Recently, Korea electric power sector has been suffering financial difficulty in implementing generation expansion planning. This thesis suggests a way to smooth out annual cash outflow patterns.
Through the way that the heavy capital outlay of specified year causes the heavy cost of capital, we want to reduce the fluctuation of annual cash outflow.
A new investment planning formulation, taking a capital supply curve into account, is developed and discussed. This approach has been illustrated using some real data.
The optimum solution of new model shows more smoothed annual capital supply than that of WASP.
