Cost/benefit analysis of generation investments considering system constraints

A new methodology for cost/benefit analysis of generation investments considering system constraints has been developed. The methodology proposes to address the uncertainties in generator outages, transmission failures and other system constraints. A sequential Monte Carlo simulation is used to simulate the random component states while subsequent generator commitment and/or load curtailment in each simulated system states is calculated through application of OPF. Network behaviour in state is then used to calculate the energy generation, revenue, amount of load curtailment, frequency, and duration of load curtailment for each plant. The proposed methodology has been applied on the IEEE RTS system and numerically validated by considering the comparative viability of different generators types and their locations. The realistic electricity prices, generator data are taken from Queensland power system of Australia to modify the RTS data. Finally, the significance of the financial benefits of extra efficiency and reliability of generators is also investigated.