Generation expansion planning with revenue adequacy constraints

被引:10
作者
Guo, Cheng [1 ]
Bodur, Merve [1 ]
Papageorgiou, Dimitri J. [2 ]
机构
[1] Univ Toronto, Dept Mech & Ind Engn, Toronto, ON, Canada
[2] ExxonMobil Res & Engn Co, Corp Strateg Res, Houston, TX USA
关键词
OR in Energy; Generation expansion; Mixed-integer bilinear programming; Power system planning; Profitability; ELECTRICITY MARKET DESIGN; PART I; ENERGY; MODEL; TOOLS;
D O I
10.1016/j.cor.2022.105736
中图分类号
TP39 [计算机的应用];
学科分类号
081203 ; 0835 ;
摘要
Generation capacity expansion models have traditionally taken the vantage point of a centralized planner seeking to find cost-optimal generation capacity to reliably meet load over decadal time scales. Often assuming perfectly competitive players, these models attempt to provide guidance for system planners without necessarily ensuring that individual generators recover all of their costs from market revenues during their lifetime. In this work, we incorporate revenue adequacy constraints in a two-stage generation expansion planning model. After making generation investment decisions in the first stage, day-ahead unit commitment (UC) and dispatch decisions are made in the second stage, along with market-clearing pricing decisions. To approximate a market equilibrium, the duality gap between the second-stage non-convex UC problem and its linearly-relaxed dual is used as a regularizer. Case studies are presented to contrast a traditional planning model with our revenue adequacy-constrained model, which find that our model leads to different planning decisions. More specifically, our model invests in more renewable generation capacity by incurring a small increase in the total costs.
引用
收藏
页数:13
相关论文
共 40 条
[1]   MIXED-INTEGER BILINEAR-PROGRAMMING PROBLEMS [J].
ADAMS, WP ;
SHERALI, HD .
MATHEMATICAL PROGRAMMING, 1993, 59 (03) :279-305
[2]  
Anjos M. F., 2017, Found. Trends Electr. Energy Syst., V1, P220
[3]  
Borenstein S, 2017, MISSING MONEY
[4]   A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms [J].
Bublitz, Andreas ;
Keles, Dogan ;
Zimmermann, Florian ;
Fraunholz, Christoph ;
Fichtner, Wolf .
ENERGY ECONOMICS, 2019, 80 :1059-1078
[5]  
CAISO, 2017, DAIL REN OUTP DAT
[6]  
California ISO (CAISO), 2018, CAISO MONTHL STATS
[7]  
Conejo A., 2016, Investment in Electricity Generation and Transmission
[8]   Ensuring Profitability of Energy Storage [J].
Dvorkin, Yury ;
Fernandez-Blanco, Ricardo ;
Kirschen, Daniel S. ;
Pandzic, Hrvoje ;
Watson, Jean-Paul ;
Silva-Monroy, Cesar A. .
IEEE TRANSACTIONS ON POWER SYSTEMS, 2017, 32 (01) :611-623
[9]   Generation Capacity Expansion in a Risky Environment: A Stochastic Equilibrium Analysis [J].
Ehrenmann, Andreas ;
Smeers, Yves .
OPERATIONS RESEARCH, 2011, 59 (06) :1332-1346
[10]   On the Solution of Revenue- and Network-Constrained Day-Ahead Market Clearing Under Marginal Pricing-Part I: An Exact Bilevel Programming Approach [J].
Fernandez-Blanco, Ricardo ;
Arroyo, Jose M. ;
Alguacil, Natalia .
IEEE TRANSACTIONS ON POWER SYSTEMS, 2017, 32 (01) :208-219