Investigating the Optimal Investment Strategies in Power Generation Sector Affected by Green Policies Considering the Wake Effect

Introducing the green energy policies being implemented in different countries all over the world for emission reduction and promotion of renewable energy sources (RES), the present paper investigates the effects of the most popular energy policies on RES diffusion, in particular wind turbines, environmental damages cost derived from power generation sector, and generation company profit, in the context of generation expansion planning (GEP) problem. To achieve this aim, first, by incorporation of Feed-In-Tariff (FIT) and Quota Obligation (with tradable green certificate) policies into the GEP problem, a comprehensive model with additional constraints to simulate the policies is presented while to improve the accuracy of the model and achieve more realistic simulation framework, the wake effect of the candidate wind farms is considered. As a mixed-integer non-linear programming problem, the resulting model is implemented in the General Algebraic Modeling System (GAMS) package and solve in several scenarios using the BARON solver. Then, according to the obtained optimized expansion strategies, the impacts of the policies on aforementioned issues are evaluated. The obtained results show the effectiveness of the policies on RES promotion as well as emission reduction. Furthermore, analyses reveal that simulation of the wake effect of wind turbines can result in more realistic and optimal expansion strategies