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

•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 diff...

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Bibliographic Details
Published in:Applied energy 2014-01, Vol.113, p.836-847
Main Authors: Hasan, Kazi Nazmul, Saha, Tapan Kumar, Chattopadhyay, Deb, Eghbal, Mehdi
Format: Article
Language:English
Subjects:
Allocations
Applied sciences
Economic data
Electric energy
Energy
Energy economics
Exact sciences and technology
Expansion cost allocation
Financing
General, economic and professional studies
Investment
Joints
Jurisdiction
Marketing
Natural energy
Net market benefit
Networks
Policies
Shapley Value
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Summary:•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.
ISSN:0306-2619
1872-9118
DOI:10.1016/j.apenergy.2013.08.031