Private investment in power and deviations from the least cost expansion plan

Established least cost electricity generation expansion planning philosophy is now coming under serious pressure because of the worldwide restructuring of the electricity supply industry. This restructuring usually includes private investment in power projects. Despite the importance of the long-term optimal strategy, the `next´ least cost project may, sometimes, be unattractive to private investors for a various reasons, but power system planners may be constrained, by policy or financial pressures, to accept compromises. The paper examines this problem, develops techniques for assessing the impact of such deviations, examines affects on prices, and suggests trade-off methods for resolving economic and tariff related conflicts of interest