Strategic interaction study between generation and transmission expansion planning with game-theory

Abstract

Due to the unbundling of power generation and transmission in the restructured power system, the coordination between generation expansion planning and transmission expansion planning has become a new challenge for both generation companies and transmission companies. In this article, a single-stage deterministic model is proposed to study the strategic interaction between generation and transmission enterprises. The Cournot model is used to simulate the expansion behaviours for generation and transmission enterprises. Equilibrium is obtained using the approach for the mixed complementarity problem, and the proposed model is applied to a three-bus system.

Keywords:

• game theory
• generation expansion planning
• transmission expansion planning
• ISO's market clearing optimization model
• mixed complementarity problem

Acknowledgements

The authors acknowledge the financial support provided from the Energy Foundation with contract number grant 70671041. They also acknowledge the helpful comments and suggestions of the reviewers, which have improved the presentation.