A Dynamic Approach to Generation Expansion Planning

Abstract
This paper describes a new approach to optimized generation planning based on the development of large numbers of expansion patterns comprising all possible combinations of selected units. This approach yields markedly different results from the step-by-step minimum cost for each year method, and assures that the optimum pattern at least has been examined. Not only is the lowest total cost pattern identified, but the relationship of any particular pattern to the optimum is readily apparent. The sensitivity of the results to possible variation in investment costs, escalation factors, fuel prices, and system load factors easily can be determined.

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