The Replication of Multi-year Solutions Using Single Period Models of Electric Utility Capacity Expansion Planning

Abstract

Abstract When fuel prices are projected to change over the planning horizon, a standard approach is to formulate a multiperiod capacity expansion model for a utility. However, multiperiod models are considerably larger and more cumbersome than a single period model. An alternative strategy is to develop a single period model whose optimal solution replicates the first period part of the multiperiod optimal solution. This allows the model builder to trade-off a more aggregate multiperiod model for a more detailed single period, rolling horizon model without increasing computational complexity. When and how this can be accomplished in a model of electric utilities is the subject of this paper.