A Dynamic Programming Model for the Project-Sequencing Problem

For many capacity expansion problems, distinct capacity types must be specified to identify capacity at different locations or capacities with different costs and operating characteristics. In this study, a project-sequencing model is developed that allows operating costs to influence the timing decisions for project establishment. Under certain conditions, the power expansion formulation is derived that may be solved through the dynamic programming approach, and its first application to planning in electric power systems is selected to investigate an optimal policy and to show the impact of requiring system to service more than one type of demand. Several sample testing results indicate that in some systems the efficiency of the large nuclear plants is higher than that of smell ones that it may overcome the effects of the drop in reliability.