significant value streams to CSP plants.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
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USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Solar Energy Technologies Office
AC36-08GO28308; 34245
NREL/JA-5700-84798
ISSN:0306-2619
1872-9118
DOI:10.1016/j.apenergy.2022.120518