Integrated Electricity Planning Comprise Renewable Energy and Feed-In Tariff

Problem statement: Mitigation of global warming and energy crisis has called upon the need of an efficient tool for electricity planning. This study thus presents an electricity planning tool that incorporates RE with Feed in-Tariff (FiT) for various sources of Renewable Energy (RE) to minimize grid-connected electricity generation cost as well as to satisfy nominal electricity demand and CO₂ emission reduction target. Approach: In order to perform these tasks, a general Mixed Integer Linear Programming (MILP) model was developed and implemented in General Algebraic Modeling System (GAMS). The RE options considered including landfill gas, municipal solid waste, palm oil residue and hydro power. While the model presents a general approach for electricity planning, Iskandar Malaysia is applied as a case study in this research. Results: By considering the cost, FiT, availability of the Renewable Energy Source (RES) and limit of RE fund for FiT remuneration in Malaysia. The optimization result indicates that Iskandar Malaysia can satisfy the set target of 40% carbon emission reduction by 2015 by implementing biomass RE. Conclusion: It’s revealed that a total of 875 MW of RE is required from Biomass Bubbling Fluidized Bed (BBFB) using various palm oil biomass fuel (mesofiber-215 MW, Empty Fruit Bunch (EFB)-424 MW and kernel-236 MW). However, this increases the Cost Of Electricity (COE) by 69-6.5% cents/kWh.