Abstract: We consider power system expansion planning under
uncertainty. In our approach, integer programming and stochastic
programming provide a basic framework. We develop a multistage
stochastic programming model in which some of the variables are
restricted to integer values. By utilizing the special property of the
problem, called block separable recourse, the problem is transformed
into a two-stage stochastic program with recourse. The electric power
capacity expansion problem is reformulated as the problem with first
stage integer variables and continuous second stage variables. The
L-shaped algorithm to solve the problem is proposed.