| This thesis addresses the difficult problem of generation expansion planning that employs the most effective technologies in today's changing electric energy industry. The electrical energy industry, in both the industrialized world and in developing countries, is experiencing transformation in a number of different ways. This transformation is driven by major technological breakthroughs (such as the influx of unconventional smaller-scale resources), by industry restructuring, changing environmental objectives, and the ultimate threat of resource scarcity.;This thesis proposes a possible planning framework in support of sustainable technologies where sustainability is viewed as a mix of multiple attributes ranging from reliability and environmental impact to short- and long-term efficiency. The idea of centralized peak-load pricing, which accounts for the tradeoffs between cumulative operational effects and the cost of new investments, is the key concept in support of long-term planning in the changing industry. To start with, an interactive planning framework for generation expansion is posed as a distributed decision-making model. In order to reconcile the distributed sub-objectives of different decision makers with system-wide sustainability objectives, a new concept of distributed interactive peak load pricing is proposed. To be able to make the right decisions, the decision makers must have sufficient information about the estimated long-term electricity prices. The sub-objectives of power plant owners and load-serving entities are profit maximization. Optimized long-term expansion plans based on predicted electricity prices are communicated to the system-wide planning authority as long-run bids. The long-term expansion bids are cleared by the coordinating planner so that the system-wide long-term performance criteria are satisfied. The interactions between generation owners and the coordinating planning authority are repeated annually. We view the proposed interactive planning framework as a necessary paradigm for planning in the changing industry where choice must be reconciled with societal public objectives. |
