Here, an optimisation framework is proposed for integrated resource expansion planning (IREP) including conventional generation units, wind generation units, and transmission lines while taking into account the role of demand response program (DRP) aggregators. This problem is a bi-level optimisation problem. In the upper-level problem, the objective function is to maximise the profit for each resource, that is, the generation company (GENCO), wind generation company (WINDCO), and transmission company (TRANSCO) as well as the DRP aggregator. Also, the lower-level problem considers a market model with the participation of private GENCOs, WINDCOs, TRANSCOs, and DRP aggregators. The lower-level problem minimises energy cost subject to AC power flow (PF) equations, power network limitations, pollution constraint, GENCO, WINDCO, TRANSCO constraints, and technical limitations of DRPs. Here, the lower-level problem is non-linear and non-convex. Accordingly, to facilitate the solution of the proposed bi-level optimisation problem, a linear model is proposed. Then, the proposed bilevel optimisation problem is converted into an integrated single-level one using the Karush-Kuhn-Tucker (KKT) conditions. Eventually, a mixed-integer linear programming (MILP) model is proposed. The proposed method is applied to the IEEE 6-bus and the IEEE 30-bus test systems, and finally, the capabilities of the proposed scheme are evaluated. Nomenclature Indices and sets (n/j), i, h, y, l, k Indices of buses, generations, hours, years, linearisation segments of line power flow terms and circular constraints, respectively. φ n , φ i , φ h , φ y , φ l , φ k , Sets of buses, generations, hours, years, linearisation segments of line power flow terms and circular constraints, respectively. Ω n Set of buses connected to bus n.
