A comprehensive model of generating capacity expansion is studied in the paper in which the geographical distribution load demand, the capacity of a power transmission line, its investment and operation cost 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, capacity of power transmission line, the
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