Dynamics of power-transmission capacity expansion under regulated remuneration

Zambrano, Cristian; Arango-Aramburo, Santiago; Morales, Yris Olaya

doi:10.1016/j.ijepes.2018.07.029

Cited by 6 publications

(6 citation statements)

References 38 publications

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“…This type of revenue for transmission companies is often called supplementary revenue because it is considered to be financially impractical to allow transmission owners to collect revenue solely based on LMP differences. Since transmission investments sometimes relieve network congestion and decrease LMP differences, the decline in revenue should be compensated with a supplementary revenue [37].…”

Section: Quantification Of Values Of Transmission Investmentsmentioning

confidence: 99%

A lattice method for jump-diffusion process applied to transmission expansion investments under demand and distributed generation uncertainties

Kucuksayacigil

Min

2020

Energy Syst

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Strategic decision making for rare events is considered to be an arduous course of actions as their impacts cannot accurately be modeled. Transmission of electrical power is a major challenge in this day and age due to the prevalent of rare events. Decision makers of generation units, distribution utilities, and transmission networks do not often cooperate, which creates severe uncertainties for all players. Growth of demand for electricity and installation or removal of distributed generation (DG), considered to be a rare event, are among uncertainties encountered by transmission network owners. Expansion decisions for transmission lines should be strategically executed because installations of DGs may create a stranded cost for transmission owners. In this study, we propose a real options framework that quantifies the values of transmission investments under demand and DG uncertainties to guide decision makers of transmission companies regarding how to adapt their expansions decisions. We model demand uncertainty as a geometric Brownian motion process and DG uncertainty as a Poisson arrival process. We devise a computationally-efficient lattice diagram to discretize both processes in a single grid, which can also be employed to model other types of rare events in various sectors. The proposed framework is demonstrated on a realistic transmission network. Numerical study shows that our proposed lattice model is computationally superior over existing diagrams. As for managerial insights, it shows that depending on the locations of DG installations, DG penetration may not reduce the value of a transmission network. If the center at which a DG is installed has a large-capacity local generator, the installation may not undervalue the transmission network.

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Section: Quantification Of Values Of Transmission Investmentsmentioning

confidence: 99%

A lattice method for jump-diffusion process applied to transmission expansion investments under demand and distributed generation uncertainties

Kucuksayacigil

Min

2020

Energy Syst

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“…The full complexity of the AC power flow model was taken into account in works such as [42]. Behavioral simulation model in which centralized and decentralized, as well as the hybrid model approaches was applied in [13]. The centralized market approach contributes in improving the system's reliability, while the decentralized market approach, promotes investment through usage charges and compensations as shown in Fig.…”

Section: A Choice Of Modeling Techniques In Tnepmentioning

confidence: 99%

“…Integration of renewable energy sources in power network expansion planning is crucial due to emission reduction targets and clean energy supply to the grid [10]. However, renewable energy sources pose further challenges in TNEP process [13]. The renewable energy intermittent behaviour and the inherent uncertainties of long term TNEP demand the use of fast solution technique that can explicitly cope with the uncertainties [12].…”

Section: Introductionmentioning

confidence: 99%

A Comprehensive State-of-the-Art Survey on the Transmission Network Expansion Planning Optimization Algorithms

2019

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Long term planning in power transmission network expansion provides a well ordered and profitable extension of power equipment and facilities to meet the expected electric energy demand with an allowable degree of reliability. However, high quality and improved reliability in energy supply have to be balanced with the available funds. The need to expand transmission network can never be over emphasized. Transmission Network Expansion Planning (TNEP) is a periodical measure that must be carried out due to dynamic societies that attract extra energy demands. It is highly important to minimize the network reinforcement and operational costs while satisfying the increase in demand imposed by technical and economic conditions over the planning horizon. Several optimization algorithms for TNEP problems have been developed and applied over the past decades. This paper presents a comprehensive state-of-the-art survey on the TNEP optimization algorithms. The approach of this paper is in the area of highlights of the various available TNEP algorithms, their applications, viability, computational complexities and drawbacks, which can aid in the identifications of the proper methods that can yield an optimal solution to TNEP problem. INDEX TERMS Algorithm, hybrid, meta-heuristics, optimization techniques, power network expansion planning, power system, transmission network expansion.

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“…In [32,47] the simultaneous expansion of the generation and transmission was carried out taking into account the presence of fixed series compensation (FSCs). In [26,46] GTEP with three aims with consideration of wind farms in the form of a MILP was carried out. In [10] two planning methods are considered: (1) centralized expansion planning in which investments are fully programmed by a central organization and (2) Decentralized expansion planning in which the extension of generation and transmission capacities is carried out by attracting investors who examine market developments.…”

Section: Introductionmentioning

confidence: 99%

“…A flexible method for the expansion of transmission lines is introduced In [44] in which the presence of wind farm is merged with the use of the demand response mechanism. Benders decomposition method is another method of solving the TEP problem in the presence of wind energy, which was investigated In [34,46]. In [14] a two-step TEP method is used to reduce investment costs and the stopped wind energy (in order to maximize the use of renewable energy).…”

Section: Introductionmentioning

confidence: 99%

Multi-period generation-transmission expansion planning with an allocation of phase shifter transformers.

Moradi,

Ordouei,

Hashemi

2023

SSRN Journal

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Dynamics of power-transmission capacity expansion under regulated remuneration

Cited by 6 publications

References 38 publications

A lattice method for jump-diffusion process applied to transmission expansion investments under demand and distributed generation uncertainties

A lattice method for jump-diffusion process applied to transmission expansion investments under demand and distributed generation uncertainties

A Comprehensive State-of-the-Art Survey on the Transmission Network Expansion Planning Optimization Algorithms

Multi-period generation-transmission expansion planning with an allocation of phase shifter transformers.

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