A recursive cost model for optimal allocation of renewable energy resources

Egill Benedikt Hreinsson*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

A general recursive cost model is developed, describing the expansion process in a renewable-based power system with discrete projects. The projects are, for instance, hydro, geothermal or wind assuming specific investment costs and capacities, which is a measure of 'size'. The model is general in the sense that it assumes any nonlinear nondecreasing demand function and arbitrary costs or cost functions for each project. Previous results are expanded by defining Long range marginal and average cost concepts (LRMC and LRAC) and these are explicitly interlinked with the recursive expansion process. In addition, recursive expressions now include both costs and output. The LRMC and LRAC concepts are used in decision rules for recursively determining the optimal size or utilization of energy resources for each project, i.e. optimal sizing. In particular, previous results are expanded by the appropriate use of the LRMC and LRAC concepts to marginal sizing (Current Marginal Cost, CMC) for a general nonlinear demand. Finally a case study is demonstrated, using the model and concepts with actual cost and capacity data from the renewable-based Icelandic power system, with both linear and exponential demand.

Original languageEnglish
Title of host publication2016 IEEE Innovative Smart Grid Technologies - Asia, ISGT-Asia 2016
PublisherIEEE Computer Society
Pages491-496
Number of pages6
ISBN (Electronic)9781509043033
DOIs
Publication statusPublished - 22 Dec 2016
Event2016 IEEE Innovative Smart Grid Technologies - Asia, ISGT-Asia 2016 - Melbourne, Australia
Duration: 28 Nov 20161 Dec 2016

Publication series

NameIEEE PES Innovative Smart Grid Technologies Conference Europe

Conference

Conference2016 IEEE Innovative Smart Grid Technologies - Asia, ISGT-Asia 2016
Country/TerritoryAustralia
CityMelbourne
Period28/11/161/12/16

Bibliographical note

Publisher Copyright:
© 2016 IEEE.

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