Effect of economic parameters on power generation expansion planning

Sevilgen S., Erdem H. H., Cetin B., Akkaya A. V., Dagdas A.

ENERGY CONVERSION AND MANAGEMENT, vol.46, pp.1780-1789, 2005 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 46
  • Publication Date: 2005
  • Doi Number: 10.1016/j.enconman.2004.09.006
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.1780-1789
  • Keywords: power generation, economic parameters, capacity expansion
  • Yıldız Technical University Affiliated: Yes


The increasing consumption of electricity within time forces countries to build additional power plants. Because of technical and economic differences of the additional power plants, economic methodologies are used to determine the best technology for the additional capacity. The annual levelized cost method is used for this purpose, and the technology giving the minimum value for the additional load range is chosen. However, the economic parameters such as interest rate, construction escalation, fuel escalation, maintenance escalation and discount factor can affect the annual levelized. cost considerably and change the economic range of the plants. Determining the values of the economical parameters in the future is very difficult, especially in developing countries. For this reason, the analysis of the changing rates of the mentioned values is of great importance for the planners of the additional capacity.