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

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  • Hasan, Kazi Nazmul
  • Saha, Tapan Kumar
  • Chattopadhyay, Deb
  • Eghbal, Mehdi

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.

Suggested Citation

  • Hasan, Kazi Nazmul & Saha, Tapan Kumar & Chattopadhyay, Deb & Eghbal, Mehdi, 2014. "Benefit-based expansion cost allocation for large scale remote renewable power integration into the Australian grid," Applied Energy, Elsevier, vol. 113(C), pages 836-847.
    • Handle: RePEc:eee:appene:v:113:y:2014:i:c:p:836-847
    DOI: 10.1016/j.apenergy.2013.08.031
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