Highly maneuverable generation

Highly maneuverable generation (HMG) –  a type of generation that is necessary for balancing the  United energy system (UES) of Ukraine, which can be in an idle state and, if necessary, quickly activated for a certain period of time and then shut down just as quickly.

In the near future, the UES of Ukraine will need to install highly maneuverable generation units of 2 GW or more, capable of starting and stopping at least four (in some cases up to eight) times a day with a regulation range of at least 80% of the installed capacity and a maximum available downtime between two consecutive start/stop cycles of 15 minutes (up to 1800-2000 starts per year) to avoid dispatch restrictions on RES generation and consumer load.

One of the ways to solve this problem is to install gas reciprocating and gas turbine units utilizing different types of fuel (natural gas, biogas, landfill gas, associated gas, etc.).

When selecting equipment of HMG, one should take into account the following features, namely:

Gas turbine unit (GTU)

requires 30-60 minutes to restart after each startup, the number of starts cannot exceed several per day, each cycle is taken into account in the calculation of the service life (reduction of the time between repairs)

Gas piston unit (GPU)

engines operate in pulses, performing thousands of starts per year, and the number of starts does not affect the service life or maintenance schedule, and they also have high fuel efficiency

The main technical characteristics that determine the quality and cost of highly maneuverable generation (HMG):
  • time of start-up and reaching the full capacity of the plant
  • ramp rate
  • power regulation range
  • ability to perform multiple start-stop cycles per day
  • fuel efficiency (in case of partial load operation mode)
  • absence of negative impact of cyclicality (many start-stop cycles) on maintenance costs
The HMG can be utilized in the following electricity markets:

Automatic secondary regulation (frequency restoration reserves – aFRRl) – ancillary services market(ASM)

Sales of electricity to balance the volume of electricity supply and demand over the course of the current day - the balancing market(BM)

Purchase of electricity for the purpose of regulating electricity imbalances of the parties responsible for the balance (solar and wind power plants) - BM

Sale of electricity on the day-ahead market (DAM)/ intraday market (IDM) and the bilateral contract market (BCM)

In addition, HMG can be used by existing consumers to reduce their own electricity consumption (saving on paying for electricity from the external power grid)

In order to participate in the ancillary services market and the balancing market, HMGs should participate in long-term ancillary services auctions and daily auctions for the BM.

Currently, the most economically and technically attractive market for HMG is the ancillary services market, i.e., the AFRRl.

Ancillary Services Market and Balancing Market

The work of the HMG implies readiness to provide aFRRl services on the ancillary services market and activation on the balancing market.

Price caps on the ancillary services market and the balancing market

Ancillary services market

Readiness to provide frequency restoration reserves – aFRRl

Current price

973.39 UAH/MW

Balancing market

Actual work of the HMG at the command of the TSO

Current price (depending on the time of the day)

up to 8250 UAH/MWh
Example of economical parameters for 19.5 MW HMG
The estimated budget for the project is EUR 17.24 million excluding VAT.

Calculation data

Value

Unit of measurement*

1

Facility's total power

19,461

MW

2

Working power for the load

19

MW

3

The price ceiling for the ASM ( aFRRl )

973,39

UAH/MW

4

Tariff for services of dispatch (operational and technological) management

104,57

UAH/MWh

5

Tariff for electricity transmission services

528,57

UAH/MWh

6

Class II tariff for electricity distribution services

2147,25

UAH/MWh

7

Approximate price on the balancing market

6020

UAH/MWh

8

Gas consumption per unit

357**

m3/hr

Assumption

Value

Unit of measurement*

1

Number of hours of operation readiness in the ASM per year

8000

hr

2

Number of activation hours on the BM (hours of actual work) per year

2000

hr

3

Cost of gas (price of gas, its transportation and distribution)

15,9

UAH / m3

4

Total amount of own needs of HMG (in working condition)

389,22**

kW

5

Total cost of scheduled maintenance of 1 unit

594 120**

* – all prices exclude VAT;

** – using a gas reciprocating units with a rated power of 1497 kW (electric) per unit based on the JGC 420 GS-N.L (Jenbacher).

The result of performed calculations:

Parameter

Value

Payback period, years

до 4*

NPV (discount rate 4.2%), EUR million

41

IRR

33%

* - payback period depends on the number and duration of activations and the time of day when the HMG operates on the balancing market.

Operation of HMG in order to reduce the company's electricity consumption

Example of economical parameters for 4.5 MW HMG
The estimated budget for the project is EUR 3.4 million excluding VAT.

Calculation data

Value

Unit of measurement*

1

Facility's total power

4,491

MW

2

Working power for the load

4,40118

MW

3

Tariff for electricity transmission services

528,57

UAH/MWh

4

Class II tariff for electricity distribution services

2147,25

UAH/MWh

5

Gas consumption per unit

357**

m3/hr

6

Existing tariff for electricity consumed by the enterprise

6,25

UAH/kWh

Assumption

Value

Unit of measurement*

1

Amount of hours of HMG operation per year

4000

hr

2

Number of working hours a company operates per day

12

hr

3

Cost of gas (price of gas, its transportation and distribution)

15,38

UAH/m3

4

Total amount of own needs of HMG (in working condition)

89,82**

kW

5

Total cost of scheduled maintenance of 1 unit

594 120**

* – all prices exclude VAT;

** – using a gas reciprocating units with a rated power of 1497 kW (electric) per unit based on the JGC 420 GS-N.L (Jenbacher).

The result of performed calculations:

Parameter

Value

Payback period, years

6*

NPV (discount rate 4.2%), EUR million

2,9

IRR

15,7%

* - The payback period depends on the HMG's operating time.

Partnership offer of IKNET

  • Developing a concept of project implementation
  • Providing the investor with a list of land plots prepared for registration for the installation of a HMG or opening a legal entity and registration of the selected land plot for the installation of a HMG
  • Technical and economic comparison of manufacturers and selection of optimal equipment for the HMG
  • Design work on the construction of the facility and connecting the facility to the power grid
  • Obtaining permits for the construction of the facility
  • Performing EPC contract functions
  • Organization of licensed activities for the production of electrical and thermal energy
  • Concluding respective agreements with the Transmission System Operator and the Distribution System Operator
  • Organizing the work of HMG on the electricity market (obtaining EIC codes, passing certification of conformity at the ASM, etc.)