Long-term optimal generation expansion planing considering CO2 reduction policies and mechanisms

Abstract

In a deregulated power system, a well-designed market mechanism could promote the optimal distribution of resources within the system. As one of the major sources of CO2 emissions, power industry can be seriously impacted by carbon emission-related policies and regulations. This paper considers three widely promoted emission policies, using a long-term power system planning model to obtain the optimal generation expansion plan for twenty years. By analysing and comparing system investment schemes under different emission-related mechanisms, the processes of how these policies influence generation investment are revealed. The effectiveness of these policies is compared to determine the optimal carbon emission mechanism.