Strategic Generation Investment Using a Complementarity Approach

Jalal Kazempour; Antonio J. Conejo; Carlos Ruiz

doi:10.1109/TPWRS.2010.2069573

Strategic Generation Investment Using a Complementarity Approach

Jalal Kazempour, Antonio J. Conejo, Carlos Ruiz

University of Castilla-La Mancha

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

This paper provides a methodology to assist a strategic producer in making informed decisions on generation investment. A single target year is considered with demand variations modeled through blocks. The strategic behavior of the producer is represented through a bilevel model: the upper-level considers both investment decisions and strategic production actions and the lower-level corresponds to market clearing. Prices are obtained as dual variables of power balance equations. Rival uncertainties (on offering and investment) are characterized through scenarios. The resulting model is a large-scale mixed-integer LP problem solvable using currently available branch-and-cut techniques. Results pertaining to an illustrative example and a case study are reported and discussed.

Original language	English
Journal	IEEE Transactions on Power Systems
Volume	26
Issue number	2
Pages (from-to)	940-948
Number of pages	9
ISSN	0885-8950
DOIs	https://doi.org/10.1109/TPWRS.2010.2069573
Publication status	Published - 2011
Externally published	Yes

Keywords

Electrical and Electronic Engineering
Energy Engineering and Power Technology
Generation investment
mathematical program with equilibrium constraints (MPEC)
strategic producer
uncertainty
Bilevel
Branch-and-cut techniques
Demand variations
Illustrative examples
Informed decision
Investment decisions
LP problem
Market clearing
Mathematical program with equilibrium constraints
Mixed-integer
Power balance equations
Strategic Behavior
Investments
power markets
integer programming
investment
linear programming
branch-and-cut techniques
strategic generation investment
investment decisions
market clearing
power balance equations
rival uncertainties
large-scale mixed-integer LP problem
Mathematical model
Production
Uncertainty
Planning
Stochastic processes
Optimization
ENGINEERING,
RESTRUCTURED ELECTRICITY MARKETS
EXPANSION
Power system management, operation and economics
Optimisation techniques

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10.1109/TPWRS.2010.2069573

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title = "Strategic Generation Investment Using a Complementarity Approach",

abstract = "This paper provides a methodology to assist a strategic producer in making informed decisions on generation investment. A single target year is considered with demand variations modeled through blocks. The strategic behavior of the producer is represented through a bilevel model: the upper-level considers both investment decisions and strategic production actions and the lower-level corresponds to market clearing. Prices are obtained as dual variables of power balance equations. Rival uncertainties (on offering and investment) are characterized through scenarios. The resulting model is a large-scale mixed-integer LP problem solvable using currently available branch-and-cut techniques. Results pertaining to an illustrative example and a case study are reported and discussed.",

keywords = "Electrical and Electronic Engineering, Energy Engineering and Power Technology, Generation investment, mathematical program with equilibrium constraints (MPEC), strategic producer, uncertainty, Bilevel, Branch-and-cut techniques, Demand variations, Illustrative examples, Informed decision, Investment decisions, LP problem, Market clearing, Mathematical program with equilibrium constraints, Mixed-integer, Power balance equations, Strategic Behavior, Investments, power markets, integer programming, investment, linear programming, branch-and-cut techniques, strategic generation investment, investment decisions, market clearing, power balance equations, rival uncertainties, large-scale mixed-integer LP problem, Mathematical model, Production, Uncertainty, Planning, Stochastic processes, Optimization, ENGINEERING,, RESTRUCTURED ELECTRICITY MARKETS, EXPANSION, Power system management, operation and economics, Optimisation techniques",

author = "Jalal Kazempour and Conejo, \{Antonio J.\} and Carlos Ruiz",

year = "2011",

doi = "10.1109/TPWRS.2010.2069573",

language = "English",

volume = "26",

pages = "940--948",

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issn = "0885-8950",

publisher = "Institute of Electrical and Electronics Engineers Inc.",

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T1 - Strategic Generation Investment Using a Complementarity Approach

AU - Kazempour, Jalal

AU - Conejo, Antonio J.

AU - Ruiz, Carlos

PY - 2011

Y1 - 2011

N2 - This paper provides a methodology to assist a strategic producer in making informed decisions on generation investment. A single target year is considered with demand variations modeled through blocks. The strategic behavior of the producer is represented through a bilevel model: the upper-level considers both investment decisions and strategic production actions and the lower-level corresponds to market clearing. Prices are obtained as dual variables of power balance equations. Rival uncertainties (on offering and investment) are characterized through scenarios. The resulting model is a large-scale mixed-integer LP problem solvable using currently available branch-and-cut techniques. Results pertaining to an illustrative example and a case study are reported and discussed.

AB - This paper provides a methodology to assist a strategic producer in making informed decisions on generation investment. A single target year is considered with demand variations modeled through blocks. The strategic behavior of the producer is represented through a bilevel model: the upper-level considers both investment decisions and strategic production actions and the lower-level corresponds to market clearing. Prices are obtained as dual variables of power balance equations. Rival uncertainties (on offering and investment) are characterized through scenarios. The resulting model is a large-scale mixed-integer LP problem solvable using currently available branch-and-cut techniques. Results pertaining to an illustrative example and a case study are reported and discussed.

KW - Electrical and Electronic Engineering

KW - Energy Engineering and Power Technology

KW - Generation investment

KW - mathematical program with equilibrium constraints (MPEC)

KW - strategic producer

KW - uncertainty

KW - Bilevel

KW - Branch-and-cut techniques

KW - Demand variations

KW - Illustrative examples

KW - Informed decision

KW - Investment decisions

KW - LP problem

KW - Market clearing

KW - Mathematical program with equilibrium constraints

KW - Mixed-integer

KW - Power balance equations

KW - Strategic Behavior

KW - Investments

KW - power markets

KW - integer programming

KW - investment

KW - linear programming

KW - branch-and-cut techniques

KW - strategic generation investment

KW - investment decisions

KW - market clearing

KW - power balance equations

KW - rival uncertainties

KW - large-scale mixed-integer LP problem

KW - Mathematical model

KW - Production

KW - Uncertainty

KW - Planning

KW - Stochastic processes

KW - Optimization

KW - ENGINEERING,

KW - RESTRUCTURED ELECTRICITY MARKETS

KW - EXPANSION

KW - Power system management, operation and economics

KW - Optimisation techniques

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DO - 10.1109/TPWRS.2010.2069573

M3 - Journal article

SN - 0885-8950

VL - 26

SP - 940

EP - 948

JO - IEEE Transactions on Power Systems

JF - IEEE Transactions on Power Systems

IS - 2

ER -

Strategic Generation Investment Using a Complementarity Approach

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Keywords

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