A nonlinear hierarchical approach for incorporating solar generation units in electric utility capacity expansion plans

Abstract This paper represents a first step toward incorporating solar generation units in electric utility capacity planning and expansion planning problems. Two static, single period, models are formulated for determining an optimal mix of equipments to meet an anticipated demand, either in the absence of existing equipments (capacity planning model) or in the presence of existing equipments (capacity expansion planning model). These problems form the kernel for more complicated scenario formulations. The problems are demonstrated to be convex programs, and efficient, convergent hierarchical algorithms are developed to solve them. Computations on a problem using real operating data derived from Department of Energy forecasts is provided.