A Tri-level Model of Centralized Transmission and Decentralized Generation Expansion Planning for an Electricity Market: Part I

Date
2014-01-01
Authors
Jin, Shan
Ryan, Sarah
Ryan, Sarah
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Abstract

We develop a tri-level model of transmission and generation expansion planning in a deregulated power market environment. Due to long planning/construction lead times and concerns for network reliability, transmission expansion is considered in the top level as a centralized decision. In the second level, multiple decentralized GENCOs make their own capacity expansion decisions while anticipating a wholesale electricity market equilibrium in the third level. The collection of bi-level games in the lower two levels forms an equilibrium problem with equilibrium constraints (EPEC) that can be approached by either the diagonalization method (DM) or a complementarity problem (CP) reformulation. We propose a hybrid iterative solution algorithm that combines a CP reformulation of the tri-level problem and DM solutions of the EPEC sub-problem.

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<p>This is a manuscript of an article from <em>IEEE Transactions on Power Systems</em> 29 (2014): 132, doi: <a href="http://dx.doi.org/10.1109/TPWRS.2013.2280085" target="_blank">10.1109/TPWRS.2013.2280085</a>. Posted with permission.</p>
Keywords
Complementarity problem, equilibrium problem with equilibrium constraints, generation expansion planning, mathematical program with equilibrium constraints, Nash equilibrium, transmission expansion planning
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