Generation Capacity Expansion Planning in Deregulated Electricity ...

Optimal IRR, %

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

5.E+05 1.E+06 5.E+06 1.E+07 5.E+07 1.E+08

Emission Cap, tons/year

Fig. 21 Effect of emission cap on the optimal value of IRR with MILP framework

Fig. 22 shows the net profit of the firm with change **in** the emission cap. It can be seen that up to an

emission cap of 5.0E+7 tons/year, the firm’s profit **in**creases but after that it atta**in**s a steady state

level is unaffected by change **in** emission cap.

Present Worth of Total Profit, $

4.E+08

4.E+08

3.E+08

3.E+08

2.E+08

2.E+08

1.E+08

5.E+07

0.E+00

5.E+05 1.E+06 5.E+06 1.E+07 5.E+07 1.E+08

Emission Cap, tons/year

Fig. 22 Effect of emission cap on firm’s total profit with MILP framework

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