Economic Analysis of Transmission Expansion Planning With Price-Responsive Demand and Quadratic Losses by Successive LP

Özdemir, Özge; Muñoz, Francisco D.; Ho, Jonathan; Hobbs, Benjamin F.

doi:10.1109/tpwrs.2015.2427799

Cited by 63 publications

(36 citation statements)

References 46 publications

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“…However, accounting for changes in the reactance values would result in a non-linear and non-convex model. Solving such model would require application of a customized algorithm, as the one proposed in Ozdemir et al (2016). The application is beyond the scope of this article since our emphasis on analyzing the impacts of risk aversion.…”

Section: Sets and Indicesmentioning

confidence: 99%

Does risk aversion affect transmission and generation planning? A Western North America case study

et al. 2017

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We investigate the effects of risk aversion on optimal transmission and generation expansion planning in a competitive and complete market. To do so, we formulate a stochastic model that minimizes a weighted average of expected transmission and generation costs and their conditional value at risk (CVaR). We show that the solution of this optimization problem is equivalent to the solution of a perfectly competitive risk-averse Stackelberg equilibrium, in which a risk-averse transmission planner maximizes welfare after which risk-averse generators maximize profits. This model is then applied to a 240-bus representation of the Western Electricity Coordinating Council, in which we examine the impact of risk aversion on levels and spatial patterns of generation and transmission investment. Although the impact of risk aversion remains small at an aggregate level, state-level impacts on generation and transmission investment can be significant, which emphasizes the importance of explicit consideration of risk aversion in planning models.1 As discussed in , both the Midcontinent and the California Independent System Operators use engineering rules that aim at identifying "robust" or "least regret" transmission projects. Although risk aversion is not explicitly mentioned in these studies, their methodologies suggest that the planning authorities are more concerned with worst-case situations (i.e., risk averse preferences) than with the expected performance of the selected projects across all considered scenarios (i.e., risk neutrality).

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Section: Sets and Indicesmentioning

confidence: 99%

Does risk aversion affect transmission and generation planning? A Western North America case study

et al. 2017

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“…SLP has been applied in smart grid community, e.g., to the planning of generators' investments and transmission network extensions [30], or to the tackling of non-linear phenomena in variants of the optimal power flow problem [31]. At the same time, to the best of our knowledge, this paper is the first to apply SLP to tariff optimization for demand response.…”

Section: Mathematical Methodologymentioning

confidence: 99%

Bilevel programming approach to demand response management with day-ahead tariff

Kovács

2019

J. Mod. Power Syst. Clean Energy

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This paper introduces a bilevel programming approach to electricity tariff optimization for the purpose of demand response management (DRM) in smart grids. In the multi-follower Stackelberg game model, the leader is the profit-maximizing electricity retailer, who must set a time-of-use variable energy tariff in the grid. Followers correspond to groups of prosumers (simultaneous producers and consumers of the electricity. They response to the observed tariff, schedule controllable loads and determine the charging/discharging policy of their batteries to minimize the cost of electricity and to maximize the utility at the same time. A bilevel programming formulation of the problem is defined, and its fundamental properties are proven. The primal-dual reformulation is proposed in this paper to convert the bilevel optimization problem into a single-level quadratically constrained quadratic program (QCQP), and a successive linear programming (SLP) algorithm is applied to solve it. It is demonstrated in computational experiments that the proposed approach outperforms typical earlier methods based on the Karush-Kuhn-Tucker (KKT) reformulation regarding both solution quality and computational efficiency on practically relevant problem sizes. Besides, it also offers more flexible modeling capabilities.

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“…Coordinating the different resources of flexibility may help to improve power system security and economics under uncertainty, facilitating the integration of renewable energy generation with less investment. Some contributions have been made in the coordination of generation-side and grid-side flexibility in economic dispatch [68,69,70,86,94] system expansion planning [131,132,133,134,135,136,137], transmission-generation-demand response co-optimization [138], transmission expansion planning with demand response resources [92].…”

Section: Coordination Of Different Flexibility Resourcesmentioning

confidence: 99%

Grid-side flexibility of power systems in integrating large-scale renewable generations: A critical review on concepts, formulations and solution approaches

Jia

Liu

et al. 2018

Renewable and Sustainable Energy Reviews

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Though considerable effort has been devoted to exploiting generation-side and demand-side operational flexibility in order to cope with uncertain renewable generations, grid-side operational flexibility has not been fully investigated. In this review, we define grid-side flexibility as the ability of a power network to deploy its flexibility resources to cope with the changes of power system state, particularly due to variation of renewable generation. Starting with a survey on the metrics of operational flexibility, we explain the definition from both physical and mathematical point of views. Then conceptual examples are presented to demonstrate the impacts of grid-side flexibility graphically, providing a geometric interpretation for a better understanding of the concepts. Afterwards the formulations and solution approaches in terms of grid-side flexibility in power system operation and planning are reviewed, based on which future research directions and challenges are outlined.

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Economic Analysis of Transmission Expansion Planning With Price-Responsive Demand and Quadratic Losses by Successive LP

Cited by 63 publications

References 46 publications

Does risk aversion affect transmission and generation planning? A Western North America case study

Does risk aversion affect transmission and generation planning? A Western North America case study

Bilevel programming approach to demand response management with day-ahead tariff

Grid-side flexibility of power systems in integrating large-scale renewable generations: A critical review on concepts, formulations and solution approaches

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