A network constrained bi-level model for optimal generation expansion planning and optimal determination of feed-in tariffs for renewable energy resources

Rafiei, Seyed Arash; Goldani, Saeedreza; Falaghi, Hamid

doi:10.22109/jemt.2018.141337.1110

A network constrained bi-level model for optimal generation expansion planning and optimal determination of feed-in tariffs for renewable energy resources

Document Type : Original Article

Authors

Seyed Arash Rafiei ¹

Saeedreza Goldani ²

Hamid Falaghi ²

¹ Faculty of electrical and computer engineering / University of Birjand

² Faculty of Electrical and Computer Engineering, University of Birjand, Birjand, Iran

10.22109/jemt.2018.141337.1110

Abstract

This paper presents a new model for strategic generation expansion planning as well as investor decision making. The generation expansion planning in this paper is including the purchase of a guaranteed power, which is discussed at HL2. The existing problem has a target year (30 years later), which consists of several steps. Regarding time periods and strategic behavior of investors, a bi-level model is presented. The upper-level issue involves investment decisions and strategic products with the goal of maximizing investor profit and the lower-level includes market clearing equations aimed at maximizing social welfare. The bi-level model presented using the KKT conditions is converted into a problem of mathematical programming with equilibrium constraints (MPEC). In this paper, the contract price of the guaranteed purchase, the market price and the strategic offers as a variable in the problem that are in the output of the problem. The proposed model is implemented on a 6-bus network.

Keywords

Generation expansion planning

Bi-level problem

Contract pricing

Strategic offering

Subjects