A Game Theoretic Approach for Sustainable Power Systems Planning in Transition

Abstract

Intensified industrialization in developing countries has recently resulted in huge electric power demand growth; however, electricity generation in these countries is still heavily reliant on inefficient and traditional non-renewable technologies. In this paper, we develop an integrated game-theoretic model for effective power systems planning thorough balancing between supply and demand for electricity markets in transition. In this regard, a Case Study of Iran’s power system is used to illustrate the usefulness of the proposed planning approach and also to discuss its efficiency. Sectoral electricity demands of Iran`s power system as nonlinear functions are forecasted by applying times series approach while general information on economical, technological, political and electricity market conditions of sectors is also given. The brief look into the planning results shows that the proposed approach provides not only competitive conditions for renewable technologies expansion but also a robust one compared to the traditional (cost-based) approach.