AN OPTIMISED DESIGN FOR DISTRIBUTED GENERATION AT A REGIONAL LEVEL IN SAUDI ARABIA

Abstract

This study presents a mixed integer linear programming (MILP) model for the optimal design for a distributed generation system that satisfied the electricity load at the regional level for Saudi Arabia. The design focuses on solar and wind energy as the candidate components in the system design. The objective function to be minimized contains the investment costs of candidate technologies and the annual operating and maintenance costs. Additional equations are included to ensure validity of the model while examining two possible scenarios corresponding to the Kingdom’s renewable energy short-term and long-term targets. The same scenarios were examined with the application of an environmental cost in the form of a carbon tax to analyse the possibility of imposed environmental policies on energy production using fossil fuels in Saudi Arabia and the effects of which on renewable energy penetration in the energy mix.