This paper presents a Mixed Integer Non-Linear Programming approach for long-term transmission expansion planning problem in a Locational Marginal Pricing (LMP) based electricity market. The problem formulation consists of maximization of social welfare of market participants (Generation Companies/ Generator Serving Traders and Distribution companies/ Distribution Serving Traders) and minimization of transmission investment cost of Transmission Company, subject to load flows equalities, network congestion inequalities and variable bounds. The modeling of power flow and network congestion constraints has been carried out using DC as well as AC approaches considering a number of seasons of market functioning. The proposed model is tested on Garver’s 6-bus and IEEE 24-bus systems. It has been concluded that the profile of LMPs over the system buses tend to equalize after transmission expansion planning both in DC and AC approaches. However the results obtained for transmission expansion planning of AC approach largely differ from that of the DC approach. The DC modeling is based on network approximations, which does not lead to accurate results. Hence, it has also been concluded that the AC modeling for transmission expansion planning is able to ensure a fair and nondiscriminatory electricity market planning and operation.

Login to Download PDF

Please login with your Paper ID and password to access the full PDF.

🔑 Login to Download