Research on the Model of Integrated Resource Planning Based on Externality Costs of Renewable Energy

Abstract

Renewable energy generation technologies have lower externality costs but higher private costs than fossil fuel-based generation. As a result, the choice of renewable in the future generation mix could be affected by the industrys future market-oriented structure because market objectives based on private value judgments may conflict with social policy objectives toward better environmental quality. A multi-period linear programming-based model (Resource Planning Model) is used to characterize todays electricity supply market in China. This paper incorporated the externality costs and outage costs with the long-term resource planning model in an open market. Also, the model has the objectives of maximizing the total social value. Meanwhile, the discount rate is used in the model to capture the dynamic change of different costs. A set of integrated models have been developed with some limitation, such as generation limitation, capacity limitation, annual electricity limitation, demand and demand state limitation. At last, applying the model for the resource planning of Yunnan Province in planning period shows that the decrease of the share of fossil fuel generation and the increase of the renewable energy generation which evaluates the reliability and validity of the model.