A multi-regional model for power generation expansion planning

Restructuring energy industries in developing countries has started with dividing the vertically integrated national systems into regional companies. Analysis of multidimensional interactions of these companies especially in long-term is a complex task that necessitates development of analytical tools. In the present paper, we have focused on the problem of GEP in the restructured energy supply system. A new energy supply model based on Cournot equilibrium is presented which could help to analyze longterm expansion planning after restructuring. The formulation of the model in a competitive environment is changed from traditional cost-minimization program to several profit-maximization programs with regional and inter-regional constraints, which leads to a LCP formulation and it can be solved by the well-known Lemke's algorithm. The electricity-supply system of Iran is then used as a case study to analyze the perspective of generation technologies in a 20-year time horizon. Analysis of the results in comparison with the traditional traditional models shows that changes in the structure of electricity supply system of Iran provide more opportunities for innovative and renewable technologies in the electricity market.