An Optimization Model for the Integration of Renewable Technologies in Power Generation Systems

Abstract

In view of the expanding Renewable Energy Sources (RES) generation worldwide and in particular in European Union, it is crucial for every country to consider the cost of integrating the necessary mixture of RESE technologies in their existing and future generation systems. In this work, an optimization model for the integration of RES electricity (RES-E) technologies in power generation systems is developed. The purpose of the optimization procedure is to assess the unavoidable increase in the cost of electricity of a g iven power generation system at different RES-E penetration levels. The optimization model developed uses a genetic algorithm (GA) technique for the calculation of both the additional cost of electricity due to the large penetration of RES-E technologies as well as the required RES-E levy in the electricity bills in order to fund this RES-E penetration. The above GA procedure enables the estimation of the level of the adequate (or eligible) feed-intariff (FiT) to be offered to future RES-E systems. The overall cost increase in the electricity sector for the promotion of RES-E technologies, for a given period, is analyzed taking into account factors, such as, the fuel avoidance cost, the carbon dioxide emissions avoidance cost, the conventional power system increased operation cost, etc. The applicability of the developed optimization model is applied to the small isolated power generation system of the island of Cyprus. The results indicated that in the case of 15% RES-E penetration by providing FiTs with a 10% internal rate of return the required level of RES-E levy in the electricity bills will be 0.53€c/kWh.