ENHANCING INVESTMENT EFFICIENCY IN WIND FARM EXPANSION UNDER MARKET COMPETITION WITH CONSIDERATION OF UNCERTAINTY

Abstract

This paper examines the enhancement of investment efficiency in the expansion of existing wind power plants (WPP). The proposed approach addresses the challenges associated with diminishing incentive policies for renewable energy, while also aiming to mitigate the impact of wind speed variability and increase competitiveness as wind power penetrates the electricity market. To tackle these issues, the study optimizes key financial investment indicators and conducts a comparative analysis between wind farm expansion scenarios and conventional design approaches. In this optimization framework, a comprehensive design model is developed to enhance the efficiency of the transmission transformer system (TTS), accounting for the uncertainties in wind power generation. Furthermore, the integration of energy storage systems (ESS) is optimized to store surplus electricity with low utilization value, thereby maximizing the potential value of wind power output sold in the electricity market. Experimental results demonstrate the potential for a significant increase in the net present value, with the proposed scenario offering a 5.64-fold improvement, from 2.56 to 17.28 million euros. Additionally, the return on investment (ROI) is shown to increase 5.51 times, from 4.4% to 24.8%.