Handbook of Networks in Power Systems I pp 367-393 | Cite as

# Planning Long-Term Network Expansion in Electric Energy Systems in Multi-area Settings

## Abstract

We present a multi-year and multi-area dynamic transmission expansion planning model. We define a set of metrics to rate the effect of the expansion among generators and demands. Additionally, we use congestion and saturation indexes, measuring changes in nodal prices and line saturations, respectively. We set the problem in a multi-area framework, assuming different entities in charge of the expansion simultaneously. The proposed formulation results in a mixed-integer linear optimization problem that can be solved using commercially available software. As a result, our model determines the best overall transmission expansion, reflecting both investment and operation costs as well as long-term financial parameters. The described approach is used to identify the most adequate expansion for a generic multi-area system based upon the IEEE 24-bus RTS. We compare the results obtained with individual expansions vs. multi-area expansions in terms of technical and economic indexes.

## Keywords

Average nodal price index Dynamic transmission planning Multi-area network Network congestion index Priority list Scenario analysis Welfare metrics## Notes

### Acknowledgments

This work was supported in part by the Spanish Ministry of Education grants ENE2011-27495, ENE2009-09541 and Junta de Andalucía grant 2008-TEP-4210, and the Junta de Comunidades de Castilla – La Mancha grant PII2I09-0154-7984.

## References

- 1.Alguacil N, Motto AL, Conejo AJ (2003) Transmission expansion planning: a mixed-integer LP approach. IEEE Trans Power Syst 18:1070–1076CrossRefGoogle Scholar
- 2.Binato S, Pereira MVF, Granville S (2001) A new benders decomposition approach to solve power transmission network design problems. IEEE Trans Power Syst 16:235–240CrossRefGoogle Scholar
- 3.Brooke A, Kendrick D, Meeraus A, Raman R (2003) GAMS/CPLEX 9.0. User notes. GAMS Development Corp., Washington, DCGoogle Scholar
- 4.Buygi MO, Balzer G, Shanechi HM, Shahidehpour M (2004) Market-based transmission expansion planning. IEEE Trans Power Syst 19:2060–2067CrossRefGoogle Scholar
- 5.Contreras J, Gross G, Arroyo JM, Muñoz JI (2009) An incentive-based mechanism for transmission investment. Decis Support Syst 47:22–31CrossRefGoogle Scholar
- 6.Contreras J, Wu FF (1999) Coalition formation in transmission expansion planning. IEEE Trans Power Syst 14:1144–1152CrossRefGoogle Scholar
- 7.Contreras J, Wu FF (2000) A kernel-oriented coalition formation algorithm for transmission expansion planning. IEEE Trans Power Syst 15:919–925CrossRefGoogle Scholar
- 8.de la Torre S, Conejo AJ, Contreras J (2008) Transmission expansion planning in electricity markets. IEEE Trans Power Syst 23:238–248CrossRefGoogle Scholar
- 9.Gallego RA, Monticelli A, Romero R (1998) Transmission system expansion planning by extended genetic algorithm. IEE Proc-Gener Transm Distrib 145:329–335CrossRefGoogle Scholar
- 10.Garces LP, Conejo AJ, Garcia-Bertrand R, Romero R (2009) A bilevel approach to transmission expansion planning within a market environment. IEEE Trans Power Syst 4:1513–1522CrossRefGoogle Scholar
- 11.Garver LL (1970) Transmission network estimation using linear programming. IEEE Trans Power Apparato Syst 89:1688–1697CrossRefGoogle Scholar
- 12.Latorre G, Cruz RD, Areiza JM, Villegas A (2003) Classification of publications and models on transmission expansion planning. IEEE Trans Power Syst 18:938–946CrossRefGoogle Scholar
- 13.Maghouli P, Hosseini SH, Buygi MO, Shahidehpour M (2009) A multi-objective framework for transmission expansion planning in deregulated environments. IEEE Trans Power Syst 24:1051–1061CrossRefGoogle Scholar
- 14.Oliveira GC, Costa APC, Binato S (1995) Large scale transmission network planning using optimization and heuristic techniques. IEEE Trans Power Syst 10:1828–1834CrossRefGoogle Scholar
- 15.Grigg C, Wong, P, Albrecht P, Allan R, Bhavaraju M, Billinton R, Chen Q, Fong C, Haddad S, Kuruganty S, Li W, Mukerji R, Patton D, Rau N, Reppen D, Schneider A, Shahidehpour M, Singh C (1996) Reliability test system taskforce: the IEEE reliability test system-1996. IEEE Trans Power Syst 14:1010–1020Google Scholar
- 16.Roh JH, Shahidehpour M, Fu Y (2007) Market-based coordination of transmission and generation capacity planning. IEEE Trans Power Syst 22:1406–1419CrossRefGoogle Scholar
- 17.Romero R, Gallego RA, Monticelli A (1996) Transmission system expansion planning by simulated annealing. IEEE Trans Power Syst 11:364–369CrossRefGoogle Scholar
- 18.Rosellón J (2003) Different approaches towards electricity transmission expansion. Rev Netw Econ 2:238–269CrossRefGoogle Scholar
- 19.Ruiz PA, Contreras J (2007) An effective transmission network expansion cost allocation based on game theory. IEEE Trans Power Syst 22:136–144CrossRefGoogle Scholar
- 20.Sauma EE, Oren SS (2006) Proactive planning and valuating of transmission investments in restructured electricity markets. J Regul Econ 30:358–387CrossRefGoogle Scholar
- 21.Sauma EE, Oren SS (2007) Economic criteria for planning transmission investment in restructured electricity markets. IEEE Trans Power Syst 22:1394–1405CrossRefGoogle Scholar
- 22.Shrestha GB, Fonseka PAJ (2004) Congestion-driven transmission expansion in competitive power markets. IEEE Trans Power Syst 19:1658–1665CrossRefGoogle Scholar
- 23.Tsamasphyrou P, Renaud A, Carpentier P (1999) Transmission network planning: an efficient benders decomposition scheme. In: Proceedings of the 13th power systems computation conference, Trondheim, Norway, pp 487–494Google Scholar
- 24.Villasana R, Garver LL, Salon SJ (1985) Transmission network planning using linear programming. IEEE Trans Power Apparat Syst 104:349–356CrossRefGoogle Scholar
- 25.Zolezzi JM, Rudnick H (2002) Transmission cost allocation by cooperative games and coalition formation. IEEE Trans Power Syst 17:1008–1015CrossRefGoogle Scholar