Market-Based Transmission Expansion Planning

Abstract

Abstract-Restructuring and deregulation has exposed transmission planner to new objectives and uncertainties. Therefore, new criteria and approaches are needed for transmission planning in deregulated environments. A new market-based approach for transmission planning in deregulated environments is presented in this paper. The main contribution of this research is: i) introducing a new probabilistic tool, named probabilistic locational marginal prices, for computing the probability density functions of nodal prices; ii) defining new market-based criteria for transmission expansion planning in deregulated environments; and iii) presenting a new approach for transmission expansion planning in deregulated environments using the above tool and criteria. The advantages of this approach are: i) it encourages and facilitates competition among all participants; ii) it provides nondiscriminatory access to cheap generation for all consumers; iii) it considers all random and nonrandom power system uncertainties and selects the final plan after risk assessment of all solutions; and iv) it is value based and considers investment cost, operation cost, congestion cost, load curtailment cost, and cost caused by system unreliability. The presented approach is applied to IEEE 30-bus test system.

Market-Based Transmission Expansion Planning Under Uncertainty in Bids by Fuzzy Assessment

“…By now, several market-based criteria such as total congestion cost of the transmission network [3,8,27], standard deviation of the mean of the LMPs [3,27] and Lerner index [6,7] have been presented to evaluate transmission network from the viewpoint of market.…”

Market-based valuation of transmission network expansion. A heuristic application in GB

“…We assume that the system operator dispatches generating resources to minimize the total costs of generation and unserved energy ( ) across all the nodes. The aim is to find an optimal vector of power generated at all the nodes and power consumed at all the nodes that minimizes system costs at any time: 14 s.t. The first four restrictions set the environment as determined by the operation state of the physical assets.…”

“…The components of the power system are subject to limits. Actual 14 In addtion to carbon dioxide emissions there can be others ( , , ..) which are valued. If so, the objective function could include another term.…”

“…1 Transmission expansion is critical to address not only growing demand, but also some other immediate and strategic concerns. In addition to reducing hours of curtailed demand it can: (a) reinforce competition among participants in the electricity market, (b) enable more efficient operation of generating units (with savings in fuel costs and emission allowances spared) and lower electricity bills, (c) hedge against climate and physical uncertainties, and (d) clear the way to suitable yet remote resources; Buygi et al [14].…”

Reliability-based generation resource planning in electricity markets

“…However, the competition among GenCos was not considered. Buygi et al proposed a market-based transmission expansion planning approach that facilitates market competition by enabling a flat price profile throughout the transmission network [7]. The flatness of locational price, which means lack of congestion, was taken as the proper criterion for measuring the degree of competitiveness of the transmission network.…”