IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v68y2014icp529-537.html
   My bibliography  Save this article

Energy efficiency resource modeling in generation expansion planning

Author

Listed:
  • Ghaderi, A.
  • Parsa Moghaddam, M.
  • Sheikh-El-Eslami, M.K.

Abstract

Energy efficiency plays an important role in mitigating energy security risks and emission problems. In this paper, energy efficiency resources are modeled as efficiency power plants (EPP) to evaluate their impacts on generation expansion planning (GEP). The supply curve of EPP is proposed using the production function of electricity consumption. A decision making framework is also presented to include EPP in GEP problem from an investor's point of view. The revenue of EPP investor is obtained from energy cost reduction of consumers and does not earn any income from electricity market. In each stage of GEP, a bi-level model for operation problem is suggested: the upper-level represents profit maximization of EPP investor and the lower-level corresponds to maximize the social welfare. To solve the bi-level problem, a fixed-point iteration algorithm is used known as diagonalization method. Energy efficiency feed-in tariff is investigated as a regulatory support scheme to encourage the investor. Results pertaining to a case study are simulated and discussed.

Suggested Citation

  • Ghaderi, A. & Parsa Moghaddam, M. & Sheikh-El-Eslami, M.K., 2014. "Energy efficiency resource modeling in generation expansion planning," Energy, Elsevier, vol. 68(C), pages 529-537.
    • Handle: RePEc:eee:energy:v:68:y:2014:i:c:p:529-537
    DOI: 10.1016/j.energy.2014.02.028
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544214001625
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2014.02.028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schleich, Joachim & Rogge, Karoline S. & Betz, Regina, 2008. "Incentives for energy efficiency in the EU Emissions Trading Scheme," Working Papers "Sustainability and Innovation" S2/2008, Fraunhofer Institute for Systems and Innovation Research (ISI).
    2. Oak, Neeraj & Lawson, Daniel & Champneys, Alan, 2014. "Performance comparison of renewable incentive schemes using optimal control," Energy, Elsevier, vol. 64(C), pages 44-57.
    3. Gillingham, Kenneth & Newell, Richard G. & Palmer, Karen L., 2004. "Retrospective Examination of Demand-Side Energy Efficiency Policies," Discussion Papers 10477, Resources for the Future.
    4. Eyre, Nick, 2013. "Energy saving in energy market reform—The feed-in tariffs option," Energy Policy, Elsevier, vol. 52(C), pages 190-198.
    5. Vine, Edward & Hamrin, Jan & Eyre, Nick & Crossley, David & Maloney, Michelle & Watt, Greg, 2003. "Public policy analysis of energy efficiency and load management in changing electricity businesses," Energy Policy, Elsevier, vol. 31(5), pages 405-430, April.
    6. Moghaddam, M. Parsa & Abdollahi, A. & Rashidinejad, M., 2011. "Flexible demand response programs modeling in competitive electricity markets," Applied Energy, Elsevier, vol. 88(9), pages 3257-3269.
    7. Wijayatunga, Priyantha D.C., 2014. "Regulation for renewable energy development: Lessons from Sri Lanka experience," Renewable Energy, Elsevier, vol. 61(C), pages 29-32.
    8. Brennan, Timothy J. & Palmer, Karen L., 2013. "Energy efficiency resource standards: Economics and policy," Utilities Policy, Elsevier, vol. 25(C), pages 58-68.
    9. Haas, Reinhard & Resch, Gustav & Panzer, Christian & Busch, Sebastian & Ragwitz, Mario & Held, Anne, 2011. "Efficiency and effectiveness of promotion systems for electricity generation from renewable energy sources – Lessons from EU countries," Energy, Elsevier, vol. 36(4), pages 2186-2193.
    10. Banovac, Eraldo & Gelo, Tomislav & Simurina, Jurica, 2007. "Analysis of economic characteristics of a tariff system for thermal energy activities," Energy Policy, Elsevier, vol. 35(11), pages 5591-5600, November.
    11. Toshi H. Arimura, Shanjun Li, Richard G. Newell, and Karen Palmer, 2012. "Cost-Effectiveness of Electricity Energy Efficiency Programs," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    12. Al-Mansour, Fouad, 2011. "Energy efficiency trends and policy in Slovenia," Energy, Elsevier, vol. 36(4), pages 1868-1877.
    13. Huang, Yun-Hsun & Wu, Jung-Hua, 2011. "Assessment of the feed-in tariff mechanism for renewable energies in Taiwan," Energy Policy, Elsevier, vol. 39(12), pages 8106-8115.
    14. Blok, Kornelis, 2005. "Enhanced policies for the improvement of electricity efficiencies," Energy Policy, Elsevier, vol. 33(13), pages 1635-1641, September.
    15. Moreno, Blanca & López, Ana J. & García-Álvarez, María Teresa, 2012. "The electricity prices in the European Union. The role of renewable energies and regulatory electric market reforms," Energy, Elsevier, vol. 48(1), pages 307-313.
    16. Loreta Stankeviciute & Patrick Criqui, 2008. "Energy and climate policies to 2020 : the impacts of the european " 20/20/20 " approach," Post-Print halshs-00226208, HAL.
    17. Xinmin Hu & Daniel Ralph, 2007. "Using EPECs to Model Bilevel Games in Restructured Electricity Markets with Locational Prices," Operations Research, INFORMS, vol. 55(5), pages 809-827, October.
    18. Gellings, Clark W. & Wikler, Greg & Ghosh, Debyani, 2006. "Assessment of U.S. Electric End-Use Energy Efficiency Potential," The Electricity Journal, Elsevier, vol. 19(9), pages 55-69, November.
    19. Inglesi-Lotz, R. & Pouris, A., 2012. "Energy efficiency in South Africa: A decomposition exercise," Energy, Elsevier, vol. 42(1), pages 113-120.
    20. Paul, Anthony & Palmer, Karen & Woerman, Matt, 2011. "Supply Curves for Conserved Electricity," RFF Working Paper Series dp-11-11, Resources for the Future.
    21. Fleiter, Tobias & Fehrenbach, Daniel & Worrell, Ernst & Eichhammer, Wolfgang, 2012. "Energy efficiency in the German pulp and paper industry – A model-based assessment of saving potentials," Energy, Elsevier, vol. 40(1), pages 84-99.
    22. Hu, Zhaoguang & Wen, Quan & Wang, Jianhui & Tan, Xiandong & Nezhad, Hameed & Shan, Baoguo & Han, Xinyang, 2010. "Integrated resource strategic planning in China," Energy Policy, Elsevier, vol. 38(8), pages 4635-4642, August.
    23. Westner, Günther & Madlener, Reinhard, 2011. "Development of cogeneration in Germany: A mean-variance portfolio analysis of individual technology’s prospects in view of the new regulatory framework," Energy, Elsevier, vol. 36(8), pages 5301-5313.
    24. Sovacool, Benjamin K., 2009. "The importance of comprehensiveness in renewable electricity and energy-efficiency policy," Energy Policy, Elsevier, vol. 37(4), pages 1529-1541, April.
    25. Blumstein, Carl & Goldman, Charles & Barbose, Galen, 2005. "Who should administer energy-efficiency programs?," Energy Policy, Elsevier, vol. 33(8), pages 1053-1067, May.
    26. Aalami, H.A. & Moghaddam, M. Parsa & Yousefi, G.R., 2010. "Demand response modeling considering Interruptible/Curtailable loads and capacity market programs," Applied Energy, Elsevier, vol. 87(1), pages 243-250, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerardo J. Osório & Miadreza Shafie-khah & Mohamed Lotfi & Bernardo J. M. Ferreira-Silva & João P. S. Catalão, 2019. "Demand-Side Management of Smart Distribution Grids Incorporating Renewable Energy Sources," Energies, MDPI, vol. 12(1), pages 1-23, January.
    2. Sadeghi, Hadi & Rashidinejad, Masoud & Abdollahi, Amir, 2017. "A comprehensive sequential review study through the generation expansion planning," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1369-1394.
    3. Lennard Sund & Saber Talari & Wolfgang Ketter, 2022. "Stochastic Wind Power Generation Planning in Liberalised Electricity Markets within a Heterogeneous Landscape," Energies, MDPI, vol. 15(21), pages 1-21, October.
    4. Hamad, Tarek A. & Agll, Abdulhakim A. & Hamad, Yousif M. & Bapat, Sushrut & Thomas, Mathew & Martin, Kevin B. & Sheffield, John W., 2014. "Study of a molten carbonate fuel cell combined heat, hydrogen and power system," Energy, Elsevier, vol. 75(C), pages 579-588.
    5. Zhang, Ning & Hu, Zhaoguang & Shen, Bo & He, Gang & Zheng, Yanan, 2017. "An integrated source-grid-load planning model at the macro level: Case study for China's power sector," Energy, Elsevier, vol. 126(C), pages 231-246.
    6. Koltsaklis, Nikolaos E. & Liu, Pei & Georgiadis, Michael C., 2015. "An integrated stochastic multi-regional long-term energy planning model incorporating autonomous power systems and demand response," Energy, Elsevier, vol. 82(C), pages 865-888.
    7. Fitiwi, Desta Z. & de Cuadra, F. & Olmos, L. & Rivier, M., 2015. "A new approach of clustering operational states for power network expansion planning problems dealing with RES (renewable energy source) generation operational variability and uncertainty," Energy, Elsevier, vol. 90(P2), pages 1360-1376.
    8. Marco Casazza & Francesco Gonella & Gengyuan Liu & Antonio Proto & Renato Passaro, 2021. "Physical Constraints on Global Social-Ecological Energy System," Energies, MDPI, vol. 14(23), pages 1-25, December.
    9. Batas Bjelić, Ilija & Rajaković, Nikola, 2015. "Simulation-based optimization of sustainable national energy systems," Energy, Elsevier, vol. 91(C), pages 1087-1098.
    10. Levihn, F. & Nuur, C. & Laestadius, S., 2014. "Marginal abatement cost curves and abatement strategies: Taking option interdependency and investments unrelated to climate change into account," Energy, Elsevier, vol. 76(C), pages 336-344.
    11. Fitiwi, Desta Z. & Lynch, Muireann & Bertsch, Valentin, 2020. "Enhanced network effects and stochastic modelling in generation expansion planning: Insights from an insular power system," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    12. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S., 2018. "State-of-the-art generation expansion planning: A review," Applied Energy, Elsevier, vol. 230(C), pages 563-589.
    13. Back, Jaime André & Tedesco, Leonel Pablo & Molz, Rolf Fredi & Nara, Elpidio Oscar Benitez, 2016. "An embedded system approach for energy monitoring and analysis in industrial processes," Energy, Elsevier, vol. 115(P1), pages 811-819.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marilyn Brown, 2015. "Innovative energy‐efficiency policies: an international review," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(1), pages 1-25, January.
    2. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    3. Dehnavi, Ehsan & Abdi, Hamdi, 2016. "Optimal pricing in time of use demand response by integrating with dynamic economic dispatch problem," Energy, Elsevier, vol. 109(C), pages 1086-1094.
    4. Woo, C.K. & Li, R. & Shiu, A. & Horowitz, I., 2013. "Residential winter kWh responsiveness under optional time-varying pricing in British Columbia," Applied Energy, Elsevier, vol. 108(C), pages 288-297.
    5. Kohler, Marcel, 2014. "Differential electricity pricing and energy efficiency in South Africa," Energy, Elsevier, vol. 64(C), pages 524-532.
    6. Adhikari, Rajendra & Pipattanasomporn, M. & Rahman, S., 2018. "An algorithm for optimal management of aggregated HVAC power demand using smart thermostats," Applied Energy, Elsevier, vol. 217(C), pages 166-177.
    7. Doostizadeh, Meysam & Ghasemi, Hassan, 2012. "A day-ahead electricity pricing model based on smart metering and demand-side management," Energy, Elsevier, vol. 46(1), pages 221-230.
    8. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    9. Ibrahim Alotaibi & Mohammed A. Abido & Muhammad Khalid & Andrey V. Savkin, 2020. "A Comprehensive Review of Recent Advances in Smart Grids: A Sustainable Future with Renewable Energy Resources," Energies, MDPI, vol. 13(23), pages 1-41, November.
    10. Blonz Joshua & Burtraw Dallas & Walls Margaret A, 2010. "Climate Policy's Uncertain Outcomes for Households: The Role of Complex Allocation Schemes in Cap-and-Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(2), pages 1-35, November.
    11. Boßmann, Tobias & Eser, Eike Johannes, 2016. "Model-based assessment of demand-response measures—A comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1637-1656.
    12. Mastropietro, Paolo & Herrero, Ignacio & Rodilla, Pablo & Batlle, Carlos, 2016. "A model-based analysis on the impact of explicit penalty schemes in capacity mechanisms," Applied Energy, Elsevier, vol. 168(C), pages 406-417.
    13. Neda Hajibandeh & Miadreza Shafie-khah & Sobhan Badakhshan & Jamshid Aghaei & Sílvio J. P. S. Mariano & João P. S. Catalão, 2019. "Multi-Objective Market Clearing Model with an Autonomous Demand Response Scheme," Energies, MDPI, vol. 12(7), pages 1-16, April.
    14. Yang, Shu-Xia & Nie, Tian-qi & Li, Cheng-Cheng, 2022. "Research on the contribution of regional Energy Internet emission reduction considering time-of-use tariff," Energy, Elsevier, vol. 239(PB).
    15. Pérez de Arce, Miguel & Sauma, Enzo & Contreras, Javier, 2016. "Renewable energy policy performance in reducing CO2 emissions," Energy Economics, Elsevier, vol. 54(C), pages 272-280.
    16. Stötzer, Martin & Hauer, Ines & Richter, Marc & Styczynski, Zbigniew A., 2015. "Potential of demand side integration to maximize use of renewable energy sources in Germany," Applied Energy, Elsevier, vol. 146(C), pages 344-352.
    17. Agustín García & María Teresa & García-à lvarez & Blanca Moreno, 2017. "Iberian Electricity Sector: A transition towards a more liberalized and sustainable market," GDAE Working Papers 17-01, GDAE, Tufts University.
    18. Alasseri, Rajeev & Rao, T. Joji & Sreekanth, K.J., 2020. "Institution of incentive-based demand response programs and prospective policy assessments for a subsidized electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    19. Hervás Soriano, Fernando & Mulatero, Fulvio, 2011. "EU Research and Innovation (R&I) in renewable energies: The role of the Strategic Energy Technology Plan (SET-Plan)," Energy Policy, Elsevier, vol. 39(6), pages 3582-3590, June.
    20. Palmer, Karen L. & Grausz, Samuel & Beasley, Blair & Brennan, Timothy J., 2013. "Putting a floor on energy savings: Comparing state energy efficiency resource standards," Utilities Policy, Elsevier, vol. 25(C), pages 43-57.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:68:y:2014:i:c:p:529-537. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.