A Nash Approach to Planning Merchant Transmission for Renewable Resource Integration

dc.contributor.author Zhou, Qun
dc.contributor.author Tesfatsion, Leigh
dc.contributor.author Liu, Chen-Ching
dc.contributor.author Chu, Ron
dc.contributor.author Sun, Wei
dc.contributor.department Economics
dc.date 2018-02-18T02:56:20.000
dc.date.accessioned 2020-06-30T02:07:24Z
dc.date.available 2020-06-30T02:07:24Z
dc.date.copyright Tue Jan 01 00:00:00 UTC 2013
dc.date.issued 2013-01-01
dc.description.abstract <p>Major transmission projects are needed to integrate and to deliver renewable energy (RE) resources. Cost recovery is a serious impediment to transmission investment. A negotiation methodology is developed in this study to guide transmission investment for RE integration. Built on Nash bargaining theory, the methodology models a negotiation between an RE generation company and a transmission company for the cost sharing and recovery of a new transmission line permitting delivery of RE to the grid. Findings from a six-bus test case demonstrate the Pareto efficiency of the approach as well as its fairness, in that it is consistent with one commonly used definition of fairness in cooperative games, the Nash cooperative solution. Hence, the approach could potentially be used as a guideline for RE investors. The study also discusses the possibility of using RE subsidies to steer the negotiated solution towards a system-optimal transmission plan that maximizes total net benefits for all market participants. The findings suggest that RE subsidies can be effectively used to achieve system optimality when RE prices are fixed through bilateral contracts but have limited ability to achieve system optimality when RE prices are determined through locational marginal pricing. This limitation needs to be recognized in the design of RE subsidies.</p>
dc.description.comments <p>© 2013 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works. DOI: <a href="http://dx.doi.org/10.1109/TPWRS.2012.2228239" target="_blank">10.1109/TPWRS.2012.2228239</a></p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_pubs/472/
dc.identifier.articleid 1469
dc.identifier.contextkey 9486728
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/472
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/21691
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_pubs/472/2013_Tesfatsion_NashApproach.pdf|||Sat Jan 15 00:25:31 UTC 2022
dc.source.uri 10.1109/TPWRS.2012.2228239
dc.subject.disciplines Dynamic Systems
dc.subject.disciplines Industrial Organization
dc.subject.disciplines Power and Energy
dc.title A Nash Approach to Planning Merchant Transmission for Renewable Resource Integration
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication 1b45fd18-54a5-46e7-a853-62262cd64b39
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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