saucis Sakarya University Journal of Computer and Information Sciences 2636-8129 Sakarya University 10.35377/saucis.01.03.468380 Computer Software Bilgisayar Yazılımı The Impact of Capital Subsidy Incentive on Renewable Energy Deployment in Long-Term Power Generation Expansion Planning https://orcid.org/0000-0001-6436-6368 Özcan Mustafa Şişli Technical School, Electricity and Electronics Department Yıldırım Mehmet Kocaeli University, Technology Faculty, Information Systems Engineering Department 12 18 2018 1 3 1 19 10 08 2018 10 31 2018 Copyright © 2018, Sakarya University Journal of Computer and Information Sciences 2018 Sakarya University Journal of Computer and Information Sciences

Capital investment cost is the major obstacle tothe increasing share of electricity from renewable energy sources (RES-E). Therefore,RES-E incentive mechanisms are incorporated into markets to compensatecost-related barriers and to increase RES-E deployment rate. In thisstudy, the impactof direct capital investment subsidy on RES-E in generation expansion planning (GEP)has been analyzed and deployment rates of renewable power plants have been defined.The effect of currentsubsidy mechanisms on the installed power capacity of various sources has alsobeen analyzed and policy recommendations have been put forth in the light ofthe characteristics of Turkey’s current subsidization mechanism and its outcomes.Genetic algorithm was appliedto solve the GEP problem. The share of non-hydro renewable power plants for futureadditions in overall installedpower was determined as 9.45% without the proposed incentive, while it was estimatedto rise to 13.65% when it was promoted by direct capital investment subsidy of50%. The deployment rates of renewable power plants are expected to grow as theimported coal share in total installed power is expected to decline afterapplying the proposed subsidy.

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