A CO-OPTIMIZATION MODEL OF GENERATION AND TRANSMISSION INVESTMENTS WITH MARKET-CLEARING EQUILIBRIUM IN ELECTRICITY MARKET

Abstract

In this paper, we have considered co-optimization models formulated as single-level mixed complementarity problems and bi-level programming problems. In the upper level of this bi-level problem, the system operator decides on the transmission expansion plans while anticipating the decisions in the lower level of the problem. The lower level problems present models of generation expansion and oligopolistic competition among power generators, where we examine perfect competition models to Cournot game among generators. This model is essentially an economic equilibrium problem for electricity markets that is defined by the optimality conditions that examine system operator's and generators' expansion behavior along with supply-demand balance in the market. These models will be handful for planning generation/transmission expansions, and analyzing the relations between these expansions and the market outcomes.