Generation Capacity Expansion Planning in Deregulated Electricity ...

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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 increasing the bus active power loads by 5 times, for the base

year. There are three existing 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 investors are usually exposed to various risk parameters arising from market competition [1]. In

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

the investment cost recovery period for new capacity investment is considered to be 5 years. That

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

4.1.4 Assumptions Made for Modeling

• 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)

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