Effects of relative price changes on the optimal development of the electricity sector: The case of Turkey

Abstract

ABSTRACT This thesis investigates the effects of changes in the relative prices of resources (namely, hydro, lignite, oil and nuclear sources) and primary factors (i.e., foreign exchange and domestic capital) on the optimal development of the Turkish Electricity sector over the 1982-2002 period. The study uses a multi-period linear programming model, which combines the analysis of investment choices with the treatment of plant operating schedules in a global framework. The numerical implementation of the model includes 20 alternative runs on the computer, which are designed in such away as to explore the nature of shifts in the structure of optimal investment programs under varying assumptions and ground rules of the analysis. IV