31st European Conference on Operational Research - EURO 2021, Athens (Greece). 11-14 July 2021
Summary:
We apply the JuDGE optimization package to a multistage stochastic leader-follower model that determines a transmission capacity expansion plan to maximize expected social welfare of consumers and producers who act as Cournot oligopolists in each time period. The problem is formulated as a large-scale mixed integer program and applied to a 5-bus instance over scenario trees of varying size. We compare model results for three different cases: assuming a perfectly competitive market; considering one coal monopolist in the market; or assuming a Cournot oligopoly. This allows us to show the impact of imperfect competition on transmission expansion. We also present some computational results comparing JuDGE with solving the deterministic equivalent mixed integer program using a state-of-the-art integer programming package.
DOI: 
https://doi.org/10.1098/rsta.2019.0436
Published in: Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, vol. 379, nº. 2202, ISSN: 1364-503X
Publication date: 26-Jul-2021.
Citation:
S. Wogrin, "Welfare-maximizing transmission capacity expansion under uncertainty and imperfect competition", presented at 31st European Conference on Operational Research - EURO 2021, Athens, Greece, 11-14 July 2021. In: Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, vol. 379, nº. 2202, doi: 10.1098/rsta.2019.0436
IIT-21-049A_abstract
