Transmission Expansion Planning and Cost Allocation Under Market Environments

Abstract

Abstract-- An important component to be considered in electric power system<br><br>expansion planning is the security of service that the system is able to provide. Under<br><br>the market environment the effect of expansion on the market conditions also has to<br><br>be regarded during the planning. This paper proposes a new method for transmission<br><br>expansion planning under market environment which considers global welfare,<br><br>construction and security enhancement cost. Finally a proper method to share the cost<br><br>of expansion fairly between all network agents is suggested. To investigate the validity<br><br>of the method, it is applied to the modified “Garver 6-bus test system for expansion”.<br><br>Index Terms--Transmission expansion, electricity market, expansion planning, cost<br><br>of security enhancement, cost allocation