Multi-level game theory model for partially deregulated generation expansion planning

Abstract

Keeping the optimal planning solution in generation expansion problems under a partially deregulated market has raised a research gap based on an analytical approach. Therefore, this research proposes a multi-level game theory method for modelling the generation expansion planning in the partially deregulated market by considering the economic objective function and reliability constraint. The multi-level game theory is a modelling technique that combines game theory for multi-objective function and bi-level modelling. This research uses a case study of the West Nusa Tenggara system for implementation. The results show that the generation cost can be reduced by 25.7% compared to the 2019 generation cost and 2.9% compared to the electricity supply business plan. The proposed model results show that the electricity supply business plan needs to be revised, e.g., some committed power plants whose owners are unallocated do not need to be built, and some of those plants need to be postponed. Also, the financial burden of the utility to build power plants can be reduced if GenCos are interested in investing in unallocated power plants. Revising the electricity supply business plan produces a more economical plan and avoids inaccuracies in determining the owner.