Renewable energy investment study for electric power enterprise based on a time period with expected supply

Abstract

ABSTRACT This paper discusses an investment problem by establishing a cost minimization model for an electric power enterprise. Two potentially investable energy sources are suggested: renewable and new conventional energy, and expected supply level in a coming period is assumed. Features of integrated power market are considered: the merit order effect, carbon emissions intensity, intermittency of renewable energy, carbon tax, loan interest and generation and investment costs. The model is transformed to one-dimensional programming, so the Golden Section Algorithm is adopted. Simulation results are demonstrated in two cases with different supply levels, and they confirm the validity of the model.