Optimal economic incentive for renewable energy in Composite Expansion Planning

In this study, we evaluate economic incentive schemes for improving the effective utilization of renewable energy sources in composite expansion planning. The economic incentive schemes investigated are investment tax credits and feed in tariffs. The optimal expansion planning strategy is achieved by minimizing the investment cost for the renewable energy sources, minimizing the operational cost and emissions of the fossil fuel generators, as well as maximizing the incentive schemes while satisfying all the necessary constraints. The developed mathematical model is solved using CPLEX 12.6.3 solver implemented in Advanced Interactive Multidimensional Modelling System (AIMMS) and is tested on two practical case studies: IEEE 24-bus test system and real-world data of the Nigerian power system. Sensitivity analyses were investigated on the system performance of the proposed model and the results give an insight on the benefit of incentive schemes on effective utilization of renewable energy sources. Investment tax credit was discovered to be more effective when compared to feed-in tariff in composite expansion planning strategy by enhancing more utilization of renewable energy sources, improving voltage profile, as well as reducing fossil fuel emissions.