Abstract:This paper explores the impact of CO 2 emission trading on capacity planning of electric power transmission systems. Two different models for annual emission costs are assumed. The CO 2 emission price is modeled as a probability density function in the transmission network planning problem.The Monte Carlo technique is deployed to simulate the CO 2 emission price volatility. The transmission network planning problem is formulated as a mixed-integer optimization whose objective is to minimize the sum of annual g… Show more
“…But this is typically undertaken using some pre--determined allowance price (assumed to be correct on average at best). Kazerooni and Mutale [39], instead, approximate carbon allowance price by means of a Weibull distribution based on past data. They then introduce the carbon constraint as a changing operation cost in the objective function of transmission network planning.…”
Transmission investments are currently needed to meet an increasing electricity demand, to address security of supply concerns, and to reach carbon emissions targets. A key issue when assessing the benefits from an expanded grid concerns the valuation of the uncertain cash flows that result from the expansion. We develop a valuation model which combines optimization techniques, Monte Carlo simulation over the expansion project lifetime, and market data from futures contracts on commodities. The model allows for random failures in generation and transmission infrastructure. Uncertainty stems also from nodal loads, fuel prices, allowance prices, wind generation, and hydro generation. Thus the model accounts for the stochastic dynamics on both the demand side and the supply side. To demonstrate the model by example, we consider a simplified network with two nodes. It is intended to broadly resemble the power generation sectors in England/Wales and Scotland. We then focus on the proposed Western HVDC subsea link. We simulate the whole distribution of effects on system costs, carbon emissions, and unserved load.
“…But this is typically undertaken using some pre--determined allowance price (assumed to be correct on average at best). Kazerooni and Mutale [39], instead, approximate carbon allowance price by means of a Weibull distribution based on past data. They then introduce the carbon constraint as a changing operation cost in the objective function of transmission network planning.…”
Transmission investments are currently needed to meet an increasing electricity demand, to address security of supply concerns, and to reach carbon emissions targets. A key issue when assessing the benefits from an expanded grid concerns the valuation of the uncertain cash flows that result from the expansion. We develop a valuation model which combines optimization techniques, Monte Carlo simulation over the expansion project lifetime, and market data from futures contracts on commodities. The model allows for random failures in generation and transmission infrastructure. Uncertainty stems also from nodal loads, fuel prices, allowance prices, wind generation, and hydro generation. Thus the model accounts for the stochastic dynamics on both the demand side and the supply side. To demonstrate the model by example, we consider a simplified network with two nodes. It is intended to broadly resemble the power generation sectors in England/Wales and Scotland. We then focus on the proposed Western HVDC subsea link. We simulate the whole distribution of effects on system costs, carbon emissions, and unserved load.
“…The power-generation industry, which is the main sector of energy consumption and an important source of CO 2 emissions, will therefore operate the following low-carbon policy [1][2][3][4][5][6][7].…”
A substation planning method that accounts for the widespread introduction of distributed generators (DGs) in a low-carbon economy is proposed. With the proliferation of DGs, the capacity that DGs contribute to the distribution network has become increasingly important. The capacity of a DG is expressed as a capacity credit (CC) that can be evaluated according to the principle that the reliability index is unchanged before and after the introduction of the DG. A method that employs a weighted Voronoi diagram is proposed for substation planning considering CC. A low-carbon evaluation objective function is added to the substation planning model to evaluate the contribution of DGs to a low-carbon economy. A case study is analyzed to demonstrate the practicality of the proposed method.
“…Environmental aspects are included in TEP models in [21][22][23]. In [21] and [22], the environmental variable (CO 2 emissions) is included in the objective function.…”
mentioning
confidence: 99%
“…Environmental aspects are included in TEP models in [21][22][23]. In [21] and [22], the environmental variable (CO 2 emissions) is included in the objective function. The TEP problem is solved using genetic and simulated annealing algorithms in [21], while, in [22], the TEP is solved using mixed integer programming and accounting for security constraints and uncertainty in CO 2 prices.…”
mentioning
confidence: 99%
“…In [21] and [22], the environmental variable (CO 2 emissions) is included in the objective function. The TEP problem is solved using genetic and simulated annealing algorithms in [21], while, in [22], the TEP is solved using mixed integer programming and accounting for security constraints and uncertainty in CO 2 prices. On the other hand, in [23], the authors develop a method for internalizing environmental costs in the social cost-benefit analysis of transmission expansions.…”
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.