Market-based generation and transmission planning with uncertainties

Jae Hyung Roh, Mohammad Shahidehpour, Lei Wu

Research output: Contribution to journalArticlepeer-review

270 Scopus citations

Abstract

This paper presents a stochastic coordination of generation and transmission expansion planning model in a competitive electricity market. The Monte Carlo simulation method is applied to consider random outages of generating units and transmission lines as well as inaccuracies in the long-term load forecasting. The scenario reduction technique is introduced for reducing the computational burden of a large number of planning scenarios. The proposed model assumes a capacity payment mechanism and a joint energy and transmission market for investors' costs recovery. The proposed approach simulates the decision making behavior of individual market participants and the ISO. It is an iterative process for simulating the interactions among GENCOs, TRANSCOs and ISO. The iterative process might be terminated by the ISO based on a pre-specified stopping criterion. The case studies illustrate the applications of proposed stochastic method in a coordinated generation and transmission planning problem when considering uncertainties.

Original languageEnglish
Pages (from-to)1587-1598
Number of pages12
JournalIEEE Transactions on Power Systems
Volume24
Issue number3
DOIs
StatePublished - 2009

Keywords

  • Competitive electricity market
  • Coordination of generation and transmission planning
  • Mixed integer programming
  • Monte Carlo simulation
  • Random outages and uncertainty
  • Transmission network security

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