A multistage expansion planning problem is discussed concerning a gas turbine cogeneration plant for district heating and cooling using an optimization approach. An optimal sizing method for single-stage planning proposed by the authors is extended to this case. Equipment capacities and utility maximum demands at each expansion stage are determined so as to minimize the levelized annual total cost subject to increasing energy demands. A numerical study on a simple-cycle gas turbine cogeneration plant to be installed in a district development project clarifies the relationship between optimal expansion planning and energy demand trend, and shows the effectiveness of the proposed method.

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