Profit-based resource planning

Abstract

Summary form only given. Recent developments in the electric power utility industry restructuring provide flexible options for generation resource planning in a competitive electricity market is discussed. This presentation provides a model to analyze and remedy the existing conflicts for generation resource planning in restructured power systems. The objective of the generation resource planning model is to maximize the total expected profit of individual GENCOs over a planning horizon. The proposed algorithm will examine possible sites and markets for new generators, various unit types and capacities (such as gas, hydro, oil, coal, combined cycle), timing for the addition of new units, steps for the closure of old generators, generation scheduling of potential units, and strategies for the timely returns on investment.