Power generation planning: a survey from monopoly to competition

Abstract

During the last two decades electric power generation industry in many countries and regions around the world has undergone a significant transformation from being a centrally coordinated monopoly to a deregulated liberalized market. In the majority of those countries, competition has been introduced through the adoption of a competitive wholesale electricity spot market. Short-term efficiency of power generators under competitive environment has attracted considerable effort from researchers, while long-term investment performance has received less attention. In this context, the paper aims to serve as a comprehensive review basis for generation planning methods applied in a competitive electric power generation market. The traditional modeling techniques developed for generation expansion planning under monopoly are initially presented in an effort to assess the evolution of generation planning according to the evolution of the structure of the electric power market.