True cost of cycling enhances the value of dispatchable hydro

Conference · Sun Dec 31 04:00:00 EST 1995

OSTI ID:220115

Grimsrud, G P; Lefton, S A ^[1]; Steury, J ^[2]

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1. Aptech Engineering Services, Inc., Sunnyvale, CA (United States)
2. Electric Power Software, Oakland, CA (United States)

This paper focuses on a value of dispatchable hydropower that has been greatly underestimated by utility planners, and state and federal regulators. In recent years, many utilities` thermal generation units, particularly older coal, oil and gas units, have been forced to cycle - often on almost a daily basis. This is partially because of the commissioning of newer nuclear and large coal units, and partially due to the infusion of power from base loaded independent power producers (IPPs). What some utilities have found is that the true, or total, cost of cycling these older fossil units is many times the cost that they have historically used in making their dispatch decisions. Aptech Engineering Services, Inc. (APTECH), through its many years of studying generation unit failures and performance, has found that cycling accelerates the wear and tear of many components of a generation unit. The result is that increased cycling leads to higher maintenance costs and durations, increased forced outage rates, higher heat rates (i.e., lower efficiencies), and shortened life expectancies. We have helped several utilities derive unit-specific total cost of cycling estimates, which are then used to make better dispatch decisions, and to properly value resource opportunities such as base loaded IPP power and dispatchable hydropower. When the true cost of cycling is properly accounted for, the value of dispatchable hydro and pumped storage resources significantly increases, and the value of competing base loaded fossil and cogeneration resources significantly decreases.

• OSTI ID: 220115
• Report Number(s): CONF-9507190--
• Country of Publication: United States
• Language: English

Related Subjects

13 HYDRO ENERGY
COST
HYDROELECTRIC POWER PLANTS
OPERATION
PLANNING