Generation/transmission investment planning integrated with market equilibrium models in electricity markets
This paper introduces integrated models for transmission investments anticipating the generation investments and market-clearing equilibrium. Market-clearing models for deregulated electricity markets can inform decision makers on price signals formed in the competitive market other investor's and/or generator's behaviors underlying these price signals and new generation/transmission investment decisions. Bi-level programming problems are formed for this integrated models and reformulated by using mathematical programs with equilibrium constraints (MPEC). A simultaneous optimization model (as mixed complementarity problem-MCP) is proposed to compute the same equilibrium solution of the MPEC problem. The proposed MCP model is found to be computationally more efficient than the traditional MPEC reformulations on a simple 3-bus example. These models will be useful in planning generation/transmission investments and analyzing the relations among these investments and the market outcomes. © 2017 IEEE.
SourceInternational Conference on the European Energy Market
KeywordsGeneration and transmission investment models
Mathematical programs with equilibrium constraints (MPEC)
Simultaneous optimization by mixed complementarity problem (MCP)