Power Generation Planning (PGP2)
Power Generation Planning (PGP2)
Problem: select power generators that minimize the total cost of supplying enough electricity to satisfy regional demand.
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Stage 1: (must decide in advance) how much capacity to acquire for each type of generator. (e.g., gas, coal, nuclear)
Stage 2: (can postpone until the demand is seen) how much electricity to generate, once the demand is observed.
Demand is random for planning purposes.
Load Curve (Demand)
Symbol Meaning
Capacity for generator type (kw)
Stage 1 decision
Annualized capital cost ($/kw)
Budget ($)
Minimum capacity requirement (kw)
Operating cost ($/kw-hr)
Load duration (hour)
kw of demand segment served using generator type (kw)
Stage 2 decision
Demand during load (random, kw)
Budget constraint
Minimum capacity
Operating cost
Cannot exceed capacity
Must meet demand
All-in-one
Symbol Meaning
Capacity for generator type (kw)
Stage 1 decision
Annualized capital cost ($/kw)
Budget ($)
Minimum capacity requirement (kw)
Operating cost ($/kw-hr)
Load duration (hour)
kw of demand segment served using generator type (kw)
Stage 2 decision
Demand during load (random, kw)
* Index sets:
Data and Scenarios
The random vector is defined by marginal distributions.
Assume independence.
Each possible combination of will become one scenario.
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