N.D.Hatziargyriou, “Transmission expansion planning in Deregulated Electricity Markets for increased Wind

Abstract-- In this paper, a model for transmission expansion planning (TEP) in deregulated electricity markets is developed, considering transmission congestion, wind power integration and double-sided bidding power-pool operation for both generation and demand. A compromise between the congestion revenue and the investment cost is used to determine the optimal expansion scheme, considering the outage rates of transmission lines. Both the level of congestion and the price deviation in the network are used as the driving indicators for the need of network expansion. The uncertainty in wind power generation introduces the probabilistic locational marginal prices (LMPs) and the estimated congestion revenue for a specific system configuration. The proposed TEP approach is applied on Garver's six bus system and the planning schemes results are assessed. Index Terms-- transmission expansion planning, electricity markets, power-pool, locational marginal pricing, transmission congestion, transmission security. I. NOMENCLATURE Cost of a line added to the i-j right of way. Susceptance of the line between nodes i andj. Number of new lines added to the i-j right of way. Initial number of lines between nodes i andj. Maximum number of circuits that can be added in right-of-way i-j. Active power flow in the i-j right of way. Active power flow limit in the i-j right of way. Bi Phase angle in node i. S Branch-node incidence matrix I Vector with elements Ii}. g Vector of active power generation with elements g /C (generation in bus k). g Vector of maximum generator capacity. d Vector of active power demand with elements dk The authors are with the School of Electrical and Computer Engineering