Economic Expansion Planning of Sub-Transmission Grid and Regional Virtual Power Plant

Abstract

ABSTRACT This paper addresses a multi-objective approach for simultaneous dynamic expansion planning of conventional sub-transmission grid and Regional Virtual Power Plant (RVPP). In such a feed-in tariff electricity market, it will assist RVVP’s stakeholders in deciding whether or not they should invest in new equipment’s installation. A Multi-Objective Particle Swarm Optimization (MOPSO) algorithm as a heuristic optimization method is proposed to eliminate the conventional centralized planning, which has led to competition between Regional Electric Company (REC) and RVPP for power delivery in sub-transmission system. Two objective functions are considered for simultaneous expansion planning of these two systems. The first one takes the minimum cost of the REC, as the sub-transmission grid operator, into account while the other one considers profit maximization for RVPP. To achieve the goals, MOPSO algorithm is employed to find the best expansion of REC and best location and capacity of RVPP’s resources. Having solved the proposed multi-objective optimization problem, a Pareto front is determined to show the trade-off between REC and RVPPs' contributions in joint optimal expansion planning of conventional sub-transmission grid and the RVPP. To demonstrate the applicability and effectiveness of the proposed approach, a realistic sub-transmission system in Guilan Province, Iran is used as a test system, and the results are evaluated accordingly.