An Efficient Approach to the Optimal Static Geneeration Mix Problem

Considerable insight can be gained in electric utility generation expansion planning by solving the optimal static mix problem; that is, by determining the best set of generation technologies under fixed conditions. A simple approach to solving this problem is introduced here that is unique and has several useful properties. The fundamental idea is to treat the static problem as a dynamic program, whose stages are technologies (not time periods) and whose state is cumulative capacity. This approach is fast; it handles unit sizes and capacity constraints trivially; and it can be extended to handle general capacity and energy-related constraints and other complications.