We present a multi-feature stochastic dynamic capacity investment model that includes realistic investor behavior. The long-term investment model includes features, such as strategic bidding of generators, price elasticity of demand, and ramping constraints. It incorporates an iterative...

Rising feed-in from renewable energy sources decreases margins, load factors, and thereby profitability of conventional generation in several electricity markets around the world. At the same time, conventional generation is still needed to ensure security of electricity supply. Therefore,...