Risk based multi-objective optimal fulfillment of Renewable Purchase Obligation

It is known that renewable energy generation is associated with risk of uncertainty and market trading is associated with risk of price volatility. The mandatory Renewable Purchase Obligation (RPO) in India, exposes the Load Serving Entities (LSE) to these risks, in addition to the expenditure associated with it. This paper formulates the optimal fulfillment of RPO as a multi-objective problem. The optimal decision of meeting RPO is obtained by minimizing the two objectives - cost and risk. The two risks considered are the variability of wind power generation and volatility in the Renewable Energy Certificate (REC) price. These are modeled through fuzzy membership functions. Further, a best compromise solution is obtained through the fuzzy minmax approach.