Equilibrium modelling in developing energy systems

Investigation presented in our talk is based on model CANOE - Capacity And Network Optimization and Expansion. CANOE is a sparse high-dimensional linear programming model, which optimizes long term operation and expansion of energy power system network and generating capacities. Long term period is usually considered to be 10-20 years. It is assumed that the aggregate long term operation and expansion costs are equally distributed across all the years. The last of the long term period year is called the target year. Objective function of the CANOE is the total annualized costs TC of the target year. The value of TC is a sum of capacity costs, fuel (or operating) costs and network costs.
We extend CANOE to an equilibrium model which describes behavior of generating companies as behavior players in noncooperative game under network constraints looking for Nash equilibrium point. Description of elaborated methods and algorithm is given. Testing results on power energy system of central part of Russia are presented.