Strategy decision algorithm and sensitivity analysis of thermal power generation investment

A heuristic algorithm based on decomposition and coordination principle is developed in this part for the investment decision model presented in part I. This algorithm decreases the dimension of the problem so that computational burden is reduced greatly. Case study shows that the algorithm can get a satisfactory optimization result in a few iterations. Further more, the impact of the competitors' strategies on the investor's decision is analyzed with game theory. Finally, sensitivity analysis indicates that financial structure as well as unit expansion planning affect the profit of thermal power station project remarkably, and so it is essential to set them as decision variables.