Power system Planning and Management
CHAPTER THREE-GENERATION EXPANSION PLANNING
Power system Planning and Management
Generation Expansion Planning (GEP) is the first crucial step
in long-term planning issues, after the load is properly
forecasted for a specified future period.
GEP is, in fact, the problem of determining when, what and
where the generation plants are required so that the loads
are adequately supplied for a foreseen future.
Problem Definition
GEP, is an optimization problem in which the aim is to
determine the new generation plants in terms of when to
Introduction be available, what type and capacity they should be and
where to allocate so that an objective function is optimized
and various constraints are met.
It may be of static type in which the solution is found only
for a specified stage (typically, year) or a dynamic type, in
which, the solution is found for several stages in a specified
period.
Power System Planning
Basic Renewable Energy
and Management
The objective function consists, generally, of;
Objective function =Capital costs +Operation costs
Salvage value is value of an
Capital costs is, mainly due to asset after depreciation is
• Investment costs (Cinv) complete
• Salvation value of investment costs (Csalv)
• Fuel inventory costs (Cfinv) while,
The cost of inventory includes
Operation costs, consists, mainly, of the cost of purchased merchandise
• Fuel costs (Cfuel)
• Non-fuel operation and maintenance costs (CO&M)
• Cost of energy not served (CENS)
Consider a case in which the aim is to determine the generation
capacity for year t in which the peak load is PLt.
If PGt denotes the available generating capacity in year t, it will be a
function of Kt,
Kt=Already committed units + New units additions-Units retired
Power System Planning
Basic Renewable Energy
and Management
Moreover, if Rest denotes the minimum reserve margin (in
%), the following inequality should be met:
Power System Planning
Basic Renewable Energy
and Management
The problem is to determine from a list of available options,
the number, type and capacity of each unit needed, in each
year of the study period.
In doing so, the total costs incurred should be minimized
while various constraints, such as meeting the load, should
be satisfied.
If the decision variable is denoted by Xit, representing the
Mathematical number of unit type i for year t, the Objective Functions
Development becomes;
Power System Planning
Basic Renewable Energy
and Management
The Fuel Cost,
Operation and
Maintenance
Cost
Power System Planning
Basic Renewable Energy
and Management
A generation unit may be tripped out in a rate given by its
Forced Outage Rate (FOR).
It represents the percentage of a time; the unit may be
unavailable due to unexpected outages.
Due to the FORs of the units and based on the demand and
The Cost of the available reserve, some portion of the energy demand
can not be served.
Energy not
The so called Energy Not Served (ENS) can not be made
Served zero, but should be minimized as a cost term. It is given by
Power System Planning
Basic Renewable Energy
and Management
Some constraints have to be observed during the
optimization process.
1. Technical Constraint
The generation capacity should be sufficient in meeting
the load while some uncertainties are involved and the
generation units may be, unexpectedly, tripped out at any
time. The following two constraints may, thus, be
considered s. •The first constraint
Constraints shows that the
generation capacity
should meet the load
plus a reserve.
• LOLP is a reliability
index normally used to
represent the system
robustness in response
to elements
contingencies.
Power System Planning
Basic Renewable Energy
and Management
2. Fuel Constraint
Fuel Constraint 3. Pollution Constraint
Power System Planning
Basic Renewable Energy
and Management
The Final Step will BE Identifying Which Optimization Principle
To Use.
a) Classical Techniques
b) Modern Techniques
Final step
Power System Planning
Basic Renewable Energy
and Management
Thank You
Power System Planning
Basic Renewable Energy
and Management
