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A Bilevel Programing Approach to Modeling of Power Transmission Capacity Planning

Paolo Pisciella, Marida Bertocchi and Maria Teresa Vespucci

No 1304_qum, Working Papers (2013-) from University of Bergamo, Department of Management, Economics and Quantitative Methods

Abstract: We propose a TransCo model for coordinating transmission expansion planning with com- petitive generation capacity planning in electricity markets. Our purpose is to provide a tool to simulate the equilibrium interplay regarding strategic decisions of a set of power producers and a single transmission operator. The solution represents an iterative process for de ning the optimal transmission expansion program together with a correct guess of the power plants expansion program for each GenCo involved. The composition of new investments in power plants guessed by the TransCo must coincide with the optimal expansion plan de ned by each GenCo. We illustrate the methodology by means of an example depicting a zonal electricity market with two zones.

Date: 2013
New Economics Papers: this item is included in nep-com and nep-ene
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