IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v53y2013icp339-349.html
   My bibliography  Save this article

An investigation on the impacts of regulatory support schemes on distributed energy resource expansion planning

Author

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

Abstract

This paper proposes a novel approach for distributed energy resource (DER) expansion planning from investors' viewpoint based on a combination of dynamic programming algorithm and game theory. An innovative framework is proposed in this paper to consider different aspects of distributed energy resource planning. Wind turbines, gas engines and demand response (DR) programs are considered as DERs in this study. The intermittent nature and uncertainty of wind power generation and also uncertainty of demand response programs will cause the investors to consider risk in their investment decisions. In order to overcome this problem, a modified model has been derived to study the regulatory intervention impacts on wind expansion planning and implementing DR programs. Support schemes were contributed to both wind and DR programs to determine an optimum penetration level of these sources in distribution power system. A model based on intermittent nature of wind power generation and uncertainties of DR programs is developed which can calculate optimal investment strategies. The effectiveness of the proposed model is proved through implementing on a test system.

Suggested Citation

  • Sheikhi Fini, A. & Parsa Moghaddam, M. & Sheikh-El-Eslami, M.K., 2013. "An investigation on the impacts of regulatory support schemes on distributed energy resource expansion planning," Renewable Energy, Elsevier, vol. 53(C), pages 339-349.
    • Handle: RePEc:eee:renene:v:53:y:2013:i:c:p:339-349
    DOI: 10.1016/j.renene.2012.11.028
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096014811200763X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2012.11.028?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. Earle, Robert & Kahn, Edward P. & Macan, Edo, 2009. "Measuring the Capacity Impacts of Demand Response," The Electricity Journal, Elsevier, vol. 22(6), pages 47-58, July.
    2. Butler, Lucy & Neuhoff, Karsten, 2008. "Comparison of feed-in tariff, quota and auction mechanisms to support wind power development," Renewable Energy, Elsevier, vol. 33(8), pages 1854-1867.
    3. Meyer, Niels I., 2003. "European schemes for promoting renewables in liberalised markets," Energy Policy, Elsevier, vol. 31(7), pages 665-676, June.
    4. Falconett, Irina & Nagasaka, Ken, 2010. "Comparative analysis of support mechanisms for renewable energy technologies using probability distributions," Renewable Energy, Elsevier, vol. 35(6), pages 1135-1144.
    5. Ackermann, Thomas & Andersson, Göran & Söder, Lennart, 2001. "Overview of government and market driven programs for the promotion of renewable power generation," Renewable Energy, Elsevier, vol. 22(1), pages 197-204.
    6. Alishahi, E. & Moghaddam, M. Parsa & Sheikh-El-Eslami, M.K., 2012. "A system dynamics approach for investigating impacts of incentive mechanisms on wind power investment," Renewable Energy, Elsevier, vol. 37(1), pages 310-317.
    7. Hadjipaschalis, Ioannis & Kourtis, George & Poullikkas, Andreas, 2009. "Assessment of oxyfuel power generation technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2637-2644, December.
    8. 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. 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.
    2. Aryani, Morteza & Ahmadian, Mohammad & Sheikh-El-Eslami, Mohammad-Kazem, 2020. "Designing a regulatory tool for coordinated investment in renewable and conventional generation capacities considering market equilibria," Applied Energy, Elsevier, vol. 279(C).
    3. Ming, Zeng & Shaojie, Ouyang & Hui, Shi & Yujian, Ge & Qiqi, Qian, 2015. "Overall review of distributed energy development in China: Status quo, barriers and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1226-1238.
    4. Han, Xiaojuan & Ji, Tianming & Zhao, Zekun & Zhang, Hao, 2015. "Economic evaluation of batteries planning in energy storage power stations for load shifting," Renewable Energy, Elsevier, vol. 78(C), pages 643-647.
    5. Yang, Dong-xiao & Chen, Zi-yue & Nie, Pu-yan, 2016. "Output subsidy of renewable energy power industry under asymmetric information," Energy, Elsevier, vol. 117(P1), pages 291-299.
    6. Soares, N. & Martins, A.G. & Carvalho, A.L. & Caldeira, C. & Du, C. & Castanheira, É. & Rodrigues, E. & Oliveira, G. & Pereira, G.I. & Bastos, J. & Ferreira, J.P. & Ribeiro, L.A. & Figueiredo, N.C. & , 2018. "The challenging paradigm of interrelated energy systems towards a more sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 171-193.
    7. Poudineh, Rahmatallah & Jamasb, Tooraj, 2014. "Distributed generation, storage, demand response and energy efficiency as alternatives to grid capacity enhancement," Energy Policy, Elsevier, vol. 67(C), pages 222-231.
    8. Huang, Yalin & Söder, Lennart, 2017. "Evaluation of economic regulation in distribution systems with distributed generation," Energy, Elsevier, vol. 126(C), pages 192-201.
    9. Andoni, Merlinda & Robu, Valentin & Früh, Wolf-Gerrit & Flynn, David, 2017. "Game-theoretic modeling of curtailment rules and network investments with distributed generation," Applied Energy, Elsevier, vol. 201(C), pages 174-187.

    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. Alishahi, E. & Moghaddam, M. Parsa & Sheikh-El-Eslami, M.K., 2012. "A system dynamics approach for investigating impacts of incentive mechanisms on wind power investment," Renewable Energy, Elsevier, vol. 37(1), pages 310-317.
    2. Wiser, Ryan & Barbose, Galen & Holt, Edward, 2011. "Supporting solar power in renewables portfolio standards: Experience from the United States," Energy Policy, Elsevier, vol. 39(7), pages 3894-3905, July.
    3. Huang, Shih-Chieh & Lo, Shang-Lien & Lin, Yen-Ching, 2013. "Application of a fuzzy cognitive map based on a structural equation model for the identification of limitations to the development of wind power," Energy Policy, Elsevier, vol. 63(C), pages 851-861.
    4. Agnolucci, Paolo, 2008. "Factors influencing the likelihood of regulatory changes in renewable electricity policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(1), pages 141-161, January.
    5. Li, Jinke & Liu, Guy & Shao, Jing, 2020. "Understanding the ROC transfer payment in the renewable obligation with the recycling mechanism in the United Kingdom," Energy Economics, Elsevier, vol. 87(C).
    6. Schaefer, Manuel S. & Lloyd, Bob & Stephenson, Janet R., 2012. "The suitability of a feed-in tariff for wind energy in New Zealand—A study based on stakeholders' perspectives," Energy Policy, Elsevier, vol. 43(C), pages 80-91.
    7. Lesser, Jonathan A. & Su, Xuejuan, 2008. "Design of an economically efficient feed-in tariff structure for renewable energy development," Energy Policy, Elsevier, vol. 36(3), pages 981-990, March.
    8. Pineda, Salvador & Boomsma, Trine K. & Wogrin, Sonja, 2018. "Renewable generation expansion under different support schemes: A stochastic equilibrium approach," European Journal of Operational Research, Elsevier, vol. 266(3), pages 1086-1099.
    9. Kitzing, Lena, 2014. "Risk implications of renewable support instruments: Comparative analysis of feed-in tariffs and premiums using a mean–variance approach," Energy, Elsevier, vol. 64(C), pages 495-505.
    10. Stokes, Leah C., 2013. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario, Canada," Energy Policy, Elsevier, vol. 56(C), pages 490-500.
    11. del Río, Pablo & Tarancón, Miguel-Ángel, 2012. "Analysing the determinants of on-shore wind capacity additions in the EU: An econometric study," Applied Energy, Elsevier, vol. 95(C), pages 12-21.
    12. del Río, Pablo & Linares, Pedro, 2014. "Back to the future? Rethinking auctions for renewable electricity support," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 42-56.
    13. Martinát, Stanislav & Navrátil, Josef & Dvořák, Petr & Van der Horst, Dan & Klusáček, Petr & Kunc, Josef & Frantál, Bohumil, 2016. "Where AD plants wildly grow: The spatio-temporal diffusion of agricultural biogas production in the Czech Republic," Renewable Energy, Elsevier, vol. 95(C), pages 85-97.
    14. Kyunam Kim & Eunnyeong Heo & Yeonbae Kim, 2017. "Dynamic Policy Impacts on a Technological-Change System of Renewable Energy: An Empirical Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 205-236, February.
    15. Rossi, Federico & Heleno, Miguel & Basosi, Riccardo & Sinicropi, Adalgisa, 2021. "LCA driven solar compensation mechanism for Renewable Energy Communities: the Italian case," Energy, Elsevier, vol. 235(C).
    16. Dinica, Valentina, 2006. "Support systems for the diffusion of renewable energy technologies--an investor perspective," Energy Policy, Elsevier, vol. 34(4), pages 461-480, March.
    17. Kim, Kyunam & Kim, Yeonbae, 2015. "Role of policy in innovation and international trade of renewable energy technology: Empirical study of solar PV and wind power technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 717-727.
    18. Agnolucci, Paolo, 2007. "The effect of financial constraints, technological progress and long-term contracts on tradable green certificates," Energy Policy, Elsevier, vol. 35(6), pages 3347-3359, June.
    19. van Alphen, Klaas & Kunz, Huden S. & Hekkert, Marko P., 2008. "Policy measures to promote the widespread utilization of renewable energy technologies for electricity generation in the Maldives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1959-1973, September.
    20. Li, Shin-Je & Chang, Ting-Huan & Chang, Ssu-Li, 2017. "The policy effectiveness of economic instruments for the photovoltaic and wind power development in the European Union," Renewable Energy, Elsevier, vol. 101(C), pages 660-666.

    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:renene:v:53:y:2013:i:c:p:339-349. 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/renewable-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.