Investigate the Impact of Maintenance and Partitioning on Optimizing Power Generation Investment

This paper presents a marginal cost-based power system production model that enhances computational efficiency and simulates electricity market operations through unit commitment and clustering methods. The model incorporates segmented marginal costs and preventive maintenance, employing market rules to determine the market clearing price. Using data from the Electric Reliability Council of Texas (ERCOT), the study analyzes the impact of these factors on unit revenues and investment decisions. Results indicate that segmented marginal cost representation and preventive maintenance significantly affect unit profitability and investment requirements. Additionally, the segmented model’s marginal pricing scheme more accurately reflects real market conditions, resulting in a more precise representation of the market clearing price.