Type variety principle and the algorithm of strategic planning of diversified portfolio of electricity generation sources

Abstract

The article provides an approach for the electricity generation companies and their electricity generation portfolios (mix), mainly focusing on the European Union (EU). The model, looking at the management and optimization to structure the electricity generation portfolio for electricity providers, is aimed at defining a system to mix different electricity generation technologies, to maximize the value of the portfolio e.g. ensure energy security and minimize its environmental footprint. Given the limitations of resources and unstable energy market, this would help to understand to what degree electricity generating companies are able to achieve their goals and also how external regulators could achieve their goals. Type variety principle lies at the basis of a developed algorithm.