Optimal design of power systems under constraints of reliability and cost

This paper considers two major problems of power system design optimization. The first problem is to maximize the reliability of the power system under the constraint of cost, while the second problem is to minimize the cost subject to the reliability constraint. In both problems, additional constraints are imposed on the problem, such as constraints of normal operational and maintenance requirements, environmental and safety conditions. Applying known optimal control techniques, the system has been simulated by mathematical models in the form of several successive n-stage sequential decision problems. The solution is obtained using dynamic programming and optimality principles. Digital computer programs have been developed to facilitate the numerical solution and reliability evaluation. Application of the method has been illustrated on several examples, representing major components of large power systems.