Optimal storage and transmission investments in a bilevel electricity market model

Review on generation and transmission expansion co‐planning models under a market environment

“…On the one hand, Sauma and Oren [26] extend the work done in [27]; they analyse different objective functions and consider a spot market where the distinctive ownership structures are reflected (one GENCO can own several units), as proposed in [77]. Pozo et al [35] extend the theoretical work done in [26,27] II III IV V VI VII VIII 1 GEP TEP GEP TEP GEP GEP GEP TEP TEP MO TEP 2 -TEP GEP MO TEP MO GEP GEP MO MO 3 ----MO TEP MO MC 4 -------GO [30] - [28,29] where the complete multi-level model was not solved and only a set of different fixed transmission investment plans were evaluated. The work done in [35] proposes the first complete model; however, they relax the Cournot assumption and consider only perfect competition in the spot market.…”

“…Additionally, they consider a network fee so the TRANSCO can recover investments in the case of a flow-based fee regulation, typically used in the US. Later, Weibelzahl and Märtz [29] extend the work in [28], choosing a pessimistic TRANSCO and demonstrating some subsequent uniqueness properties, battery expansion is also considered in their framework.…”

“…As mentioned in Section 3.1.2 no anticipation of the spot market is assumed in [15,28,41]. In [29,41], multiple equilibria are eliminated considering a pessimistic TRANSCO approach.…”

Production Efficiency of Nodal and Zonal Pricing in Imperfectly Competitive Electricity Markets

“…To do this, we first define a new variable ϑ u,a and replace bilinear term x u,a g u by ϑ u,a . Then we add the constraints in (8) to the model in (6).…”

“…Zonal pricing aggregates nodes into zones with uniform prices. Ideally, zonal pricing should consider all transmission constraints and the nodal prices inside a zone should be the same [3], [4], [5] and [6]. In practice, a simplified transmission network is taken into account.…”