Sustainable Generation and Transmission Expansion Planning in Competitive Power Markets

Abstract

This paper, presents on the coordination of power system expansion planning including sustainable generation expansion planning (GEP) and transmission network expansion planning (TEP). For this purpose, a game theory based model is proposed to determine the dominant strategy of each investor entities in the generation and transmission sectors. In this model, all power producers compete with each other at the same level for maintaining the energy and reserve services. At this stage, after determining the Cournot equilibrium, the suggestions accepted in previous stage are evaluated in the transmission planning stage. Here, according to the existing units and the units proposed in the previous stage, transmission network expansion planning takes place based on cost, social welfare and reliability indices by independent system operator. Thereafter transmission expansion planning results announced, the accepted unit and not accepted units can offer their new strategies to the market. This iterative process continues until the dominant strategy of each entity is satisfied and the final equilibrium is obtained. To solve this game and finding its Nash equilibrium, the mixed integer non-linear programming (MINLP) optimization is used by all decision makers for optimizing their desirable strategies to invest in the power market. A conceptual test system is proposed to show the ability of the model. Simulation results verify the feasibility and capability of the proposed modeling of the long-term expansion planning.