Generation Power Capacity Expansion Economic-Environmental Planning under Uncertainty: Case Study of Kerman Province

Yahya Hatami (), Zeinolabedin Sadeghi (), Seyed Abdolmajid Jalaei () and Amir Abdollahi ()
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Yahya Hatami: PhD. Candidate in Economics, Shahid Bahonar University of Kerman
Zeinolabedin Sadeghi: Associate Professor of Economics, Shahid Bahonar University of Kerman
Seyed Abdolmajid Jalaei: Professor of Economics, Shahid Bahonar University of Kerman
Amir Abdollahi: Associate Professor of Electrical Engineering, Shahid Bahonar University of Kerman

Quarterly Journal of Applied Theories of Economics, 2019, vol. 6, issue 1, 215-240

Abstract: Generation expansion planning (GEP) includes determining the optimal strategy to plan the construction of new generation plants while satisfying technical and economic constraints. The purpose of this study is to examine a multi-Objective power generation capacity expansion planning model for studying changes in production decisions and carbon dioxide contamination under uncertainty of power demand and supply. Uncertainty of demand and power generation capacity factor (supply uncertainty) were expressed as a fuzzy set, and a fuzzy multi-objective nonlinear model was used for a case study of Kerman power generation capacity expansion planning system for a 12-year period. The result of the study showed that in order to meet demand and to ensure the economic (minimizing production costs) and environmental (minimizing the costs of carbon dioxide pollution) objectives in the same time under the uncertainty of demand and generation capacity factor, the capacity of wind and water technology along with coal fuel should be respectively expanded by almost. However, as far as only economic goals are concerned, the plan will include the increase of coal fuel electricity production capacity. Furthermore, to meet environmental goal, capacity expansion of renewable wind, water and photovoltaic power technologies are respectively expected in the plan. The difference in results reveals the importance of integrated and comprehensive planning for the power generation capacity expansion planning

Keywords: Planning of generation power capacity; Uncertainty; Carbon dioxide pollution; Multi-objective fuzzy programming model (search for similar items in EconPapers)
JEL-codes: C61 D81 Q31 Q53 (search for similar items in EconPapers)
Date: 2019
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