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    The Cost of Electricity: What India Needs To Do For Reliability, Security and Affordability of Electric Supply

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    rajat singh
    1) The cost of electricity can be divided into plant-level costs, grid-level costs, and other external costs. Plant-level costs include capital, operating, maintenance and fuel costs. Grid-level costs include transmission and distribution infrastructure costs as well as balancing costs associated with intermittent renewable energy sources like solar and wind. 2) The integration of large amounts of variable renewable energy (VRE) like solar and wind has increased grid-level costs due to needs for more backup generation capacity, grid reinforcement, and balancing of the electricity network. 3) For true parity between VRE sources and dispatchable sources like coal and nuclear, the total generation plus grid-level and external costs must be equal. Con

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    The Cost of Electricity: What India Needs To Do For Reliability, Security and Affordability of Electric Supply

    Uploaded by

    rajat singh
    29 views1 page
    1) The cost of electricity can be divided into plant-level costs, grid-level costs, and other external costs. Plant-level costs include capital, operating, maintenance and fuel costs. Grid-level costs include transmission and distribution infrastructure costs as well as balancing costs associated with intermittent renewable energy sources like solar and wind. 2) The integration of large amounts of variable renewable energy (VRE) like solar and wind has increased grid-level costs due to needs for more backup generation capacity, grid reinforcement, and balancing of the electricity network. 3) For true parity between VRE sources and dispatchable sources like coal and nuclear, the total generation plus grid-level and external costs must be equal. Con

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    1) The cost of electricity can be divided into plant-level costs, grid-level costs, and other external costs. Plant-level costs include capital, operating, maintenance and fuel costs. Grid-level costs include transmission and distribution infrastructure costs as well as balancing costs associated with intermittent renewable energy sources like solar and wind. 2) The integration of large amounts of variable renewable energy (VRE) like solar and wind has increased grid-level costs due to needs for more backup generation capacity, grid reinforcement, and balancing of the electricity network. 3) For true parity between VRE sources and dispatchable sources like coal and nuclear, the total generation plus grid-level and external costs must be equal. Con

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views1 page

    The Cost of Electricity: What India Needs To Do For Reliability, Security and Affordability of Electric Supply

    Uploaded by

    rajat singh
    1) The cost of electricity can be divided into plant-level costs, grid-level costs, and other external costs. Plant-level costs include capital, operating, maintenance and fuel costs. Grid-level costs include transmission and distribution infrastructure costs as well as balancing costs associated with intermittent renewable energy sources like solar and wind. 2) The integration of large amounts of variable renewable energy (VRE) like solar and wind has increased grid-level costs due to needs for more backup generation capacity, grid reinforcement, and balancing of the electricity network. 3) For true parity between VRE sources and dispatchable sources like coal and nuclear, the total generation plus grid-level and external costs must be equal. Con

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    The cost of electricity

    What India needs to do for reliability, security


    and affordability of electric supply
    day when solar is available and a rapid ramp
    up in the evening. This lowers the capacity
    factor of dispatchable generators. The DNEP
    acknowledges technological and operational
    challenges posed by the integration of VRE
    into the grid. It highlights the loss of genera-
    tion efficiency, high maintenance cost, and
    R.B. Grover
    higher emissions of combined cycle plants
    due to cycling and ramping. It details grid in-
    The cost of electricity can be divided into tegration cost of VRE in qualitative terms.
    plant-level costs, grid-level costs, and other A recent report by the Department of En-
    costs. Plant-level costs consist of capital, op- ergy, U.S., highlights another element that is
    eration and maintenance, and fuelling cost. smoothening of transients in the grid by the
    Capital cost is reflected in the cost of genera- inertia of the rotating mass present in
    tion by way of interest on debt and return on thermal power plants, while solar plants
    equity. For nuclear power plants, capital cost have no such feature.
    is high, but fuelling cost is low. System costs have been
    For coal-fired power plants, quantified by the Nuclear En-
    capital cost is low, but fuelling ergy Agency of the OECD and
    cost is high. The capital cost of differ across countries de-
    solar and wind is continuously pending on the extent of pres-
    decreasing; fuelling cost is nil. ence of sources like natural
    GETTY IMAGES

    Electricity reaches a con- gas. According to this quanti-


    sumer through the grid. Laying fication, system cost of VRE
    a grid needs significant invest- sources is much higher than
    ment. A distributor buys elec- nuclear and coal. True parity
    tricity from a generator, adds of VRE sources will be
    transmission and distribution charges, a achieved only when the sum of generation
    charge to recover technical losses, operating cost and system cost matches with that from
    expenses, and his profit to determine the tar- dispatchable sources.
    iff to be charged from a consumer. Since sev-
    eral generators are connected to the grid, in- Other costs
    teraction with the grid and grid-management Other costs include those arising from the in-
    policies influence the working of a generator. fluence of electricity generation on health,
    At present, electricity markets do not assign influence on existing generation capacity
    any price to system effects, that is, to the due to adding new capacity, cost of acci-
    complex interactions among various gener- dents, security of supplies and net energy
    ators connected to the grid. gain for society.
    In recent years, a large capacity based on In the Economic Survey 2016-17 (Volume
    variable renewable energy (VRE) sources has 2), an attempt has been made to estimate
    been connected to the grid. These sources grid-level costs and some other costs. The
    are intermittent, but get priority feed-in due survey uses the term social cost of carbon
    to nil fuelling cost. A grid manager must en- to represent economic cost of greenhouse
    sure that enough dispatchable generation ca- gas emissions. It also adds health costs, costs
    pacity is connected to the grid to meet the of intermittency, opportunity cost of land,
    peak load in the evening when solar power is cost of government incentives and cost
    not available. Dispatchable generation is arising from stranded assets. It, thus, in-
    provided by baseload technologies like coal cludes not only system cost, but a significant
    and nuclear, and by large hydropower. part of other costs as well. It estimates that
    Grid-level costs have several components: the total social cost of renewables was 11 per
    grid connection, grid extension and rein- kWh, around three times that of coal.
    forcement, short-term balancing costs, and Conventional metrics like levellised cost
    long-term costs for maintaining adequate of electricity generation cannot be relied on
    back-up supply. VRE sources demand much to compare intermittent and dispatchable
    higher back-up, grid connection and rein- electric supply options. Indias electricity re-
    forcement costs. This aspect needs attention quirements are enormous. It doesnt need a
    during policy formulation. technology versus technology debate, but a
    In December 2016, the Central Electricity policy framework that integrates all low-car-
    Authority issued a draft national electricity bon energy technologies with coal in a man-
    plan (DNEP), which refers to system effect ner that ensures reliability and security of
    and resulting system cost at several places. electric supply along with affordability and
    The emphasis on VRE sources without climate-resilient development.
    any investment in energy storage has conver-
    ted daily load profile for dispatchable gener- R.B. Grover is Homi Bhabha Chair, Department of
    ating stations into a duck curve, that is, Atomic Energy, and member, Atomic Energy
    with a reduced electricity load during the Commission

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