Generation Capacity Expansion Planning in Deregulated Electricity ...

2.3 Case Study

2.3.1 System Data

The mathematical model discussed **in** the previous section is a l**in**ear programm**in**g model which is

programmed **in** the GAMS [19] environment. As discussed earlier, this model is designed from the

perspective of an **in**vestor. In the base case the optimal value of IRR is determ**in**ed while the objective

function is maximization of the present value of total profits and salvage.

Data used **in** the base case scenario are given **in** Table I, which are adapted from [20]. It should be

mentioned here that the data used here, although be**in**g of 1990 values, are generally with**in** the close

range of the currently reported figures **in** [21]. It should be noted that some of the data specific to the

technologies considered **in** this work, such as cost data, have a certa**in** range and would vary

depend**in**g on the time, location and market.

TABLE I TECHNICAL PARAMETERS OF GENERATION TECHNOLOGIES CONSIDERED

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Gas-fired Coal-Fired Comb**in**e-cycle

Fuel price, $/MBtu 6 2.8 6

Heat rate, Btu/kWh 11000 9900 7800

Capital cost, $/kW 350 1400 700

Fixed O&M cost, $/kW 1 23 12

Variable O&M, $/MWh 5 5 3

Price escalation of all costs related to plant, % 2 2 2

Depreciation rate, % 3 3 3

Levelized FCR, % 27 27 27

Present worth rate, % 10.5

Fuel price escalation, % 3 2 3

**Plann ing** period, years 25