A gas fired electric power generation plant, similar to the one that was planned for the Suroît area, is relatively inexpensive to build, but operating costs may rise very quickly. The question is: what is the value of the electric power that one can draw from it?
Two very important elements are included in the model which is essentially that of Tseng and Barz (Operations Research 2002), namely the randomness of prices of electricity and gas, and plant operational constraints. The latter significantly complicate the analysis because de facto, they couple the impacts of decisions from one decision period to the next.lis
The solution methodology suggested by Tseng and Barz is highly simulation intensive. We propose a promising alternative approach.