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Sustainability 2017, 9(6), 874; doi:10.3390/su9060874

Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power

1
Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Beijing 102206, China
2
State Grid Electric Vehicle Service Co., Beijing 100053, China
*
Author to whom correspondence should be addressed.
Academic Editor: Tomonobu Senjyu
Received: 21 April 2017 / Revised: 19 May 2017 / Accepted: 19 May 2017 / Published: 25 May 2017
(This article belongs to the Section Energy Sustainability)
View Full-Text   |   Download PDF [1573 KB, uploaded 25 May 2017]   |  

Abstract

The increasing development of combined heat and power (CHP) plants is exacerbating the wind power curtailment problem in regional power grids during the winter heating season. Electric boilers (EBs) were proposed to be employed within CHP plants to relieve this problem. However, CHP plants usually have no incentive for investing in EBs. Therefore, CHP plants must be incentivized to make such investments through appropriate compensation from beneficiaries, i.e., government and wind farms, although this has not previously been discussed. We propose a game theory model to simulate the impact of government subsidies on EB investment. We analyzed the utilization of the involved parties with the marginal cost and average cost and applied game theory to simulate the investment decisions. Then, an approximate enumeration technique was developed to identify the optimum government subsidy. An actual case of a regional power grid in northern China was investigated to validate the proposed method. A minimum government subsidy to maximize total social benefit was calculated; this subsidy can incentivize wind farms and CHP plants to invest in and use EBs. View Full-Text
Keywords: wind power accommodation; combined heat and power (CHP) plants; electric boilers (EBs); government subsidy; game analysis model wind power accommodation; combined heat and power (CHP) plants; electric boilers (EBs); government subsidy; game analysis model
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Liu, D.; Wang, S.-K.; Liu, J.-C.; Huang, H.; Zhang, X.-P.; Feng, Y.; Wang, W.-J. Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power. Sustainability 2017, 9, 874.

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