TY - JOUR
T1 - Sustainable resource planning in energy markets
AU - Kamalinia, Saeed
AU - Shahidehpour, Mohammad
AU - Wu, Lei
PY - 2014/11/15
Y1 - 2014/11/15
N2 - This study investigates the role of sustainable energy volatility in a market participant's competitive expansion planning problem. The incomplete information non-cooperative game-theoretic method is utilized in which each generation company (GENCO) perceives strategies of other market participants in order to make a decision on its strategic generation capacity expansion. Sustainable generation incentives, carbon emission penalties, and fuel price forecast errors are considered in the strategic decisions. The market clearing process for energy and reserves is simulated by each GENCO for deriving generation expansion decisions. A merit criterion (i.e., the utility value) is proposed for a more realistic calculation of the expected payoff of a GENCO with sustainable energy resources. Finally, the impact of transmission constraints is investigated on the GENCO's expansion planning decision. The case studies illustrate the effectiveness of the proposed method.
AB - This study investigates the role of sustainable energy volatility in a market participant's competitive expansion planning problem. The incomplete information non-cooperative game-theoretic method is utilized in which each generation company (GENCO) perceives strategies of other market participants in order to make a decision on its strategic generation capacity expansion. Sustainable generation incentives, carbon emission penalties, and fuel price forecast errors are considered in the strategic decisions. The market clearing process for energy and reserves is simulated by each GENCO for deriving generation expansion decisions. A merit criterion (i.e., the utility value) is proposed for a more realistic calculation of the expected payoff of a GENCO with sustainable energy resources. Finally, the impact of transmission constraints is investigated on the GENCO's expansion planning decision. The case studies illustrate the effectiveness of the proposed method.
KW - Energy market
KW - Expansion planning
KW - Game theory
KW - Generation company
KW - Sustainable energy resource
UR - http://www.scopus.com/inward/record.url?scp=84905658754&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84905658754&partnerID=8YFLogxK
U2 - 10.1016/j.apenergy.2014.07.065
DO - 10.1016/j.apenergy.2014.07.065
M3 - Article
AN - SCOPUS:84905658754
SN - 0306-2619
VL - 133
SP - 112
EP - 120
JO - Applied Energy
JF - Applied Energy
ER -