# Joint Operation Modes and Economic Analysis of Nuclear Power and Pumped Storage Plants under Different Power Market Environments

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## Abstract

**:**

## 1. Introduction

## 2. Materials and Methods

#### 2.1. Research Framework

#### 2.2. Optimization Model for Power Expansion

#### 2.3. Joint Operation Simulation Model

#### 2.4. Economic Analysis of Joint Operation of Nuclear Power and Pumped Storage

#### 2.4.1. Analysis of Joint Operation Modes of Nuclear Power and Pumped Storage

- (1)
- Present independent operation mode

- (2)
- Short-term joint operation mode

- (3)
- Medium-term joint operation mode

- (4)
- Long-term joint operation mode

#### 2.4.2. Model for Calculating Financial Profitability from Joint Operation of Nuclear Power and Pumped Storage

## 3. Case Study

#### 3.1. Study Area

#### 3.2. Research Data

## 4. Results and Discussion

#### 4.1. Calculation of Allocation Ratio of Nuclear Power and Pumped Storage in the Power Grid

#### 4.2. Analysis of Joint Operation Modes of Power System with Nuclear Power and Pumped Storage

#### 4.3. Economic Analysis of Joint Operation of Nuclear Power and Pumped Storage in Different Power Market Environments

#### 4.3.1. Present Planned Dispatching Mode

#### 4.3.2. Short-Term Joint Operation Mode

#### 4.3.3. Medium-Term Joint Operation Mode

^{7}kW. Its construction period is 3 years, and the production and operation period is 30 years. The fixed asset investment is 4200 CNY/kW, and the capital is 25% of the total project investment. The on-grid price (i.e., the on-grid price of pumped storage) when the thermal power operates at the peak load is 0.8540 CNY/kW·h. This enables its FIRR to attain the benchmark rate of return of 8%.

#### 4.3.4. Long-Term Joint Operation Mode

#### 4.4. Comparison of Different Joint Operation Modes of Nuclear Power and Pumped Storage

## 5. Conclusions

- Using the power expansion optimization model, we could preliminarily obtain a suitable ratio of installed nuclear power to pumped storage of approximately 2.05–2.77:1 in 2025–2030 for the FJ power grid. The development mode with wind power, nuclear power, and pumped storage as the main incremental power sources can better address the future power demand and peak shaving capacity requirements of the power system.
- Joint operation of nuclear power and pumped storage can improve the economic competitiveness of the system. For nuclear power, pumped storage can ensure its base-load operating status, increase the utilization hours of power generation by 1000 h, and improve the operating economic performance. Pumped storage can obtain low-priced pumping power from nuclear power. This would effectively reduce the operating costs.
- Both nuclear power and pumped storage operate independently in the present planned dispatching stage. Moreover, their FIRRs are lower than the benchmark rate of return of 8% for the power industry. These cannot yield reasonable profits. Meanwhile, the FIRR of the joint operation of nuclear power and pumped storage increases, and profitability improves steadily under the short-term power market reform mode, medium-term relatively mature market mode, and long-term mature market mode. In the case of full marketization in the long term, the joint FIRR can attain up to 11.64%. This indicates that the promotion of power market reform would help fully utilize nuclear power and pumped storage hydropower.

## Author Contributions

## Funding

## Institutional Review Board Statement

## Informed Consent Statement

## Data Availability Statement

## Conflicts of Interest

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**Figure 2.**Pumping power price versus profitability in the short-term operation mode (*: Coordinate origin represents independent operation mode; 0.28 of the independent operation mode means the pumping power price supplied by power grid. The price of 0.1–0.28 of the joint operation mode refers to the power the pumping power price supplied by nuclear power).

**Figure 3.**Pumping power price versus profitability in the medium-term operation mode (*: Coordinate origin represents independent operation mode; 0.28 of the independent operation mode means the pumping power price supplied by power grid. The price of 0.1–0.28 of the joint operation mode refers to the power the pumping power price supplied by nuclear power).

**Figure 4.**Pumping power price versus profitability in the long-term operation mode (* coordinate origin represents independent operation mode; 0.28 of the independent operation mode means the pumping power price supplied by power grid. The price of 0.1–0.28 of the joint operation mode refers to the power the pumping power price supplied by nuclear power).

**Figure 5.**Profitability of the joint system and pumped storage versus pumping power price in the short-, medium-, and long-term operation modes. (* The first 0.28 on the abscissa represents independent operation mode; 0.28 of the independent operation mode means the pumping power price supplied by power grid. The price of 0.1–0.28 of the joint operation mode refers to the power the pumping power price supplied by nuclear power).

Item | Investment Cost | Operating Costs |
---|---|---|

Coal power | 4200 CNY/kW | 850 CNY/t |

Natural gas | 3700 CNY/kW | 2.7 CNY/m^{3} |

Nuclear power | 15,000 CNY/kW | 0.25 CNY/kW·h |

Pumped storage power | 4500 CNY/kW | 112.5 CNY/kW |

Item | 2020 | 2025 | 2030 |
---|---|---|---|

Annual power demand (10^{8} kW·h) | 2580 | 3200 | 3645 |

Maximum annual load (10^{4} kW) | 4400 | 5700 | 6620 |

Installed capacity system (10^{4} kW) | 6373 | 7482 | 8729 |

Conventional hydropower (10^{4} kW) | 1190 | 1190 | 1190 |

Thermal power (10^{4} kW) | 3528 | 3528 | 3528 |

Wind power (10^{4} kW) | 555 | 780 | 1000 |

Nuclear power (10^{4} kW) | 980 | 1335 | 2331 |

Pumped storage (10^{4} kW) | 120 | 650 | 680 |

Item | Scenario 1 | Scenario 2 |
---|---|---|

Maximum system load (10^{4} kW) | 6620 | 6620 |

Annual power demand (10^{8} kW·h) | 3645 | 3645 |

Total installed capacity (10^{4} kW) | 8729 | 8729 |

Conventional hydropower (10^{4} kW) | 1190 | 1190 |

Pumped storage (10^{4} kW) | 500 | 680 |

YX plant | 0 | 180 |

Thermal power (10^{4} kW) | 3528 | 3528 |

Nuclear power (10^{4} kW) | 2511 | 2331 |

FQ + ND plants | 1089 | 1089 |

ZZ plant | 480 | 480 |

Additional nuclear power | 942 | 762 |

Wind power (10^{4} kW) | 1000 | 1000 |

Annual total power generation (10^{8} kW·h) | 3756 | 3806 |

Conventional hydropower (10^{8} kW·h) | 386 | 386 |

Pumped storage (10^{8} kW·h) | 83 | 120 |

YX plant | 0 | 30 |

Nuclear power (10^{8} kW·h) | 1760 | 1773 |

FQ + ND plants | 763 | 807 |

ZZ plant | 336 | 384 |

Additional nuclear power | 661 | 581 |

Wind power (10^{8} kW·h) | 307 | 307 |

Annual generation hours of pumped storage (hours) | 1660 | 1771 |

Annual generation hours of YX | 0 | 1675 |

ZZ nuclear power (hours) | 7000 | 8000 |

Increase the annual generation hours of ZZ nuclear power (hours) | - | 1000 |

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**MDPI and ACS Style**

Wang, Y.; Fang, G.
Joint Operation Modes and Economic Analysis of Nuclear Power and Pumped Storage Plants under Different Power Market Environments. *Sustainability* **2022**, *14*, 9128.
https://doi.org/10.3390/su14159128

**AMA Style**

Wang Y, Fang G.
Joint Operation Modes and Economic Analysis of Nuclear Power and Pumped Storage Plants under Different Power Market Environments. *Sustainability*. 2022; 14(15):9128.
https://doi.org/10.3390/su14159128

**Chicago/Turabian Style**

Wang, Yanyue, and Guohua Fang.
2022. "Joint Operation Modes and Economic Analysis of Nuclear Power and Pumped Storage Plants under Different Power Market Environments" *Sustainability* 14, no. 15: 9128.
https://doi.org/10.3390/su14159128