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Sustainable portfolio re-equilibrium on wind-solar-hydro system: An integrated optimization with combined meta-heuristic
Journal article   Peer reviewed

Sustainable portfolio re-equilibrium on wind-solar-hydro system: An integrated optimization with combined meta-heuristic

Lu Gan, Dirong Xu, Xiuyun Chen, Pengyan Jiang, Benjamin Lev and Zongmin Li
Energy & environment (Essex, England), p958305
16 Mar 2022

Abstract

Due to the intermittency of renewable energies, their acceptances in electricity market are lower than fossil energies. Therefore, it is necessary to overcome the development resistance through portfolio re-equilibrium. Balance supply and demand in markets involving different stakeholders to optimize return on investment. Compared with the past, this paper proposes an integrated optimization with combined meta-heuristic for wind-solar-hydro system. It investigates to coordinate the interactions of power stations and power grid with their internal conflicts respectively. Specifically, the investment profit, the investment volume and the investment risk are considered as the optimized objectives for wind-solar-hydro system. However, power grid takes operation efficiency, surplus electricity and carbon emissions into account to be the optimal objectives. They are composed to establish a bi-level programming model. Moreover, an improved particle swarm optimization is utilized to deal with the problem-orientated model with NP-hard complexity. Finally, to verify the feasibility of the proposed model, a case of wind-solar-hydro system from Panzhihua located in southwest China is conducted. The results showed that portfolio re-equilibrium strategies had the potential to push forward sustainable development. Secondly, generating capacity was positively affected by the initial investment volume. However, the investment profit did not absolutely rise with the grow of investment risk. Thirdly, profit-oriented strategies were conducive to carbon emissions reduction. But risk-oriented strategies can reduce surplus electricity and increase the stability of electricity purchase schemes.

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UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#7 Affordable and Clean Energy

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Environmental Studies
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