TY - JOUR
T1 - SMART-Invest
T2 - a stochastic, dynamic planning for optimizing investments in wind, solar, and storage in the presence of fossil fuels. The case of the PJM electricity market
AU - Khazaei, Javad
AU - Powell, Warren Buckler
N1 - Publisher Copyright:
© 2017, Springer-Verlag Berlin Heidelberg.
PY - 2018/5/1
Y1 - 2018/5/1
N2 - In this paper, we present a stochastic dynamic planning model called SMART-Invest, which is capable of optimizing investment decisions in different electricity generation technologies. SMART-Invest consists of two layers: an optimization outer layer and an operational core layer. The operational model captures hourly variations of wind and solar over an entire year, with detailed modeling of day-ahead commitments, forecast uncertainties and ramping constraints. The outer layer requires optimizing an unknown, non-convex, non-smooth, and expensive-to-evaluate function. We present a stochastic search algorithm with an adaptive stepsize rule that can find the optimal investment decisions quickly and reliably. By properly capturing the marginal cost of investments in wind, solar and storage, we feel that SMART-Invest produces a more realistic picture of an optimal mix of wind, solar and storage, resulting in a tool that can provide more accurate guidance for policy makers.
AB - In this paper, we present a stochastic dynamic planning model called SMART-Invest, which is capable of optimizing investment decisions in different electricity generation technologies. SMART-Invest consists of two layers: an optimization outer layer and an operational core layer. The operational model captures hourly variations of wind and solar over an entire year, with detailed modeling of day-ahead commitments, forecast uncertainties and ramping constraints. The outer layer requires optimizing an unknown, non-convex, non-smooth, and expensive-to-evaluate function. We present a stochastic search algorithm with an adaptive stepsize rule that can find the optimal investment decisions quickly and reliably. By properly capturing the marginal cost of investments in wind, solar and storage, we feel that SMART-Invest produces a more realistic picture of an optimal mix of wind, solar and storage, resulting in a tool that can provide more accurate guidance for policy makers.
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U2 - 10.1007/s12667-016-0226-4
DO - 10.1007/s12667-016-0226-4
M3 - Article
AN - SCOPUS:85045768039
SN - 1868-3967
VL - 9
SP - 277
EP - 303
JO - Energy Systems
JF - Energy Systems
IS - 2
ER -