Generation Capacity Expansion Planning in Deregulated Electricity ...

Generation Capacity Expansion Planning in Deregulated Electricity ...

• Although in the literature, generation planning using discrete unit sizes has been considered,

but no analysis is reported on how the IRR would be affected when such discontinuous

variables are present. Furthermore, how the IRR so obtained, would compare with that

obtained in the continuous case. This thesis presented a detailed and new perspective on this

subject. It is observed from the studies that the optimal plan of the firm with discrete unit

sizes yields a higher IRR as compared to that with continuous unit sizes. It is observed that if

electricity prices increase then the firm is expected to invest more even if budget is limited.

• A contribution of the thesis is the novel development of the investor’s planning framework

considering transmission network flows, and location specific resource constraints. Such a

model is important from the view point of determining the optimal investments and also to

understand the impact of fuel prices and other parameters on line overloads.

5.3 Scope for Future Work

This work can be further extended to examine various other pertaining issues such as-

• Consideration of the volatility of different market parameters such as fuel prices and the

electricity market price. In the present work sensitive analysis has been carried out to

examine their effects, but a more comprehensive analysis is needed in the future.

• The uncertainty associated with price and demand variations in the long-term may also be

considered in detail, and appropriate stochastic modeling framework need to be developed to

examine their effects.

• There is a need to coordinate the individual investor’s plans and arrive at a system’s level

expansion plan. This work can be extended to formulate such a coordination scheme for the

central planning authority so as to determine the overall optimal plan for the system after

taking into account the plan submissions from multiple independent investors.

• There is a need to develop a coordinated plan for the generation and the transmission system

in the long-term. Such a coordinated plan must take into account the individual investors’

plans as determined from their respective planning models, of the type presented in this

thesis, and integrate them in a comprehensive transmission expansion planning model.


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