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Coordination of generation and transmission development through generation transmission charges - a game theoretical approach

Y. Tohidi, L. Olmos, M. Rivier, M.R. Hesamzadeh

IEEE Transactions on Power Systems Vol. 32, nº. 2, pp. 1103 - 1114

Summary:

Transmission charges aim to recover the cost of transmission network investments and provide efficient locational signals to new generators. In this paper, we investigate the effect of these charges on the development of new generation capacities in the system. Generation expansion planning is decided by strategic generation planners (SGPs) trying to maximize their profits, while transmission line investments are planned by a central planner and regulatory body aimed at minimizing the overall operation and network investment costs of the system. Regulatory transmission charges (RTCs) are calculated according to the marginal responsibility of generation investment on transmission network investment costs. An iterative algorithm is proposed to model the interaction taking place between the central planner and SGPs. The developed methodology is applied to a 2-node illustrative example and the IEEE-RTS96, and effects of RTCs on investment decisions of SGPs are analyzed.


Keywords: Generation expansion planning; Game theory; Marginal transmission charges.


JCR Impact Factor and WoS quartile: 5,255 - Q1 (2017); 6,500 - Q1 (2023)

DOI reference: DOI icon https://doi.org/10.1109/TPWRS.2016.2581218

Published on paper: March 2017.

Published on-line: June 2016.



Citation:
Y. Tohidi, L. Olmos, M. Rivier, M.R. Hesamzadeh, Coordination of generation and transmission development through generation transmission charges - a game theoretical approach. IEEE Transactions on Power Systems. Vol. 32, nº. 2, pp. 1103 - 1114, March 2017. [Online: June 2016]


    Research topics:
  • *Long-Term Strategic Analysis

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