EnCompass can determine not only the best way to utilize resources, but also which technologies should be added in the future, or existing resources that should be converted or retired.
This is accomplished through Capital Projects, which specify not only the operating life and constraints for adding new resources, but also the capital expenditures and project financing parameters, which includes assumptions on debt, taxes, return on equity, property taxes, insurance, and unregulated vs. rate base financing.
Each balancing authority modeled may have a reserve margin requirement set which is satisfied based on the firm capacity of existing resources and new capital projects.
In addition to the normal transmission constraints, each zone may have net capacity import and/or export limits set. This could potentially force capacity to be shifted into transmission-constrained regions, similar to the New York ISO Local Capacity Requirement (LCR) and the PJM Locational Deliverability Area (LDA).
The selection of new capital projects and existing resource retirements is optimized using Mixed Integer Programming.
The optimization may span multiple years, or be broken up into yearly overlapping segments. For producing faster results on larger problems, EnCompass offers the option of partial project additions, which can be rounded up for new capacity or down for retirements.
Multiple least-cost plans, each one unique up to a specified year within the simulation period, may be generated, ranked, and selected for further analysis.
Using the structured scenario approach in EnCompass, the results from a capital project optimization may be used in multiple child scenarios, where a more detailed simulation with the new capacity mix can be evaluated.
Contact Anchor Power Solutions for a Custom Demonstration of EnCompass Software