TY - GEN
T1 - A market-based analysis on the generation expansion planning strategies
AU - Kim, Jin Ho
AU - Park, Jong Bae
AU - Park, Jong Keun
AU - Joo, Sung Kwan
PY - 2005
Y1 - 2005
N2 - The demise of the native franchise markets and emergence of competitive markets for electricity generation service is changing the way that electricity is and will be priced and is making increasingly difficult for market participants to appraise the prospects for the future electricity market. As a result, conventional generation expansion planning (GEP) problems determining the least-cost capacity addition plan that meets forecasted demand within pre-specified reliability criteria over a planning horizon (typically 10 to 20 years) is becoming no more valid in these competitive market environments. Therefore, it is necessary to develop a new methodology for generation investment, which is applicable to changed business environments and is able to address the post-privatization situation where individual generation firms seek to maximize their return on investment against market prices. In this paper, we present a new formulation of generation expansion planning problems for privatized generation firms, which is applicable in competitive electric power industries. Based on the game-theoretic approach for the evaluation of future incomes of individual generation firms, we propose a new mathematical formulation and efficient solution scheme considering changed electric power industry environments.
AB - The demise of the native franchise markets and emergence of competitive markets for electricity generation service is changing the way that electricity is and will be priced and is making increasingly difficult for market participants to appraise the prospects for the future electricity market. As a result, conventional generation expansion planning (GEP) problems determining the least-cost capacity addition plan that meets forecasted demand within pre-specified reliability criteria over a planning horizon (typically 10 to 20 years) is becoming no more valid in these competitive market environments. Therefore, it is necessary to develop a new methodology for generation investment, which is applicable to changed business environments and is able to address the post-privatization situation where individual generation firms seek to maximize their return on investment against market prices. In this paper, we present a new formulation of generation expansion planning problems for privatized generation firms, which is applicable in competitive electric power industries. Based on the game-theoretic approach for the evaluation of future incomes of individual generation firms, we propose a new mathematical formulation and efficient solution scheme considering changed electric power industry environments.
KW - Competitive electricity market
KW - Game theory
KW - Generation expansion planning strategies
KW - Privatized generation firms
UR - http://www.scopus.com/inward/record.url?scp=33847376385&partnerID=8YFLogxK
U2 - 10.1109/ISAP.2005.1599307
DO - 10.1109/ISAP.2005.1599307
M3 - Conference contribution
AN - SCOPUS:33847376385
SN - 1599750287
SN - 9781599750286
T3 - Proceedings of the 13th International Conference on Intelligent Systems Application to Power Systems, ISAP'05
SP - 458
EP - 463
BT - Proceedings of the 13th International Conference on Intelligent Systems Application to Power Systems, ISAP'05
T2 - 13th International Conference on Intelligent Systems Application to Power Systems, ISAP'05
Y2 - 6 November 2005 through 10 November 2005
ER -