A Three-Level Static MILP Model for Generation and Transmission Expansion Planning

• Published in: IEEE transactions on power systems Vol. 28; no. 1; pp. 202 - 210
• Main Authors: Pozo, D., Sauma, E. E., Contreras, J.
• Format: Journal Article
• Language: English
• Published: New York IEEE 01.02.2013; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Companies; Conferences; Electric networks; Electric power generation; Equilibrium problem subject to equilibrium constraints (EPEC); Generators; Indexes; Investment; Investments; Marketing; Markets; Mathematical model; Mathematical models; mathematical program subject to equilibrium constraints (MPEC); Mixed integer; Nash equilibrium; Planning; power systems economics; power transmission planning
• ISSN: 0885-8950; 1558-0679
• DOI: 10.1109/TPWRS.2012.2204073

We present a three-level equilibrium model for the expansion of an electric network. The lower-level model represents the equilibrium of a pool-based market; the intermediate level represents the Nash equilibrium in generation capacity expansion, taking into account the outcomes on the spot market; and the upper-level model represents the anticipation of transmission expansion planning to the investment in generation capacity and the pool-based market equilibrium. The demand has been considered as exogenous and locational marginal prices are obtained as endogenous variables of the model. The three-level model is formulated as a mixed integer linear programming (MILP) problem. The model is applied to a realistic power system in Chile to illustrate the methodology and proper conclusions are reached.