Generation Expansion Planning Considering Country-Level Social Cost of Carbon: Case Study of Kish Island

This paper presents the impact of the country-level social cost of carbon (CSCC) and carbon allowance (CA) on generation expansion planning (GEP). Therefore, developing a mixed-integer programming model, the optimal power plant mix, total planning cost, and CO₂ emission in different scenarios were investigated. The proposed model's essential point is to consider CSCC and CA as part of objective function while including CO₂ constraint. The proposed model applied to the Kish island power system. The result shows without considering the CO₂ constraint, CSCC, and CA, the penetration of renewable sources is 4%, due to the high penetration of natural gas open cycle (NGOC) units in the island. While incorporating these factors will increase renewable penetration to 11%, and reserve and emission constraints and CA will play an essential role than CSCC. The optimization program has been performed by GAMS software via the CPLEX solver.