Providing a mathematical model to select governmental supporting scenarios for renewable energy plants

Abstract

In this study an extended model is proposed based on government subsidies to support the development of new energy power plants. Accordingly, the profit of this production unit is increased with the reduction of CO2 emissions. In addition, the results show that the plan to sell carbon dioxide emissions threshold helps in financial subsidies saving. Also, the increase in factors such as energy production capacity, electricity market price, CO2 emission threshold price and fluctuations in investment costs can lessen the amount of dedicated subsidies by the government. Also, the increase in parameters such as investment costs and fluctuations in electricity prices, and the price of CO2 emission thresholds leads to the dedication of more encouragement subsides.

Keywords

• renewable energy
• investment
• solar power plants
• subsidies
• emissions of carbon dioxide