A NEW APPROACH TO EVALUATE GENERATION CAPACITY BIDS

Decision making on capacity addition has become highly complex as the power industry worldwide is undergoing regulatory changes. This paper argues the use of mathematical models to aid the decision makers to se lect generation capacity bids. A three-stage optimization scheme is de veloped to accurately estimate the benefits from a specific project. M ultiobjective framework to capture both quantitative as well as qualit ative information (through expert judgement) has been employed. The mo del can be used to estimate the marginal benefit from a project and ca lculate a composite index to rank them in order of their desirability. A case study for modified IEEE 30-bus test system illustrates the met hodological issues.