Generation Expansion Planning of Distributed Generation Sources in an Energy Market Based on Monte-Carlo Simulation and Game Theory

Abstract

This article proposes a new comprehensive solution for generation expansion planning (GEP) of renewables in a deregulated environment based on developing distributed generations (DGs) and renewable sources. In this presented solution, generation companies (GENCOs) will make their decisions according to their technical/economical expenses through a dynamic game in a competitive energy market. The GENCOs manage their capitals and investments by economical indices. The independent system operator (ISO) presents various types of incentives in a new progressive method to support renewables and DGs. Existence of effective incentives/penalties by the ISO leads to gain the best applicable strategy for the GEP issue. In order to ensure the possessing reliability of system in a satisfactory level, the research has used energy not supplied through the Monte-Carlo simulation technique. This article can be helpful for the countries which desire to schedule a comprehensive program for renewable/DG sources development and emission reduction.

Keywords:

• distributed generation
• gynamic game theory
• energy market
• generation expansion planning
• internal rate of return
• Monte Carlo simulation
• reliability
• renewable sources