Novel models and algorithms for generating unit location optimization

A comprehensive model of generating capacity expansion is studied in this paper in which load demand geographical distribution, power transmission line capacity and investment and operation costs are all taken into consideration. Focusing on the problem of generating unit location optimization, this paper simplifies the electrical network as a transportation network and optimizes generating unit location and electrical network expansion simultaneously from the view of economics. The computational results have shown that a reasonable plan of generating unit location can save much investment and operation cost of electrical network expansion. Such efficiency can be achieved only by integrating power transmission network expansion into generating capacity expansion. The fuel price, power transmission line capacity, the investment cost of generating unit and electrical network expansion and their operating costs are all important factors in the optimization of generating unit location.