Generation Capacity Expansion Planning in Deregulated Electricity ...

4.1.2 Modified IEEE 30-Bus System

As mentioned earlier, a modified IEEE 30-Bus system data is used for the studies presented **in** this

chapter. The system is modified by **in**creas**in**g the bus active power loads by 5 times, for the base

year. There are three exist**in**g generators at bus-1, bus-2 and bus-8 as shown **in** Fig. 25. The expected

demand blocks (Base, Intermediate and Peak) and technical parameters for this modified system are

given **in** Appendix A.

4.1.3 Risk Averse Plan

New **in**vestors are usually exposed to various risk parameters aris**in**g from market competition [1]. In

order to reduce the risk, the 15-year plan budget of the **in**vestor is segregated as 5-year budgets and

the **in**vestment cost recovery period for new capacity **in**vestment is considered to be 5 years. That

means a new capacity plan has to recover its total **in**vestment costs **in** 5 years.

4.1.4 Assumptions Made for Model**in**g

• Assumptions are same as previous chapter work

4.2 Mathematical Model

4.2.1 Objective Function

The objective function is the maximization of the present worth of the total profit of the firm over the

plan horizon and the present worth of the salvage value that the firm will receive at the end of plan

period. This is given **in** (19) below:

J

=

∑∑∑

i b k

( i,

b,

k)

k ( 1+

a)

Ap

+

∑∑∑

i k m

( i,

k,

m)

P ( 1+

a)

Svl

J Objective function of the firm, $

45

(19)