International Journal of Control, Automation, and Systems

Institute of Control, Robotics and Systems (제어로봇시스템학회)
권호 표지

Economic Evaluation of Transmission Expansion for Investment Incentives in a Competitive Electricity Market

  • Fischer, Robert (Department of Electrical and Computer Engineering, North Dakota State University, Fargo, USA) ;
  • Joo, Sung-Kwan (School of Electrical Engineering, Korea University)
  • Published : 2008.10.31
Download PDF
⟨ Previous Next ⟩

Abstract

With the shift of the electric power industry from a regulated monopoly structure to a competitive market environment, the focus of the transmission expansion planning has been moving from reliability-driven transmission expansion to market-based transmission expansion. In market-based transmission expansion, however, a growing demand for electricity, an increasing number of transmission bottlenecks, and the falling levels of transmission investment have created the need for an incentive to motivate investors. The expectation of profit serves as a motivational factor for market participants to invest in transmission expansion in a competitive market. To promote investment in transmission expansion, there is an increasing need for a systematic method to examine transmission expansion for investment incentives from multiple perspectives. In this paper, the transmission expansion problem in a competitive market environment is formulated from ISO and investors' perspectives. The proposed method uses parametric analysis to analyze benefits for investors to identify the most profitable location and amount for transmission addition. Numerical results are presented to demonstrate the effectiveness of the proposed method.

Keywords

References

  1. L. L. Garver, "Transmission network estimation using linear programming," IEEE Trans. on Power Apparatus and Systems, vol. PAS-89, no. 7, pp. 1688-1697, September 1970 https://doi.org/10.1109/TPAS.1970.292825
  2. S. T. Y. Lee, K. L. Hocks, and E. Hnyilicza, "Transmission expansion of branch-and-bound integer programming with optimal cost-capacity curves," IEEE Trans. on Power Apparatus and Systems, vol. PAS-93, pp. 1390-1400, August 1974 https://doi.org/10.1109/TPAS.1974.293869
  3. C. Dechamps and E. Jamoulle, "Interactive computer program for planning the expansion of meshed transmission networks," Elect. Power & Energy System, vol. 2, no. 2, pp. 103-108, April 1980 https://doi.org/10.1016/0142-0615(80)90016-2
  4. A. Monticelli, A. Santos, Jr, M. V. F. Pereira, S. H. Cunha, B. J. Parker, and J. C. G. Praca, "Interactive transmission network planning using a least-effort criterion," IEEE Trans. on Power Apparatus and Systems, vol. PAS-101, pp. 3919-3925, October 1982 https://doi.org/10.1109/TPAS.1982.317043
  5. M. V. F. Pereira and L. M. V. G. Pinto, "Application of sensitivity analysis of load supplying capacity to interactive transmission expansion planning," IEEE Trans. on Power Apparatus and Systems, vol. PAS-104, pp. 381-389, February 1985 https://doi.org/10.1109/TPAS.1985.319053
  6. R. Romero and A. Monticelli, "A hierarchical decomposition approach for transmission network expansion planning," IEEE Trans. on Power Systems, vol. 9, no. 1, pp. 373-380, February 1994 https://doi.org/10.1109/59.317588
  7. S. Kang, T. Tran, J. Choi, J. Cha, D. Rho, and R. Billinton "The best line choice for transmission system expansion planning on the side of the highest reliability level," KIEE J. Electr. Eng. Technol., vol. 4-A, no. 2, pp. 84-90, 2004
  8. T. Tran, J. Choi, D. Jeon, J. Chu, R. Thomas, and R. Billinton "A study on optimal reliability criterion determination for transmission system expansion planning," KIEE J. Electr. Eng. Technol., vol. 5-A , no. 1, pp. 62-69, 2005
  9. H. A. Gil, E. L. da Silva, and F. D. Galiana, "Modeling competition in transmission expansion," IEEE Trans. on Power Systems, vol. 17, no. 4, November 2002
  10. N. S. Rau, "Transmission congestion and expansion under regional transmission organizations," IEEE Power Engineering Review, vol. 22, no. 9, pp. 47-49, September 2002
  11. G. B. Shrestha and P. A. J. Fonseka, "Congestion- driven transmission expansion in competitive power markets," IEEE Trans. on Power Systems, vol. 19, no. 3, pp. 1658-1666, August 2004 https://doi.org/10.1109/TPWRS.2004.831701
  12. R. Fang and D. J. Hill, "A new strategy for transmission expansion in competitive electricity markets," IEEE Trans. on Power Systems, vol. 18, no. 1, pp. 374-380, February 2003 https://doi.org/10.1109/TPWRS.2002.807083
  13. G. Latorre, R. D. Cruz, J. M. Areiza, and A. Villegas, "Classification of publications and models on transmission expansion planning," IEEE Trans. on Power Systems, vol. 18, no. 2, pp. 938-946, May 2003 https://doi.org/10.1109/TPWRS.2003.811168
  14. Transmission Economic Assessment Methodology (TEAM), http://caiso.com
  15. D. Kirschen and G. Strbac, Fundamentals of Power System Economics, John Wiley & Sons, New York, 2004
  16. A. L. Ott, "Experience with PJM market operation, system design, and implementation," IEEE Trans. on Power Systems, vol. 18, pp. 528-534, May 2003 https://doi.org/10.1109/TPWRS.2003.810698
  17. F. S. Hillier and G. J. Lieberman, Introduction to Operations Research, McGraw-Hill, 2001
  18. Reliability Test System Task Force of the Application of Probability Methods Subcommittee, "IEEE reliability test system," IEEE Trans. on Power Apparatus and Systems, vol. PAS-98, no. 3, pp. 2047-2054, November/ December 1979 https://doi.org/10.1109/TPAS.1979.319398
  19. California Energy Commission Homepage, http://www.energy.ca.gov