A thesis submitted in partial fulfillment of the requirement for the degree of Master of Engineering

Thesis (M.Eng.) - Asian Institute of Technology, 1994

This study considers the optimal capacity expansion planning process of electric utilities through Integrated Resource Planning (IRP). An IRP model has been developed which captures the change of system load due to implementation of the Demand-Side Management programs more accurately than existing models. Simultaneous integration technique has been adopted in the model to integrate the supply- and demand-side resources. Consideration of environmental cost of power generation, imports and exports of power among utilities, transmission and distribution losses are some of the important features of the model. A private sector utility of India, Calcutta Electric Supply Corporation Limited (CESC), is evaluated by this model. Four scenarios have been analyzed in this study and for each scenarios, Integrated as well as traditional supply-side planning schedule have been obtained. Beside optimal resource mix and optimal load despatching schedule, supply costs, revenue requirements, rate of return, environmental impacts, etc. have been determined to compare IRP with supply only planning. The results not only confirm the validity of the developed model but also emphasize the requirement of IRP to developing countries' electric utilities. Allocation of marginal costs to different times of a day is yet another aspect of this study. Though marginal cost based pricing system is rarely used in developing countries due to societal reasons, the effects of this type of efficient pricing should be critically examined and compared with the existing pricing system.