Generation Expansion Planning Considering Country-Level Social Cost of Carbon: Case Study of Kish Island

Abstract

This paper presents the impact of the country-level social cost of carbon (CSCC) and carbon allowance (CA) on generation expansion planning (GEP). Therefore, developing a mixed-integer programming model, the optimal power plant mix, total planning cost, and CO2 emission in different scenarios were investigated. The proposed model's essential point is to consider CSCC and CA as part of objective function while including CO2 constraint. The proposed model applied to the Kish island power system. The result shows without considering the CO2 constraint, CSCC, and CA, the penetration of renewable sources is 4%, due to the high penetration of natural gas open cycle (NGOC) units in the island. While incorporating these factors will increase renewable penetration to 11%, and reserve and emission constraints and CA will play an essential role than CSCC. The optimization program has been performed by GAMS software via the CPLEX solver.