The Total Social Cost Evaluation of Two Wind and PV Energy Development Modes: A Study on Henan of China

Abstract

In Henan province of China, the power demand is vigorous, and the existing provincial generators are mostly high-carbon. Henan faces greater challenges in electricity revolution than other provinces. Currently, there are two development modes for generating low-carbon electricity in Henan: the ‘‘large-scale and long-distance transmission” (LSLDT) mode and the “local development and consumption” (LDC) mode. To make a better choice on development mode, following works have been done. Firstly, the rooftop PV installation potential is evaluated and two development scenes for wind and PV power generation are set to fit the development trend of Henan in the near future. Secondly, a bi-level generation planning model based on the total social cost is established. Finally, generation planning schemes are made and the power supply cost per kWh electricity is evaluated. It is found that there is a significant cost advantage when wind and PV electricity are generated with the LDC mode in both scenes. What’s more, the existence of reliability cost, wheeling cost and grid-loss cost makes the LSLDT mode difficult to cut down the wind and PV power supply cost. Wind and PV power generation of the LDC mode should be focused on in Henan.