Generation and Transmission Capacity Expansion Planning in Deregulated Electricity Market

This paper addresses the integration of generation and transmission capacity expansion planning problems in a deregulated power market. Imperfect competition among electricity producers are modeled using Cournot game models. (Karush-Kuhn-Tucker) KKT conditions of electricity producers and grid owner in restriction with market clearing condition constitute a mixed complementarity problems (MCPs). The proposed approach is tested on simplified Iranian power system in which the Iranian power system is decomposed into the three main regions. For this simple test case, the prices, production volumes and utilization of transmission lines as well as present capacity expansion planning related to producer and grid owner are computed to show the impact of competitive market behavior on generation and transmission expansion decisions.

Keywords:

Electricity network , Nash equilibrium , Complementarity modeling , Gaming