Title: GENCOs multiperiod expansion model in a competitive electricity market

Authors: Daniel Hernández-González; Guillermo Gutiérrez-Alcaraz; S.N. Singh

Addresses: Departamento de Ingeniería en Mecatrónica y Sistemas Productivos, Universidad Tecnológica del Valle de Toluca, Carretera del Departamento del D.F. km 7.5, Ejido de Santa María Atarasquillo, Lerma, Mexico. ' Departamento de Ingeniería Eléctrica y Electrónica, Programa de Graduados e Investigación en Ingeniería Eléctrica, Instituto Tecnológico de Morelia, Av. Tecnológico 1500, Col. Lomas de Santiaguito 58120, Morelia Michoacán, Mexico. ' Department of Electrical Engineering, Indian Institute of Technology Kanpur, Kanpur-208016, India

Abstract: Over the past two decades, several countries have restructured their electricity industry by significantly reducing the government|s role in the ownership and management of energy sector. The generation sector was the first activity of the vertically integrated industry to be open for the competition and therefore, it presents the highest level of competitiveness and experience. In the new restructured electricity markets, the objective of each generation company (GENCO) is to maximise its total expected profit over a planning horizon while following the grid-code and system operators| directive for the safe operation of the power system. In the expansion plan of generating companies, the problem is to be reformulated incorporating several uncertainty factors such as demand growth, the volatility of market prices for electricity and fuels, delay in project completion, financial constraints, etc. In this paper, a long-term multi-period expansion model for a generation company operating in the deregulated electricity industry is presented. The effectiveness of the proposed approach is demonstrated on numerical examples.

Keywords: generation expansion planning; GEP; profit maximisation; uncertainty; electricity markets; modelling.

DOI: 10.1504/IJPEC.2012.044300

International Journal of Power and Energy Conversion, 2012 Vol.3 No.1/2, pp.77 - 93

Received: 25 Sep 2010
Accepted: 25 May 2011
Published online: 07 Aug 2014 *

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