An equilibrium analysis of renewable energy policy impacts on power system planning

Abstract

Renewable energy developments have significantly influenced to the power system planning. In particular, in the last decade, renewable energy sources are considerably increased due to the supportive renewable energy policy worldwide. In this paper, an economic model is proposed to analyze the electricity market equilibrium under the impacts of renewable energy policy. In addition, the model reveals the interaction between renewable energy policy and short-run market behaviors and interaction between renewable energy policy and long-run market equilibrium. An example is conducted on IEEE 30-bus system with Renewable Portfolio Standard (RPS) to illustrate the proposed equilibrium analysis.