A method for generation adequacy planning in multi-area power systems using dynamic programming and global decomposition

This paper proposes an optimization procedure of generation placement for long-term generation adequacy planning in multi-area power systems. The desired location is expected to yield a favorable trade off between system reliability and cost. The concept of global decomposition is used for system reliability evaluation component. The prospective generation locations are pre-selected but the magnitude of generation located in each area is determined by an optimization procedure. The method exploits the problem structure of global decomposition to simplify and formulate it as a dynamic programming problem. The method is illustrated by application to a 3-area power system