TRANSMISSION EXPANSION PLANNING IN OPEN ELECTRICITY MARKET

Abstract

Transmission planning provides an optimal transmission plans which meet the required reliability level as well as satisfying technical constraints with the least cost. In a competitive electricity market, it is subject to an increasing amount of uncertainties such as the demand forecast uncertainty, electricity price volatility, the generation system reliability, economic growth uncertainties, and changing environmental and social impacts on the energy sector. In addition to these uncertainties, planners also need to balance the technical requirement of the system and the requirements of market participants who aim at profit maximization. All these factors make transmission planning a very complex constrained multi-objective optimization problem which leaves less choice for the transmission planners. The result of transmission planning is a platform for electric participants to compete. It must have the ability to deal with contingencies and other events that may happen in the future. In this work transmission expansion planning problem under deregulated environment has been formulated as mixed integer linear programming and mixed integer non linear programming problems. The objective function consists of investment costs, generator offers, and demand bids. The Garver's six bus and IEEE 14 bus systems are considered for both static and dynamic planning in deregulated environment.