Transmission Expansion Planning and Cost Allocation Under Market Environments

Abstract

An important component to be considered in electric power system expansion planning is the security of service that the system is able to provide. Under the market environment the effect of expansion on the market conditions also has to be regarded during the planning. This article proposes a new method for transmission expansion planning under market environments which considers global welfare, construction, and security enhancement cost. Finally, a proper method to share the cost of expansion fairly between all network agents is suggested. To investigate the validity of the method, it is applied to the modified Garver 6-bus test system for expansion.

Keywords:

• cost allocation
• cost of security enhancement
• electricity market
• expansion planning
• transmission expansion