A MADM framework for generation expansion planning in small electricity firms

Multi attribute decision making (MADM) methods have been widely used for a variety of decision-making problems in electric utility planning. With introduction of competition in electricity industry, generation planning shifts from vertically integrated monopoly utilities to decentralized competitive firms. In general, these firms can be divided into price taker small firms and price maker large firms. In this paper, we propose a MADM framework for generation expansion in the price taker small firms which employs a linear additive utility function for ranking the strategic planning alternatives of the firm on the base of some selected attributes. A simple example is presented to illustrate the application of the method.