The Research On Generation Investment Decision Considering Capacity Compensating

Power industry reform has made the decision of generation investment occur a great change. On the one hand, the word-wide power industry restructuring has introduced more uncertain factors for generation investment decision-making, and each player first maximizes his profit as he make the investment decision. On the other, the challenges that electric power industry reform is facing is how to maintain sufficient generation capacity to guarantee the adequacy of system capacity. Therefore, capacity investment is no more the result of a traditional electricity planning but a usual market analysis, it is very important for us to discuss power generation capacity investment decision in the context of guaranting the adequacy of system capacity.Firstly, this paper summarizes the new research and development on the decision of power plant investment, introduces general optimization model of generation investment decision, main factors affecting generation investment in sensitivity analysis are also presented. And then, it introduces capacity compensating method of two-step pricing detailedly. The relationship between investment decision and capacity compensating method of two-step pricing is also discussed. Then, Nash-Cournot model is developed in generation investment in order to maximize the profit. The model has taken the capacity compensating into consideration and is solved by an advanced Levenberg-Marquardt algorithm based on the nonlinear complementary approach. By combining this model, the concert account step and the flow chart are presented.Finally, a simulation companies is analyzed. At first, it compiles program by Matlab6.5, the results of five oligarchs model show that incentive of investment from generation utilities can be achieved by increasing capacity compensating, hence guaranting the adequacy of system capacity. Furthermore, the inspiration of the two-step pricing is more effective to the unit that has low investment and high operation costs. The results also show that capacity compensating changes the structure of power system. And then, it presents an enhanced method in view of unreasonable design. Finally, a numerical example illustrates the quantitative impact of initial installed capacity and uncertain level of demand on the decision of capacity expansion.