Multicriteria Environmental Assessment: A Practical Guide (Power Electronics & Power Systems)

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Certain problems and methods of generation [ 1 , 6 , 11 - 13 ] and electrical network [ 6 , 14 - 16 ] expansion planning in the market environment are being studied with particular attention paid to game approaches [ 1 , 11 , 14 ]. The mechanisms for providing investment in electric power facilities and effective development of electric power industry, electric power systems and companies are being considered in terms of increased risks [ 2 , 17 - 19 ].

Liberalization and deregulation processes in electric power industry were activated in the s and s. The main stimuli for this activation were the powerful arguments for the inefficiency of electric power industry as a public sector of the economy, its occasional inability to ensure stable rates of economic growth, anonymity of property, state protectionism, etc. The ideas of liberalism, monetarism, deregulation of the economy including the electric power industry , privatization of state property, freedom from state intervention in trade and other economic activities became quite popular.

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Thus, it was not by accident that radical and liberal reforms were often accompanied by a considerable relaxation of state control aimed at fast activation of self-regulatory market mechanisms, which were supposed to stimulate economic growth and restructuring of electric power industry [ 20 ]. This approach was mainly based on the theoretical conclusions of the classical school of economics that the market balance is achieved owing to the law of demand and supply by means of flexible market pricing under the conditions of perfect competition; prices reflect individual preferences and fluctuations according to the changes in demand and supply; resources are distributed according to the relative price level in the market, and if this level depends on fluctuations in demand and supply, the absolute price level is determined by the amount of money; when the balance is disturbed, the system strives to restore it, that is why any attempts to interfere in the operation of market mechanisms can only aggravate the situation.

There was an opinion concerning the problems of electric power industry development that the market mechanisms would give the necessary economic signals for the expansion of both generating capacities and electric networks. In Russia, such ideas were especially popular in the early and mids. A failure to recognize the significance of the problems of electric power industry development in the economically developed countries was explained by the fact that the intensive energy saving virtually stopped electricity consumption growth; at the same time large backups were formed at generating facilities and in the electric network; as a result, the problems of power shortage and electric network constraints did not manifest themselves for a long time, and surplus power made it possible to create competitive electricity markets.

During this period, Russia experienced a considerable decrease in electricity consumption, which led to a significant rise in the amount of unloaded generating capacities. The experience of market transformations in electric power industry in most of the countries showed that the initial excessive optimism about the efficiency of purely market forces in the operation and, particularly, expansion of electric power systems proved unjustified. In essence, the specialists acknowledge now that the most rational method for efficient operation and expansion of electric power systems is a combination of market mechanisms and state regulation.

It is worth emphasizing that the determination of such a rational combination is not an easy task and its performance is country-specific because of specific features of economy and electric power industry, conditions of their operation and development. Moreover, by the late s, the backup generating capacities had started to decrease considerably in many countries, since it turned out to be unprofitable for the generating companies to maintain extra capacities. The electricity market functioning revealed the limitations on the transfer capability of the electric network often at the points, where such limitations had not manifested themselves before the so-called congestion problem.

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All this triggered the research into the methods of expansion planning of generating capacities, and particularly electric networks, on a new market basis. The above mentioned new paradigm of a multilateral process of making decisions and creating the mechanisms for their implementation under the conditions of uncertainty, multicriteriality, and multiplicity of interests is topical and has to be comprehensively studied disregarding the future organization structure of the electric power industry, principles of electricity market functioning, state control in electric power industry, etc.

Below, the paper presents a systematic analysis of the latest developments in the expansion planning of electric power industry, electric power systems and companies in the market environment. The main principles of the so-called holistic power system expansion planning are given. The analysis finishes with some generalizations. Currently the mathematical models and methods for expansion planning of electric power industry, electric power systems and companies develop in the following conventional directions:.

As regards the transformation of methodological principles of expansion planning in electric power industry, electric power systems and companies, one of the main postulates is to recognize that it is very important to consider the corresponding problems as multi-criteria problems. The notion of the so-called social welfare is used, i.

In some cases, the criterion of social welfare is written as a sum of criteria of individual parties without any weighting coefficients [ 24 ]. The method of concessions is also used [ 28 ].

Consideration is given to the approaches based on multi-criteria utility function [ 29 - 31 ] the authors of [ 29 ] suggest a formal procedure for the determination of weighting coefficients in a multi-criteria utility function and game approaches [ 1 , 11 , 14 , 32 - 34 ]. Another important aspect of modern approaches to the planning of electric power industry, electric power systems and power companies under the conditions of liberalization and deregulation is connected to greatly increasing uncertainty of the expansion planning factors and a growing number of factors forming this uncertainty, as compared to the conditions of the centralized electric power industry.

In terms of methodology, there is a short-term uncertainty and a long-term uncertainty. The short-term uncertainty for instance, fluctuations in electricity prices in prospect as against the forecast, load variations at system nodes as against the forecast, etc. The long-term uncertainty is represented by scenarios for instance, the scenarios of electricity consumption, fuel or equipment prices, etc.

The fuzzy sets and fuzzy logic are used [ 35 , 39 , 40 ]. In many cases, uncertainty is associated with risk [ 5 , 29 , 41 ]. Considering the uncertainty of electric power industry development, it is recognized that the ideology of approaches to the expansion planning of electric power systems and companies should be transformed from optimization to forecast and simulation, and from planning to a development strategy [ 12 , 34 ]. As compared to the previous conditions, the sense and content of mathematical models used for forecasts and simulation expand since the technological models for electric power system expansion planning are supplemented with financial ones [ 3 , 42 ] and gain new functions including assessment of power supply reliability, consideration of demand-side management DSM , and other capabilities [ 4 , 38 , 43 , 44 ].

The use of such powerful means as the geographic information systems is also considered [ 45 ]. Some authors do not regard the generation expansion planning problem as pressing and assume that the market mechanisms should give the necessary economic signals to the investors to invest in the construction of new power plants. To this end, a lot of different approaches are suggested, one of which is the so-called Stratum Electricity Market SEM. According to this approach, the electricity market structure is considered hierarchically in time, including the spot hourly , monthly, yearly and long-term markets.

The long-term market makes it possible to arrange auctions and attract investment in the construction of power plants [ 46 ]. A similar idea was also formulated in [ 47 ]. Also, consideration is given to the capacity markets in addition to electricity markets that create long-term economic signals for investors for the expansion of power plants [ 48 ].

An important problem is the coordination of generation expansion, since every generating company and every independent investor that explore the possibility of investing in the construction of power plants, have their own interests, which should be reconciled taking into account the general system requirements.

An independent system operator is considered as the coordinator [ 13 , 49 , 50 ], and social requirements the main of which is the reliability of power supply to consumers — as the system requirements to be checked by the operator. In other cases, the function of the generation expansion coordinator is performed by the state [ 47 , 51 - 53 ] which is often identical to the previous case, where the system operator is the state property , and the problem can be viewed as a hierarchical game problem [ 52 ].

When the power plant expansion is regulated, the coordination can be performed by the companies. In this case, the problem is formulated as a cooperative game [ 1 , 54 , 55 ].

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This promising approach needs further analysis and elaboration. For a single flight fuel-optimal versus climate-optimized trajectory solution is evaluated using prototypic ECFs and identifying mitigation potential. Abstract Comprehensive assessment of the environmental aspects of flight movements is of increasing interest to the aviation sector as a potential input for developing sustainable aviation strategies that consider climate impact, air quality and noise issues simultaneously. Electric power systems are objectively viewed as complex integral facilities with a complex, often hierarchical structure and quite strong ties with economic, social, and environmental systems. This ebook makes use of real-life examples to research strategies for venture the duty of constructing an Environmental impression evaluation EIA of a undertaking. In the course of electric power system expansion, individual interests of stakeholders are most tangible in restructured and liberalized electric power industry.

Some authors consider the state generation expansion planning as a means of protection against market risks [ 47 , 51 , 53 ]. In a more general case, it is most rational to combine market mechanisms of power plant expansion with the system of state and corporate generation expansion planning, which reduces investment risks. In this case a special fund is established to hedge independent investors against financial risks and construct power plants to avoid generating capacity shortage [ 47 , 56 , 57 ].

Since the functions performed by the electric network represent monopolistic activities, and are regulated by the state, the issues of electric network expansion planning are paid considerably more attention than the generation expansion planning. The main results can be formulated as follows [ 24 , 25 , 58 - 69 ]:.

The authorities regulators are not directly considered in the discussed plan as stakeholders. The investors are taken into account indirectly and in a simplified way — through the investment component of the expansion costs of the transmission electric network. One of the approaches is to determine marginal nodal or zonal prices, using not only the current prices, but also the investment component in the electric network expansion.

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Another approach is connected to the long-term forecasting of marginal prices in the wholesale market [65]. An alternative solution is the stratum electricity market structure [ 59 ], which forms the long-term market of investment in the transmission electric network. That is why the corresponding suggestions should be tailored to the concrete conditions. Generally speaking, it is recommended that the generation expansion and expansion of the electric network should be coordinated by solving the corresponding system problem [ 36 , 49 , 70 ].

Different approaches are on this way.

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In [ 71 ] the planning problem is modeled from the viewpoint of the transmission planner, as a four-level optimization problem. The interrelated problems A GenCos bidding strategies , B market strategy , and C generation expansion are solved by linking agent-based and search-based algorithms. Finally, problem D transmission planning is linked to the first three problems through evaluating a predefined set of planning criteria. When using such a framework, system planners need to be careful that the analytical models being used to represent GenCos capture reasonable behaviors.

Solutions found from tools such as the presented in [ 71 ] should not be applied blindly in actual planning exercises, but rather help planners gain more insight to expected behavior.

The authors of [ 72 ] develop a three-level model of transmission and generation expansion planning in a deregulated power market environment. In the second level, multiple decentralized GenCos make their own capacity expansion decisions while anticipating a wholesale electricity market equilibrium in the third level. The collection of bi-level games in the lower two levels forms an Equilibrium Problem with Equilibrium Constraints EPEC that can be approached by either the diagonalization method DM or a complementarity problem CP reformulation.

The paper proposes a hybrid iterative solution algorithm that combines a CP reformulation of the three-level problem and DM solutions of the EPEC sub-problem. The paper [ 73 ] suggests a pessimistic three-level equilibrium model for a market-based expansion of both transmission and generation. The lower third level models the market outcomes; the intermediate second level models the equilibrium in generation capacity expansion by taking into account the outcomes of the market equilibrium at the third level. Note that from the first issue of , MDPI journals use article numbers instead of page numbers.

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