Sustainable electricity power planning involves trade-offs between multiple goals. The
different attributes of each technology or generation portfolio in terms of the attainment of
society goals must be assessed and included in the planning models. Optimization models
always played an important role for supporting complex planning decision making, from
which the particular case of the electricity industry stands out. This study addresses energy
policy and strategic central decisions, presenting a long-term model for electricity planning.
A MILP problem is described, which addresses a mixed hydro-thermal-wind power system
close to the Portuguese electricity case. Through scenario analysis, the expected impacts in
terms of costs, CO2 emissions and external energy dependence are evaluated for a 10 years
planning period. Based on the assumed cost information and on the imposed technical restrictions,
the obtained results put in evidence the importance of coal power plants combined
with new hydro power investments for minimum cost scenarios.This work was financed by: the QREN – Operational Programme for Competitiveness Factors, the European Union – European Regional Development Fund and National Funds- Portuguese Foundation for Science and Technology, under Project FCOMP-01-0124-FEDER-011377 and Project Pest-OE/EME/UI0252/2011