Sustainable resource planning in energy markets

Saeed Kamalinia, Mohammad Shahidehpour, Lei Wu

Research output: Contribution to journalArticlepeer-review

38 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)112-120
Number of pages9
JournalApplied Energy
Volume133
DOIs
StatePublished - 15 Nov 2014

Keywords

  • Energy market
  • Expansion planning
  • Game theory
  • Generation company
  • Sustainable energy resource

Fingerprint

Dive into the research topics of 'Sustainable resource planning in energy markets'. Together they form a unique fingerprint.

Cite this