Decision model for cross-border electricity trade considering renewable energy sources

Abstract

Substantial benefits can be achieved from electricity trade through the interconnection of electricity networks of neighboring countries. In this study, we introduce a regional electricity exchange model to obtain an optimal power trade level between electrically-interconnected countries. In addition, producing clean electricity is one of the primary goals of many countries. Moreover, electricity production can be optimized in some areas using renewable sources and exported to regions with high demand. Thus, the power exchange using the proposed method and framework is investigated. Additionally, a decision model for planning an optimal configuration of hybrid wind/solar power systems and optimal electricity trade is presented. We analyze the economic, engineering, management, and policy issues to facilitate optimization of power generation and trade at the country level and quantify the gains from the increased trade. The proposed decision model is employed to plan electricity trade considering hybrid wind and solar energy resources. Furthermore, the effectiveness of reducing the variability of hourly power supply is evaluated by integrating the wind and solar power generation technologies. The main decision variables are the power trade value and number of installed wind turbines and solar systems. In case studies, the computational results using the proposed model yielded an optimal power trade between Iran and its neighboring countries, including Turkey, Turkmenistan, Afghanistan, Pakistan, Azerbaijan, Armenia, and Iraq. Consequently, Iran can export a maximum power capacity of 5,300 MW to its neighbors, where Iraq receives the highest share of 2,000 MW. When the electricity demand in Iran is high, Turkey, Turkmenistan, Azerbaijan, and Armenia can export 1,200, 1,000, 80, and 100 MW of electricity to Iran, respectively. Finally, various configurations of a hybrid wind/solar power generation system considering various cost and power supply variations are presented to partly supply the load requirements of the traded electricity. Consequently, Iran can supply 20% of the total demand of the electricity trade by wind and solar system installed capacities of 316.5 and 267 MW, respectively.