Strategy decision model and framework of thermal power generation investment

The investment risk of thermal power plants in electricity market is analyzed according to the investor's subjective attitude towards uncertainty. Based on the Monte Carlo method, a novel decision supporting model of thermal power plants investment is proposed. In this model, evaluation method considering opportunity cost is introduced to guide optimal utilization of the capital. In addition, unit expansion planning and financial structure are set to be decision variables. Further more, game theory is employed to take into account the impact of the competitors' strategies. The algorithm of the investment decision model is presented in the next paper.