An Integrated Analysis of Technical and Economic Problems to Support Power System Constraints with a Highly Dependence of Thermal Power Plants

Abstract

In a centralized wholesale power system market scenario, the transmission and distribution constraints limit dispatch and require additional generation to support an integrated area known as Security Generation. This one must be covered in each area, and its cost transferred to the final users. The security generation cost gets higher when operation implicates the use of thermal power plants whose price equation depends on international fuels costs. This paper examines the consequences of a high reliance on thermal power plants. It focuses on scheduled reserves affecting electricity unit costs and the potential for constraints to lead to long-term consequences. The paper analyzes the security generation behavior based on reports and uses a real scenario to support simulations and decisions, evidencing monthly cost and an estimated CO2 emission. Results show the direct cost-saving potential of investing in renewable projects and technology. The paper can allow to replicate the analysis in comparable areas and regions with similar challenges.