A Model-Based DSS for Portfolio Optimization of Electricity Generation Company in Turkey

This study proposes a Decision Support System (DSS) for the daily operational planning and management of a natural gas-fired generation (NGFG) company in Turkey. The proposed system optimizes profitability based on natural gas procurement and electricity trading strategies. The DSS uses two separate optimization models to determine the daily power generation schedule and the natural gas consumption amount. The first model is deterministic, and it is formulated as a mixed integer programming (MIP) model with fixed electricity pricing. The second is a fuzzy programming (FP) model with unprecise electricity price information. The DSS determines various operational variables while optimizing the portfolio (i.e., profit maximization). The list of decision variables includes hourly electricity generation schedule, electricity traded, and procurement plan for natural gas. Visual outputs of DSS facilitate better operational management of the NGFG company with improved decision-making and enhanced system monitoring. Some results obtained by DSS are reported on randomly generated problems.