Generation cost analysis for power plants under the deregulated environment

This paper focuses on the problem of the generation cost decision-making that includes its structure, technologies and strategies. Apportioning the annual capacity cost into the generating hours shows that the different modes of units have the different capacity costs, which will determine the process of operation and cost decision-making. The average capacity cost shows the influence of unit generation MW variation, which is illustrated with the possible strategies of a monopolizing plant under the deregulated environment. As to the fuel cost, the input-output curve is corrected with the real time data during the operation period, which improves the accuracy.