Interactive economic multi-objective optimization in electric power market

Traditional objective of decision makers in electric power market is based on optimization of one objective function. This objective may be investment on transmission or generation expansion or production cost of whole system. This approach is the most appropriate method under a regulated market. However under a deregulated market with several non-cooperative competitors, single objective optimization method will not represent behavior of the market. As a results decision making process in electric power market has become a complex problem. Decision makers need to consider all aspects of their investment including minimization of production cost, preservation of environment, economic development and customer satisfaction. In the other hand the uncertainties with load growth, fuel price and regulatory changes has made the decision making problem inevitably complex, dynamic and challenging. This paper proposes a multi-objective model to help decision makers choose among the objectives while considering inherent uncertainties of the competitive market.