The "Investment '85" Model of Electricite de France

The purpose of the "Investment 85" model is to shed light on the evolution, up to 1985, of the optimal structure of electricity production equipment in France and to outline its geographical distribution by main regions. The model fits into the general pattern of theoretical studies which contribute to the preparation of investment decisions by Electricite de France. It was solved in 1965 and represents the status then current in the application of mathematical programming methods to investment decision problems faced by Electricite de France. A detailed description of the model including the production and consumption features is provided. The various components of the total cost and the constraints are discussed. A treatment of the problem under uncertainty is given and the main results of the model are summarized. In addition the paper contains a historical review of the main stages in the development of the model and its solution.