Review of models for integrating renewable energy in the generation expansion planning

Abstract

The Generation Expansion Planning (GEP) stands as one as one of the most discussed topics within the academia and decision makers in the energy sector, especially related to meeting deep emission reduction targets. Every country, aiming at decarbonizing its economy, focuses on the application of policies that could enhance the penetration of Renewable Energy Sources (RES) in its power capacity mix. GEP is a complex task, combining techno-economic, financial, spatial and environmental characteristics. Several models are developed to model GEP, applying different methodological approaches. The underlying theory is very important as it might inherit bias in the resulted outcomes. The debate on the appropriateness of each methodology is increased, especially as projected outlooks deviate from reality. The paper aims to provide a review of the models employed to integrate RES in the GEP. The paper classifies models in three generic categories: optimisation models, general/partial equilibrium models and alternative models, not adopting the optimum integration of RES in the GEP. It provides insights on the characteristics, advantages and disadvantages of the theoretical approaches implemented, as well on their suitability for different aspects of the problem, contributing in the better understanding on the expected outcomes of each methodology.