Market-driven sizing and siting of generation investment

The analysis of new electricity generation initiatives in power systems within unbundling framework should account for the competitiveness of marginal cost in energy market dispatch and for the location of proper plant sizes. In this paper, a method for the generation investment analysis is proposed, involving market-based power production levels over yearly horizon with hourly time steps. Furthermore load flow analysis is carried out in order to assess most suitable connection bus. An investment profitability is therefore evaluated. The method is applied to the case of Sicily, accounting for discrete sizes and production cost for candidate technology.