Transmission Capacity Expansion Research Articles

CONCEPTS ON MARKET-ORIENTED TRANSMISSION INVESTMENT

For several years, much of the deregulated power industry has appeared to be in repair mode; in other words, the general approach seem to be fix a problem if it shows up and continue to function until another problem is encountered. Although a free market should generate enough signals within the confines of the market rules to sustain itself in the long run, such is not the norm in the case of the electricity industry. In this paper, market incentives for transmission capacity expansion are explored. A real options framework is presented whereby transmission investment can be funded and financial risks can be minimized. A game theory strategy that can be combined with real options is then introduced for calculating the value and cost of transmission investment. As an example, the use of game theory for allocating cost is presented with a simple three-generator, two-bus example. The proposed method has the advantage of considering the social welfare of all participants in order to ensure that the costs are being fairly allocated to those market participants that will realize the most benefit.

Reference Transmission Network: A Game Theory Approach

Summary form only given. The transmission network plays a key role in an oligopolistic electricity market. In fact, the capacity of a transmission network determines the degree to which the generators in different locations compete with others and could also greatly influence the strategic behaviors of market participants. In such an oligopolistic framework, different agents may have distinct and sometimes opposite interests in urging or hindering certain transmission expansions. Therefore, the regulatory authority, starting from the existing grid, faces the challenge of defining an optimal network upgrade to be used as benchmark for approval or rejection of a given transmission expansion. The aim of this paper is to define the concept of reference transmission network (RTN) from an economic point of view and to provide a tool for the RTN assessment in a deregulated framework where strategic behaviors are likely to appear. A general game-theoretic model for the RTN evaluation is presented and the solution procedure is discussed. The strategic behavior of market agents in the spot market is modeled according to a supply function equilibrium approach. The impact of transmission capacity expansion on market participants' strategic behavior is studied on a three bus test network. The RTN is computed and compared with the optimal expansion found when perfect competition among power producers is assumed.

Modeling Competition in Transmission Expansion

The transmission network plays a key role in allowing access to the most efficient generators to all consumers. In most cases, the new transmission projects are defined by a system operator, which focuses on improving the bulk system's reliability and reducing short-term operating problems. Because electricity market participants are prevented from investing in transmission facilities that may benefit them, transmission expansion may not have been sufficient to stimulate competition within the market. In this paper, we show formally through a mathematical formulation based on the Lagrangian relaxation technique that the investment in transmission capacity can be a profitable activity, therefore the introduction of competition in the transmission expansion could be possible. Such a competitive expansion of transmission capacity would allow the participants to improve the efficiency of the electricity market.

Heresy? The Case Against Deregulation of Electricity Generation

California's problems should make us face the facts that deregulation is an inherently risky course, that it increases capital costs, that control of market power and efficient transmission capacity expansion are still unsolved problems, and that governments are no more fit to deregulate than they are to regulate.

Superconducting transmission cables

The discovery of high-temperature superconductivity (HTS) in 1986-1988 rekindled interest in superconducting power transmission cables. Many projects are underway around the world to study the use of HTS power transmission cables. The siting and environmental issues facing the expansion of transmission capacity have become increasingly more difficult with time. The HTS power cable may be able to address some of these issues, especially in urban areas, where HTS retrofits of existing conventional cables can increase capacity substantially without increasing the footprint of the cable right of way. Several of the cable projects employing HTS are discussed in this article.

Coherent optical techniques for broadband ISDN

When introducing broadband video-telephone on a large scale a considerable expansion of transmission capacity will be needed in the trunk network. This expansion might economically be achieved by the application of optical amplifiers and coherent multicarrier (CMC) techniques. When introducing the optical fibre in the subscriber-line area the distribution of television programmes is a crucial point. In the long run, broadband distribution applying cmc techniques might be a solution. Another obstacle against the introduction of optical fibres in the subscriber loop area is the high cost of optoelectronic converters. Unless optoelectronic circuits can be made less expensive by monolithic integration an extensive application of optical fibres in the subscriber loop area cannot be expected in the long run. The single-mode fibre is the suitable transmission medium for all network layers. When applying cmc technique crosstalk can occur caused by nonlinearities of the fibre. According to first experiences cmc techniques seem to be applicable not only for optical transmission but also for optical switching of informations.

Transmission capacity expansion planning with economic dispatching and flow evaluation

A new method based on statistical simulation for production costing, reliability evaluation and transmission expansion planning of electric power systems is developed. This method considers apparatus outage probabilities and load forecast uncertainties. Random numbers are generated, according to appropriate laws, to simulate the state of the apparatus and the demand of the bus loads. Through successive applications of the minimum cost-maximum flow algorithm, it is capable of handling the economic dispatch problem embodied in the procedures. An expansion algorithm is introduced, which selects the element with the highest full load ratio ( FLR) for capacity addition. This method generates, as a byproduct, the expected power flow pattern which is valuable for power system planner. Application of the method is demonstrated using the IEEE five-bus test system.

Dynamic transmission planning under uncertainty

A new approximate method is presented to solve the dynamic optimization problem in long-range transmission capacity expansion planning. The method employs a static optimization technique along with an iterative procedure to simulate the dynamic solution. The proposed method can be simplified to provide a fast technique, also discussed in the paper. Comparison is made between the fast technique and the conventional horizon year planning approach.

Static transmission capacity expansion planning under uncertainty

This paper presents a new formulation of the static optimization problem in long-range transmission capacity expansion planning. A quantitative reliability technique is used in conjunction with a stochastic load flow formulation in order to accommodate uncertainty in system component availability and demand projections. The problem is solved using chance-constrained programming. Application of the formulation is demonstrated using the IEEE five-bus test system.