Sequential Coordination of Transmission Expansion Planning With Strategic Generation Investments

Abstract

Abstract-This paper proposes mathematical models for sequential coordination of transmission expansion planning with strategic generation investments. The proactive and reactive coordinations are modeled and studied. The interaction between transmission company (Transco) and strategic generation companies (Gencos) is modeled using the sequential-move game. This is while the interaction between the strategic Gencos is modeled as a simultaneous-move game. In the proactive coordination, the Transco expands its future transmission capacities taking into account the strategic investments by Gencos. In the reactive coordination, strategic Gencos move first and expand their future generation capacities and then Transco expands the transmission capacity. The proactive coordination is modeled as a mixedinteger bilevel linear program (MIBLP) and the reactive coordination is modeled as a mixed-integer linear program (MILP). The MIBLP has binary variables in both upper and lower levels. The Moore-Bard algorithm is parallelized and used to solve the MIBLP. The mathematical models and the parallelized MooreBard algorithm are tested on 3-bus and 6-bus example systems and the modified IEEE-RTS96. Also, the IEEE 118-bus test system is studied using a heuristic version of the Moore-Bard algorithm.

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

“…However, even in this case, multiple Nash equilibria can arise. 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.…”

Leader-Follower Approach to Gas-Electricity Expansion Planning Problem

“…The proposed methodology in [9] is a bi-level programming model whose upper-level represents the problem of investment in transmission and the lower-level problems represent market outcomes obtained from clearing the market and their investment in generation capacity. Work presented in [10] proposes a sequential coordination of transmission expansion planning with strategic generation investments. Generation companies (GenCos) move first and expand their future generation capacities and then transmission company (TransCo) makes investment decisions.…”

Generation Expansion Planning in the Presence of Wind Power Plants Using a Genetic Algorithm Model

“…For example, objective functions can be profit maximization of a generation company in the restructured power market [9], maximizing reliability [10], [11], minimizing operating costs [12], [13], and minimizing environmental pollution [14], [15]. In addition, constraints such as network security constraints [16], [17], [18], [19] , [20] , [21], investment costs [22], [23], [24], reliability [25], [26], [27], [28], [29], and environmental pollution [30] could be part of the constraints that are required to be considered in the GEP problem. Although less attention has been paid to the GEP problem in the presence of wind power plants in the literature, extensive studies have been carried out on GEP of traditional power plants with various objective functions and constraints [31], [32].…”