Impact of equipment failures and wind correlation on generation expansion planning

S. Pineda, J.M. Morales, Y. Ding, J. Østergaard

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Generation expansion planning has become a complex problem within a deregulated electricity market environment due to all the uncertainties affecting the profitability of a given investment. Current expansion models usually overlook some of these uncertainties in order to reduce the computational burden. In this paper, we raise a flag on the importance of both equipment failures (units and lines) and wind power correlation on generation expansion decisions. For this purpose, we use a bilevel stochastic optimization problem, which models the sequential and noncooperative game between the generating company (GENCO) and the system operator. The upper-level problem maximizes the GENCO's expected profit, while the lower-level problem simulates an hourly market-clearing procedure, through which LMPs are determined. The uncertainty pertaining to failures and wind power correlation is characterized by a scenario set, and its impact on generation expansion decisions is quantified and discussed for a 24-bus power system.
Original languageEnglish
JournalElectric Power Systems Research
Volume116
Pages (from-to)451-458
Number of pages8
ISSN0378-7796
DOIs
Publication statusPublished - 2014

Keywords

  • Generation expansion
  • Optimal location
  • Bilevel programming
  • Stochastic programming
  • Market clearing
  • Equipment failures

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