Integration of Demand and Supply Side Management strategies in Generation Expansion Planning

Abstract

Electric utilities across the globe concerned with environmental issues associated with conventional fossil fuel based plants are exploring more into the possibility of introducing Renewable Energy Sources (RES) type of plants into the system as an alternative. A realistic power system planning needs integration of both Demand Side Management (DSM) and Supply Side Management (SSM) that which involve simultaneous consideration of both quantitative and qualitative issues like plant mix, costs and reliability of power supply. In this paper, an attempt is made to study the economic and environmental influence of RES introduction into an existing peak deficit power system, in the state of Tamil Nadu (TN), India, using the Long-Range Energy Alternative Planning system (LEAP) an energy-economic model, integrating both DSM and SSM strategies. The Generation Expansion Planning (GEP) study is carried out for TN power system for the period of thirty years from 2014 to 2043. The Base System Analyses (BSA) carried out was indicative of differential impact of RES levels and Reserve Margin on the system performance. Based on the BSA, an extended three dimensional sensitivity analysis was performed to get a comprehensive picture of the impact of variations in RES and Reserve Margin planned on system performance factors such as, Total Installed Capacity (TIC), Net Present Value (NPV) of investments, reliability of the system (ENS-Energy Not Served), one hundred year global warming potential (CO2E) and Flexibility Index (FI) for every DSM and SSM strategy planned. While TIC and NPV were more sensitive to changes in Reserve Margin (RM) than RES penetrations levels, the CO2E and FI were more sensitive to RES penetration levels. The ENS was sensitive to both RM and RES levels. The results also indicate that simultaneous implementation of DSM and SSM strategies could result in the reduction of as much as 10% in TIC, 18% in NPV, 23% in CO2E, 18% in ENS and 20% improvement in FI value.