Coordinated decisions for transmission and generation expansion planning in electricity markets

Abstract

SUMMARY This paper presents a new approach to coordinate the decisions of transmission and generation capacity expansion planning for a competitive electricity market in which only the generation sector is deregulated. The independent system operator (ISO) as transmission planner has a regulatory role in the strategic behavior of generation companies. To reach coordinated decisions, the model relies on an interactive and iterative process between generation expansion planning and transmission expansion planning. This repetitive process continues until reaching a converging point or fulfilling the stopping criterion assigned by the ISO. In order to consider random outages of network components as well as uncertainty of load and bid prices of generating units, the Monte Carlo simulation method is applied. The simulation results confirm the efficacy of the proposed model in the coordinated generation and transmission planning problem considering the uncertainties. Copyright © 2012 John Wiley & Sons, Ltd.

A multi-attribute congestion-driven approach for evaluation of power generation plans

“…A PGP includes location, size, and type of generation units [1,2,33,37,38]. Meanwhile, it is necessary to consider power system security in power generation planning [34]. Relevant attempts in this regard could be categorized into two folds: (i) Considering network constraints in the optimization model developed for generation planning problem [3][4][5]32].…”

Probabilistic multi-objective transmission investment and expansion planning

“…A well-organized transmission expansion planning (TEP) scheme plays a major role in electricity markets around the world [1]. The competition between power market participants forms backbone of the electrical energy industry in deregulated power systems [2].…”

“…Traditionally, TEP is defined as the problem of finding which, where, and when new lines should be constructed to optimize performance of the transmission network. The fundamental objective of this optimization problem is to minimize investment cost subject to maintaining the power system security constraints [1]. However, deregulation changes this problem.…”

“…The root of this drawback is associated with transmission services pricing and tariffs, and also power system uncertainties make it more severe. Therefore, TEP methods need to be modified to include the private investors' needs which are high rate of return on any given investment and low risk [1]. Including the needs of private investors in TEP can make transmission projects more attractive for them.…”

“…However, none of the mentioned references include the financial aspects of transmission lines in TEP and therefore are not useful for private investors since their results do not show those transmission lines which are economically profitable. Different methods are used to handle the uncertainties [1,7,16,19,[22][23][24][25][26]. References [1,16,26] use Monte Carlo simulation (MCS) to handle the random uncertainties.…”