---
title: "Generation and distribution planning procedure"
subject: "Power Plant Design"
chapter: 2
key: "semester_8/power_plant_design:planning-generation-distribution"
source: https://www.bctengineer.com/q/semester_8/power_plant_design/planning-generation-distribution
site: BCT Engineering
---

# Generation and distribution planning procedure

Power Plant Design · Chapter 2: Integrated System Planning in Design Approach

- Asked in: 2074 Magh, 6 marks
- Video: [Generation Planning Part 1](https://www.youtube.com/watch?v=4DSqspq7iYU) — Omkar Buwa
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/power_plant_design/planning-generation-distribution
- Whole chapter: https://www.bctengineer.com/md/semester_8/power_plant_design/chapter-2

## Question

Explain the importance of power system planning? Discuss briefly the generation expansion and distribution planning procedure.

## Short answer

Power system planning ensures reliable demand at minimum cost, avoiding shortages or overinvestment. Generation expansion forecasts load, defines candidate plants, simulates operation with reliability criteria, and selects the least-cost mix. Distribution planning forecasts spatial load, and plans substations, reconductoring, and automation to meet criteria.

## Answer

**Power system planning** decides the type, size, location and timing of new generation, transmission and distribution facilities so that the forecast demand is met reliably at minimum cost.

#### Importance
- Ensures enough capacity ahead of demand, avoiding load shedding (Nepal faced up to 18 h/day load shedding due to poor planning before 2016).
- Avoids over-investment and idle capacity or energy spill.
- Coordinates long lead-time projects (hydro takes 5–10 years).
- Gives the right mix of plants (ROR, storage, solar, import) for seasonal and daily demand.
- Supports financing, tariff setting and policy decisions.
- Maintains reliability and quality of supply.

#### Generation expansion planning procedure
1. Forecast peak demand and energy for 15–25 years (high/base/low).
2. List existing plants, their capacity, firm energy and retirement dates.
3. Identify candidate plants with capital and operating cost, lead time and seasonal output.
4. Fix reliability criteria (LOLP or reserve margin).
5. Form alternative expansion sequences.
6. Simulate operation (production costing) of each sequence.
7. Compare present worth of total cost; choose the least-cost plan.
8. Do sensitivity analysis (demand, hydrology, cost, discount rate) and finalise.

#### Distribution planning procedure
1. Make spatial (area-wise) load forecast.
2. Study existing feeders and substations: loading, voltage drop, losses, reliability.
3. Set criteria for voltage drop, losses and reliability indices.
4. Plan new or upgraded 33/11 kV substations and distribution transformers.
5. Plan feeders: new feeders, reconductoring, ring/loop arrangements, underground cables.
6. Add capacitors, regulators, automation and smart meters.
7. Evaluate cost and select the best plan; implement in phases and review.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why is power system planning important?
   A. It ensures capacity ahead of demand and avoids both load shedding and idle capacity
   B. It raises load shedding
   C. It eliminates need for hydro
   D. It only reduces taxes
   Answer: A. Planning prevents shortage (like Nepal's 18 h/day load shedding before 2016) and over-investment. (Key point: Importance)

2. What is done after forming alternative expansion sequences in GEP?
   A. Nothing
   B. Operation of each sequence is simulated (production costing)
   C. Plants are demolished
   D. Tariff is fixed
   Answer: B. Simulation gives operating cost, spill and reliability for each plan before economic comparison. (Key point: Production simulation)

3. What does sensitivity analysis in GEP test?
   A. Colour of plant
   B. Number of staff
   C. Plan's robustness to demand, hydrology, cost and discount rate changes
   D. Voltage drop
   Answer: C. It checks whether the chosen plan remains good under changed assumptions. (Key point: Sensitivity)

4. Which belongs to feeder planning in distribution?
   A. Building a dam
   B. Reconductoring, new feeders, ring/loop arrangements and underground cables
   C. Setting LOLP
   D. Forecasting national energy
   Answer: B. Feeder planning upgrades or adds feeders and improves reliability by ring arrangements. (Key point: Distribution feeder planning)

## Related in Power Plant Design

- [Generation expansion planning procedure](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Ageneration-expansion-procedure) — Power Plant Design, chapter 2, asked 3×
- [Power system expansion planning for a utility](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Aexpansion-planning-national-utility) — Power Plant Design, chapter 2
- [Generation expansion planning and load forecasting](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Ageneration-expansion-load-forecast) — Power Plant Design, chapter 2
- [Transmission and distribution planning procedure](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Aplanning-transmission-distribution) — Power Plant Design, chapter 2
- [Transmission expansion planning procedure](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Atransmission-expansion-procedure) — Power Plant Design, chapter 2
- [Factors affecting system expansion planning](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Asystem-expansion-factors) — Power Plant Design, chapter 2

## Related in other subjects

- [Why generation and distribution voltages are lower](https://www.bctengineer.com/question.md?key=semester_4%2Fpower_system_analysis_i%3Ageneration-distribution-lower-voltage) — Power System Analysis I, chapter 1
- [Planning of distribution; intermittent supply](https://www.bctengineer.com/question.md?key=semester_5%2Fwater_supply_engineering%3Adistribution-planning-intermittent) — Water Supply Engineering, chapter 7
- [Planning for manufacture, distribution and retirement](https://www.bctengineer.com/question.md?key=semester_6%2Fmachine_design_i%3Amanufacture-distribution-retirement-planning) — Machine Design I, chapter 3
- [Interconnected system and transmission planning](https://www.bctengineer.com/question.md?key=semester_8%2Ftransmission_and_distribution_system_design%3Ainterconnected-system-planning) — Transmission and Distribution System Design, chapter 1
