Evaluating the Consequences of Investment in Distributed Power Production

The paper presents a model able to evaluate consequences of investments in hydropower systems, as well as in distributed power production. In the model both the hydraulic system, as well as local transmission grid are included. The subjects focuses on relative parameters of spot generating price such as: the uncertainty about any nuclear plants to be retired within the foreseeable future, the probability of an increased capacity for exchange undersea cables, and increasing thermal generation capacity by using new natural gas fired plants. This model mainly is designed to evaluate the value of either peak capacity or distributed production. This paper also describes a model for performing static analyses, with ability to handle market prices with price variations within the span of hours, and performing analyzes of distributed generation. A model of this type could be of great value to potential investors and to authorities