Finding opportunity in economic power dispatch: Saving fuels without impacting retail electricity prices in fuel-producing countries
研究提出在燃料生产国按燃料机会成本调度发电机组，可在不提高终端电价的情况下节省燃料，并带来环境效益，支持净零排放目标和跨境电力交易。
In many oil- and natural gas-producing countries, fuels are allocated to the electricity sector at administratively set prices below international market prices for domestic policy reasons. This article shows that dispatching power units based on the opportunity costs of domestically used fuels can yield significant efficiencies, while end-user electricity prices can continue to reflect administratively set fuel prices. In addition, opportunity cost dispatch can bring environmental benefits when it results in switching the priority of oil and gas units in the merit order and facilitating investments in renewable energy. Therefore, this approach can support long-term net-zero emission targets. It can also resolve cross-border electricity trading issues faced by fuel-rich countries, which are reluctant to base their electricity exports on domestic fuel prices. • Analyze the benefits of dispatching power units based on fuel opportunity costs. • Apply the proposed dispatch to a real power system using numerical simulations. • Explore implications on expansion planning, environment, and electricity trading.