Energy efficiency resource modeling in generation expansion planning

• Published in: Energy (Oxford) Vol. 68; pp. 529 - 537
• Main Authors: Ghaderi, A., Parsa Moghaddam, M., Sheikh-El-Eslami, M.K.
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 15.04.2014; Elsevier
• Subjects: Algorithms; Applied sciences; Computer simulation; Efficiency power plant (EPP); Energy; Energy efficiency; Energy management; Exact sciences and technology; Generation expansion planning (GEP); Markets; Maximization; Reduction; Regulatory support scheme; Risk; Security; Energy efficiency; Generation expansion planning (GEP); Regulatory support scheme; Efficiency power plant (EPP); Energy resources; Energy conservation; Energetic efficiency; Planning; Expansion; Modeling; Energy savings
• ISSN: 0360-5442
• DOI: 10.1016/j.energy.2014.02.028

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. •An economic model for energy efficiency programs is presented.•A framework is provided to model energy efficiency resources in GEP problem.•FIT is investigated as a regulatory support scheme to encourage the EPP investor.•The capacity expansion is delayed and reduced with considering EPP in GEP.•FIT-II can more effectively increase the energy saving compared to FIT-I.