Abstract
This paper presents an analysis of the cost of
providing peak generation from new OCGT, CCGT and
Norwegian pumped hydro plants in a European power system
with high penetration of wind and solar power. A method for
calculation of the Levelized Cost of Peak Generation (LCPG) is
proposed, which builds on the well-established metric Levelized
Cost of Electricity (LCOE). Results from a case study shows that
building new reversible pumping stations between existing
reservoirs in the Norwegian hydro system are economical
advantageous over new CCGT and OCGT plants in Northern
Europe, taking into account additional costs of subsea cables
across the North Sea and corresponding reinforcements of the
mainland grid. The study also shows the importance of giving
interconnectors access to capacity markets across borders to
obtain as low cost as possible for firm capacity in a future
European system dominated by variable renewable production
providing peak generation from new OCGT, CCGT and
Norwegian pumped hydro plants in a European power system
with high penetration of wind and solar power. A method for
calculation of the Levelized Cost of Peak Generation (LCPG) is
proposed, which builds on the well-established metric Levelized
Cost of Electricity (LCOE). Results from a case study shows that
building new reversible pumping stations between existing
reservoirs in the Norwegian hydro system are economical
advantageous over new CCGT and OCGT plants in Northern
Europe, taking into account additional costs of subsea cables
across the North Sea and corresponding reinforcements of the
mainland grid. The study also shows the importance of giving
interconnectors access to capacity markets across borders to
obtain as low cost as possible for firm capacity in a future
European system dominated by variable renewable production