Risk constrained operation planning model for a genco in Availability Based Tariff regime in India

This paper develops a risk constrained expected profit maximization model for a generating station operating under Availability Based Tariff (ABT) regime in India. The decision strategy of the generator is to optimize the availability target trajectory for a yearly time span in appropriate time intervals. The model considers stochastic behaviour of generating units´ outage, Unscheduled Interchange (UI) and load Schedule and the other deterministic constraints occurring in the yearly time horizon. Stochastic programming framework is applied to estimate the optimal annual availability target for expected annual profit maximization. The profit verses risk trade off is achieved by constraining the objective function with Conditional Value at Risk (CVaR). A numerical example of a generating station is illustrated to show the revenue maximization strategy by this optimization.