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Optimum policy for integration of renewable energy sources into the power generation system

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  • Miah, M. Suruz
  • Ahmed, N.U.
  • Chowdhury, Monjur

Abstract

In this paper we propose a dynamic model representing the temporal evolution of the levels of power generation (installed capacity) from two competing sources. These are renewable and conventional (fossil) sources. The percentage penetration rates of renewable and nonrenewable sources are considered as control or decision variables. We introduce an objective functional based on energy demand, production of pollution associated with usage of fossil fuels, and the cost of their systematic substitution by renewable sources. Pontryagin minimum principle is used to determine optimal control policy through minimizing energy generation from fossil fuels while meeting the energy demand as closely as possible through gradual replacement of nonrenewable sources by renewable ones. For different choices of plan periods, optimal generation path along with the corresponding control policies are presented. These results demonstrate that modern control theory can be used effectively to formulate optimal socio-economic policies.

Suggested Citation

  • Miah, M. Suruz & Ahmed, N.U. & Chowdhury, Monjur, 2012. "Optimum policy for integration of renewable energy sources into the power generation system," Energy Economics, Elsevier, vol. 34(2), pages 558-567.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:558-567
    DOI: 10.1016/j.eneco.2011.08.002
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    References listed on IDEAS

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    1. Edinger, Raphael & Kaul, Sanjay, 2000. "Humankind's detour toward sustainability: past, present, and future of renewable energies and electric power generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 4(3), pages 295-313, September.
    2. Costello, Ken, 2007. "Diversity of Generation Technologies: Implications for Decision-Making and Public Policy," The Electricity Journal, Elsevier, vol. 20(5), pages 10-21, June.
    3. Baños, R. & Manzano-Agugliaro, F. & Montoya, F.G. & Gil, C. & Alcayde, A. & Gómez, J., 2011. "Optimization methods applied to renewable and sustainable energy: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1753-1766, May.
    4. Shafiee, Shahriar & Topal, Erkan, 2009. "When will fossil fuel reserves be diminished?," Energy Policy, Elsevier, vol. 37(1), pages 181-189, January.
    5. Moss, Diana L. & Kwoka Jr., John E., 0. "Competition Policy and the Transition to a Low-Carbon, Efficient Electricity Industry," The Electricity Journal, Elsevier, vol. 23(7), pages 6-15, August.
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    Cited by:

    1. Nandeeta Neerunjun & Hubert Stahn, 2023. "Renewable energy support: pre-announced policies and (in)-efficiency," AMSE Working Papers 2335, Aix-Marseille School of Economics, France.
    2. Anthony Oliver & Madhu Khanna, 2018. "The spatial distribution of welfare costs of Renewable Portfolio Standards in the United States electricity sector," Letters in Spatial and Resource Sciences, Springer, vol. 11(3), pages 269-287, October.

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