A Simulated Annealing Approach to Evaluate Long Term Marginal Costs and Investment Decisions

In this paper we describe a multiobjective formulation for the long term planning of distribution networks considering a number of important features. The model admits fuzzy representations for loads and evaluates nodal long term marginal prices. It integrates a number of criteria related to investment, operational and reliability costs, risk index measuring the ability to accommodate load uncertainties and the remuneration collected using long term marginal prices. After using a Simulated Annealing approach to identify efficient expansion plans, it is finally conducted a decision analysis in order to select the most adequate plan. At a final section, we illustrate the formulation with a case study based on a Portuguese distribution network.