Generation Capacity Expansion Planning in Deregulated Electricity ...

uwspace.uwaterloo.ca

Generation Capacity Expansion Planning in Deregulated Electricity ...

IRR, %

33.40%

33.30%

33.20%

33.10%

33.00%

32.90%

32.80%

32.70%

32.60%

75% 80% 85% 90% 95% 100% 105% 110% 115% 120% 125%

Budget, % of base case

Fig. 6 Effect of change in budget on optimal value of IRR

In Fig. 7 it is shown that with increase in budget availability, the total revenue and total cost of the

firm increases linearly but the rate of increase of total revenue is higher than that of total cost, which

indicates a progressively increasing profit of the firm.

Total Revenue/Cost, $

1.0E+09

9.0E+08

8.0E+08

7.0E+08

6.0E+08

5.0E+08

4.0E+08

75% 80% 85% 90% 95% 100% 105% 110% 115% 120% 125%

Budget, % of base case

TOTAL REVENUE TOTAL COST

Fig. 7 Effect of change in budget on total revenue and total cost

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