Open AccessBi‐level model for generation expansion planning with contract pricing of renewable energy in the presence of energy storage
Author(s) -
Rafiei Seyed Arash,
Mohammadiivatloo Behnam,
Asadi Somayeh,
Goldani Saeedreza,
Falaghi Hamid
Publication year - 2019
Publication title -
iet renewable power generation
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.005
H-Index - 76
eISSN - 1752-1424
pISSN - 1752-1416
DOI - 10.1049/iet-rpg.2019.0074
Subject(s) - wind power , renewable energy , incentive , energy storage , operator (biology) , computer science , mathematical optimization , market clearing , operations research , microeconomics , environmental economics , economics , engineering , power (physics) , electrical engineering , mathematics , physics , quantum mechanics , biochemistry , chemistry , repressor , transcription factor , gene
This study presents a bi‐level model for expansion planning of generation systems. The proposed model endogenously determines the incentive to invest (guaranteed purchase contract) for wind and storage units. In the upper level of the proposed model, wind turbines and compressed air storage systems focus on maximising their profits by presenting a strategic offering, while at the lower level, there is an independent system operator with the purpose of increasing social welfare run the market clearing equations. In solving the bi‐level model, the Karush–Kuhn–Tucker conditions are used to develop the mathematical program with equilibrium constraints. The problem was first linearised and then solved by GAMS software. The outputs of this problem are the installation time and capacity of the wind and storage units and the price of the purchase contract. The obtained results were compared with other existing studies for verification purposes.