Valuing Flexibility in Power Plants
- 1 December 2017
- Capture
The study was designed to investigate the value of flexible CCS-equipped power plants to the UK’s electricity system. The value used, the System Value (or SV), is a metric that quantifies the benefit, i.e. the reduction in total system cost, of adding a unit of a particular technology to the electricity grid. To operate effectively, an electricity grid must not only have adequate generating capacity to meet demand but also have reliable reserve generation capacity (e.g. as back-up for outages) and sufficient system inertia (for frequency control). While supply-side (e.g. energy storage) or demand-side (e.g. energy efficiency) mechanisms may offer alternatives to grid expansion, adding new capacity remains a central requirement for any grid, e.g. as power plants are retired and/or demand increases. Since not all technologies provide the same services to the grid, the value of adding a unit of a particular technology will be a function, at any given time, not just of the incremental increase in power demand that it may satisfy but also of the characteristics of the technologies already connected.