Benefit-based expansion cost allocation for large scale remote renewable power integration into the Australian grid

Hasan, Kazi Nazmul, Saha, Tapan Kumar, Chattopadhyay, Deb and Eghbal, Mehdi (2014) Benefit-based expansion cost allocation for large scale remote renewable power integration into the Australian grid. Applied Energy, 113 836-847. doi:10.1016/j.apenergy.2013.08.031


Author Hasan, Kazi Nazmul
Saha, Tapan Kumar
Chattopadhyay, Deb
Eghbal, Mehdi
Title Benefit-based expansion cost allocation for large scale remote renewable power integration into the Australian grid
Journal name Applied Energy   Check publisher's open access policy
ISSN 0306-2619
1872-9118
Publication date 2014-01-01
Year available 2013
Sub-type Article (original research)
DOI 10.1016/j.apenergy.2013.08.031
Open Access Status Not yet assessed
Volume 113
Start page 836
End page 847
Total pages 12
Place of publication Kidlington, Oxford, United Kingdom
Publisher Pergamon
Language eng
Abstract Climate change policies in different jurisdictions enhance the integration of large scale remote renewable power generation into the grid, where the remoteness of the location-constrained generation zone and subsequent high transmission investment appear as a potential barrier. Consequently the justification of investment and equitable cost allocation becomes contentious. This research firstly presents a state-of-the-art review of policy changes in different jurisdictions in this aspect. Then transmission connection and usage cost allocation are presented to address these challenges accordingly, highlighting the implementation of semi-shallow connection cost allocation policy. Afterwards, the benefit-based allocation of network usage cost is reimbursed through Shapley Value approach. Finally, the investigation of the net market benefit and cost allocation are presented by simulating four large scale remote renewable transmission projects to be connected to the Australian Queensland network. This study aims to enhance regulatory policies and associated planning frameworks to be more efficient and justifiable for renewable power integration paradigm. (C) 2013 Elsevier Ltd. All rights reserved.
Formatted abstract
Highlights
• Shapley Value approach offers a fair and equitable cost allocation.
• A case study of the Australian Queensland network is presented.
• Cost allocation is contentious for remote renewable power transmission.
• Regulatory policies and planning frameworks need to be updated.

Climate change policies in different jurisdictions enhance the integration of large scale remote renewable power generation into the grid, where the remoteness of the location-constrained generation zone and subsequent high transmission investment appear as a potential barrier. Consequently the justification of investment and equitable cost allocation becomes contentious. This research firstly presents a state-of-the-art review of policy changes in different jurisdictions in this aspect. Then transmission connection and usage cost allocation are presented to address these challenges accordingly, highlighting the implementation of semi-shallow connection cost allocation policy. Afterwards, the benefit-based allocation of network usage cost is reimbursed through Shapley Value approach. Finally, the investigation of the net market benefit and cost allocation are presented by simulating four large scale remote renewable transmission projects to be connected to the Australian Queensland network. This study aims to enhance regulatory policies and associated planning frameworks to be more efficient and justifiable for renewable power integration paradigm.
Keyword Expansion cost allocation
Net market benefit
Shapley value
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online 5 September 2013

 
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Created: Mon, 25 Nov 2013, 23:43:04 EST by Kazi Hasan on behalf of School of Mechanical and Mining Engineering