Abstract
In this paper, we present an R&D planning model which is focused on the optimal funding portfolio among baseload, peakload, load management, and load forecasting research for the electric utility industry. We assume that the R&D benefits are contingent upon utilities' capacity expansion plans, which in turn, are affected by previous R&D outcomes. The level of future electricity demand and future regulatory environment are considered two key uncertainties which will have major impact on utilities' capacity expansion strategies and R&D funding decisions. Important insights and useful decision guidelines are drawn from the sensitivity results.
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