The optimal design of hybrid power generation systems (HPGS) can significantly improve the economical and technical performance of power supply. However, the discrete-time simulation with logical disjunctions involved in HPGS design usually leads to a nonsmooth optimization model, to which well established techniques for smooth nonlinear optimization could not be directly applied. This paper proposes a multistage design optimization problem with complementarity constraints approach for HPGS design, which introduces a complementarity formulation of the nonsmooth logical disjunction, as well as a multistage decomposition framework, to ensure a fast local solution. A numerical study of a stand-alone hybrid photovoltaic (PV)/wind power generation system is presented to demonstrate the effectiveness of the proposed approach.

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