A dynamic model for generation expansion planning

Selection of optimal size and optimal timing of addition of (new) generators are the two basic problems in generation expansion planning. In this paper we have developed a simple mathematical model for generation expansion planning which consists of an economic indicator (cost functional) and a dynamic model relating future expansion with the existing capacity and the retirement characteristics of generating units available on the market. For illustration, the proposed model has been applied to a hypothetical example of a utility and gives encouraging results.