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Handbook of CO₂ in Power Systems pp 205–242Cite as

Impact of GHG Emission Reduction on Power Generation Expansion Planning

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Part of the book series: Energy Systems ((ENERGY))

Abstract

In this work the impact of greenhouse gas (GHG) emission reduction on Power Generation Expansion Planning (PGEP) is investigated. An overview of several PGEP models, which also consider environmental constraints and GHG emission limits, is presented. After a short introduction on regulations about GHG emission Cap and Trade System in Europe and in the United States and a survey on state of the art PGEP, a new approach to assess the effects of fuel and electric energy price volatility on long term generation planning by a GENCO (GENeration COmpany) is proposed. The objective function, to be maximized, consists of the total revenue obtained by the GENCO over a certain time horizon into the future. A general model is developed to find both present and future generation mixes of a given GENCO and the Lagrangian Relaxation method is used to solve the large scale mixed integer problem. However, its results will be not really suitable to define a generation planning strategy, unless the uncertainties of costs, prices and construction times are considered. For this reason, a Monte Carlo simulation procedure is implemented including an expansion planning computation at each step. In the model renewable resources, like off-shore and on-shore wind, biomass, mini hydro, geothermal, solar thermodynamic and photovoltaic power plants, are also taken into account. The results are presented with reference to an hypothetical GENCO, by setting all the scenario variables on the basis of available historical data.

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Authors and Affiliations

  1. Department of Electrical Engineering, University of Pavia, via Ferrata 1, 27100, Pavia, Italy

    F. Careri, C. Genesi, P. Marannino, M. Montagna, S. Rossi & I. Siviero

Authors
  1. F. Careri
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  2. C. Genesi
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  3. P. Marannino
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  4. M. Montagna
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  5. S. Rossi
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  6. I. Siviero
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Corresponding author

Correspondence to C. Genesi .

Editor information

Editors and Affiliations

  1. , Department of Industrial & Management Sy, West Virginia University, Evansdale Drive 401, Morgantown, 26506-6070, West Virginia, USA

    Qipeng P. Zheng

  2. , Division of Economics and Business, Colorado School of Mines, 15th Street 816, Golden, 80401, Colorado, USA

    Steffen Rebennack

  3. , Department of Industrial & Systems Engin, University of Florida, Weil Hall 401, Gainesville, 32611, Florida, USA

    Panos M. Pardalos

  4. Rio Praia de Botafogo, Centro Empresarial, -A-Botafogo 2281701, Rio de Janeiro, 22250-040, Rio de Janeiro, Brazil

    Mario V. F. Pereira

  5. Research & Development, EnerCoRD - Energy Consulting,, Plastira Street 4, Athens, 171 21, Greece

    Niko A. Iliadis

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© 2012 Springer-Verlag Berlin Heidelberg

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Careri, F., Genesi, C., Marannino, P., Montagna, M., Rossi, S., Siviero, I. (2012). Impact of GHG Emission Reduction on Power Generation Expansion Planning. In: Zheng, Q., Rebennack, S., Pardalos, P., Pereira, M., Iliadis, N. (eds) Handbook of CO₂ in Power Systems. Energy Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-27431-2_10

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  • DOI: https://doi.org/10.1007/978-3-642-27431-2_10

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-27430-5

  • Online ISBN: 978-3-642-27431-2

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