Developing Environmental Based Incentive Mechanism to Increase Wind Penetration Rate in Competitive Smart Power System
Subject Areas : Renewable energies and Smart gridsShoorangiz shams shamsabad Farahani 1 , Ehsan Ghaeni 2 , Roohollah Barzamini 3 , Mohammad Arabian 4
1 - Departement of Electrical Engineering, Islamshahr Branch Islamic Azad university,Iran
2 - Hormozgan Electric Distribution Company
3 - Assistant Professor, Department of Electrical Engineering, Central Tehran, Islamic Azad University, Tehran, Iran
4 - Department of Electrical Engineering, Islamic Azad University Tehran Central Branch,
Keywords: Wind Generation, Environmental based incentive mechanism, Smart Grid, Generation expansion planning.,
Abstract :
Smart grids play a crucial role in transitioning to a low-carbon energy sector by ensuring the efficient and sustainable utilization of natural resources, such as wind generation. The high penetration rate of intermittent wind generation in competitive smart power systems necessitates the development of more sophisticated support schemes for this resource. Most current policies rely on financial incentives for wind generation. However, determining the cost of these support schemes in a competitive electricity market poses a significant challenge, which is addressed in this paper. This paper presents a novel framework that combines a dynamic programming (DP) algorithm with a two-level matrix game model to develop an environmentally-based incentive mechanism rooted in generation expansion planning. In this incentive mechanism, power generation that produces pollution incurs penalties, while wind generation receives incentives for producing clean energy. A key benefit of this mechanism is that the cost of wind generation incentives is offset by the penalty revenue from polluting generation. This framework is implemented on a test system to demonstrate the effectiveness of the proposed approach.
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