Under the current European market environment, transmission companies have to decide network expansion by maximizing social welfare. However, generation companies (GENCOs) decide their capacity expansion with the aim of maximizing their own profit. This process, in addition to the increasing penetration of renewable energy, storage and distributed generation, might represent a rupture between short and long-term signals. Therefore, this paper proposes a bi-level formulation for the generation and transmission coordination problem (GEPTEP). We consider a proactive framework in which a centralized TSO represents the upper level while the decentralized GENCOs, that trade in the market, represent the lower level. As a novel feature, an enhanced representative period framework is employed, which allows us to consider operation in both short and long-term storage technologies. A case study is presented to compare the results between perfect and imperfect competition in the market.
Keywords: Proactive; Bi-level; Strategic; ransmission expansion; Generation expansion; Storage
Energy Strategy Reviews. Volume: 24 Pages: 154-165
JCR Impact Factor and Scopus quartile: 2.164 - Q2 (2017)
DOI reference: 10.1016/j.esr.2019.02.006
Published on paper: April 2019. Published on-line: March 2019.