An Auction Framework to Integrate Dynamic Transmission Expansion Planning and Pay-as-bid Wind Connection Auctions

Niall Farrell, Mel Devine and Alireza Soroudi

No WP523, Papers from Economic and Social Research Institute (ESRI)

Abstract: Efficient renewables deployment requires the minimisation of both internal generation costs and external transmission expansion planning (TEP) costs. Competitive payas-bid connection auctions allow wind energy generators to reveal their costs of generation such that internal generation costs may be minimised. TEP costs have not been incorporated into such auctions to date. Integrating these procedures may allow for a global minimisation of internal generation and external TEP costs over many time periods. This paper develops an auction mechanism and associated modelling framework to carry this out. The contributions of this framework are verified using a numerical example. Our results show that ignoring generation costs in transmission expansion planning has quantifiable economic consequences, while traditional pay-as-bid auctions can benefit from incorporating features associated with TEP, such as multi-period optimisation. Full integration of both modelling frameworks leads to efficiency improvements, both in terms of reduced investor rentseeking and a more efficient deployment path.

Date: 2016-01
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.esri.ie/pubs/WP523.pdf (application/pdf)

Related works:
Journal Article: An auction framework to integrate dynamic transmission expansion planning and pay-as-bid wind connection auctions (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:wp523

Access Statistics for this paper

More papers in Papers from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Burns ().