HomeMindanao Journal of Science and Technologyvol. 8 no. 1 (2010)

A Methodology in Determining the Optimum Mix Generation Units

Rojien V. Morcilla | Nolan D. Caliao



Due to the introduction of restructured and deregulated electricity market worldwide, many generation units of different technologies compete for electricity demand. Thus, choosing the best mix of power generation to allocate such demands of energy becomes the challenge for the energy practitioners. In this paper the problem of choosing the best source of energy is simulated technically, economically, and financially to come-up with the best mix. The 15 combinations of energy sources were first subjected to technical and economic dispatch. Combinations that passed the technical and economic dispatch were then subjected to financial evaluation using the parameters such as net present value (NPV), internal rate of return (IRR), and payback period. To illustrate the method, 4 generation technologies (coal, biomass, wind, and solar) were simulated for a 200MW base load and an additional 500 MW demand in the next 15 years. Upon the test of the methodology in the generation technologies, a mix of coal and wind sources is the most optimal for the base load of 200 MW, while for the peak load of 700 MW in 15 years, the mix of coal, wind and biomass is the most optimal in both technical, economic, and financial evaluations.