Generation planning using Lagrangian relaxation and probabilistic production simulation

Generation planning has been extensively investigated and applied to practical power industry. This paper presents the generation planning model of Jiaotong Automatic System Planning Package (JASP) of Xi'an Jiaotong University, China. JASP decomposes the generation planning problem into a high-level power plant investment decision problem and a low-level operation planning problem and solves them by a decomposition-coordination method. Lagrangian Relaxation is used to solve the power plant investment decision problem and probabilistic production simulation is used to solve the operation planning problem. The generation planning model of JASP can be easily extended to the context of market liberalization. Simulation results show that JASP can not only overcome the 'curse of dimensionality' but also find economical and technically sound generation planning scheme.