Abstract
Market power, defined as the ability to raise prices above competitive levels profitably, continues to be a prime concern in the restructured electricity markets. Market power must be mitigated to improve market performance and avoid inefficient generation investment, price volatility, and overpayment in power systems. For this reason, involving market power in the transmission expansion planning (TEP) problem is essential for ensuring the efficient operation of the electricity markets. In this regard, a methodological bilevel stochastic framework for the TEP problem that explicitly includes the market power indices in the upper level is proposed, aiming to restrict the potential market power execution. A mixed-integer linear/quadratic programming (MILP/MIQP) reformulation of the stochastic bilevel model is constructed utilizing Karush−Kuhn−Tucker (KKT) conditions. Wind power and electricity demand uncertainty are incorporated using scenario-based two-stage stochastic programming. The model enables the planner to make a trade-off between the market power indices and the investment cost. Using comparable results of the IEEE 118-bus system, we show that the proposed TEP outperforms the existing models in terms of market power indices and facilitates open access to the transmission network for all market participants.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
