Sustainable generation and transmission expansion planning in competitive power markets

Mohammad Sadegh Javadi

doi:10.17485/ijst/2012/v5i2.3

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. Keywords: Generation Expansion Planning, Transmission Expansion Planning, Game theory

Highlights

Expansion Planning (TEP), candidate lines, links andAfter power system restructuring, preliminary their capacity are determined
In the transmission arrangements have been provided in the power industry expansion planning, the main objective is maintaining the for making a competitive electricity market in different load of subscribers at low cost and the highest reliability
Numerous articles have been published on the restructuring was begun with short term competition in generation and transmission expansion planning up to weekly and monthly programs in the electricity market. this time

Summary

Introduction

Preliminary their capacity are determined. In the transmission arrangements have been provided in the power industry expansion planning, the main objective is maintaining the for making a competitive electricity market in different load of subscribers at low cost and the highest reliability. Planning for long-term goals in the electrical energy in a market environment is very similar to the traditional and classic electricity network, there is a substantial difference between them In this case, a series of institutions, which should be determined by the legislative entity or ISO, must approve the project. Since the Locationl Marginal Prices (LMP) are function of generation cost, congestion and losses, if the line capacity does not meet the load at one bus, marginal generation unit will determine the final price at this bus In this case, unified power system planning performs the network expansion planning, in such an approach, which the ultimate goal is the load maintaining with the lowest cost and the highest level of reliability. The comprehensive game flowchart is depicted in Fig.[1]

Stable Solution

From To

Bus a b c

Findings

LM P