Modeling Renewable Penetration Using a Network Economic Model

This paper evaluates the accuracy of a network economic modeling approach in designing energy systems having renewable and conventional generators. The network approach models the system as a network of processes such as demands, generators, markets, and resources. The model reaches a solution by exchanging prices and quantity information between the nodes of the system. This formulation is very flexible and takes very little time to build and modify models. This paper reports an experiment designing a system with photovoltaic and base and peak fossil generators. The level of PV penetration as a function of its price and the capacities of the fossil generators were determined using the network approach and using an exact, analytic approach. It is found that the two methods agree very closely in terms of the optimal capacities and are nearly identical in terms of annual system costs.