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Abstract

The article present results of economic efficiency evaluation of storage technology for electricity from coal power plants in large-scale chemical batteries. The benefits of using a chemical lithium-ion battery in a public power plant based on hard coal were determined on the basis of data for 2018 concerning the mining process. The analysis included the potential effects of using a 400 MWh battery to optimize the operation of 350 MW power units in a coal power plant. The research team estimated financial benefits resulting from the reduction of peak loads and the work of individual power units in the optimal load range. The calculations included benefits resulting from the reduction of fuel consumption (coal and heavy fuel oil – mazout) as well as from the reduction of expenses on CO2 emission allowances.

The evaluation of the economic efficiency was enabled by a model created to calculate the NPV and IRR ratios. The research also included a sensitivity analysis which took identified risk factors associated with changes in the calculation assumptions adopted in the analysis into account. The evaluation showed that the use of large-scale chemical batteries to optimize the operation of power units of the subject coal power plant is profitable. A conducted sensitivity analysis of the economic efficiency showed that the efficiency of the battery and the costs of its construction have the greatest impact on the economic efficiency of the technology of producing electricity in a coal power plant with the use of a chemical battery. Other variables affecting the result of economic efficiency are the factors related to battery durability and fuels: battery life cycle, prices of fuels, prices of CO2 emission allowances and decrease of the battery capacity during its lifetime.

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Authors and Affiliations

Piotr Krawczyk
ORCID: ORCID
Anna Śliwińska
Mariusz Ćwięczek
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Abstract

This work is a continuation and extension of previous socio-economic analyses of hard coal mines, which were conducted at the Central Mining Institute in the years 2013-2015. The paper presents the results of the economic evaluation of the hard coal mining sector in the years 2016-2018 using the Cost-Benefit Analysis (CBA) methodology. Used for the socio-economic assessment of hard coal mining, the CBA methodology enables the comprehensive evaluation of the functioning of this sector of the economy in Poland. In addition to financial aspects, which are important from the point of view of coal companies, it also included the social and environmental influence resulting from the impact of mines on the environment. Direct data of operating costs and payments (including public-law payments), incurred by the hard coal mining industry in Poland, was used. This data is obtained by Industrial Development Agency JSC, Branch Office Katowice as part of the “Program of statistical surveys of official statistics” – statistical survey “Hard coal and lignite mining industry”. They were supplemented with data coming from commonly available public statistics. For the analysed period the presented results indicate that the financial and social benefits resulting from the hard coal mining activity in Poland outweighed the financial, social and environmental costs generated by this industry. This confirms the desirability of further functioning of the hard coal mining industry in Poland, however, assuming effective restructuring activities that will result in lower costs of coal production.

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Authors and Affiliations

Piotr Krawczyk
ORCID: ORCID
Anna Śliwińska

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