- Title
- Transmission planning in deregulated power markets
- Creator
- Gunnaasankaraan, Harivina
- Relation
- University of Newcastle Research Higher Degree Thesis
- Resource Type
- thesis
- Date
- 2019
- Description
- Research Doctorate - Doctor of Philosophy (PhD)
- Description
- Deregulation of power industry has introduced competition in generation, distribution and transmission sectors to improve efficiency. Deregulation has brought many structural changes in transmission management thus creating a need for new economic policies, regulatory frameworks and financial instruments. This thesis addresses issues related to Transmission Expansion Planning (TEP) arising in different transmission management structures in deregulated power markets. In this thesis, TEP is formulated as an optimization problem for two different transmission management structures: Centralized Management and Decentralized Management. In the Centralized Management, a single regulatory body with an objective to maximize the social welfare is responsible for transmission planning. The optimal transmission expansion would be based on the trade-off between the longterm investment costs due to additional transmission facilities vs the short-term congestion cost due to inadequate transmission facilities. The TEP problem in centralized management is formulated as a mixed integer quadratic problem. Its solution is based on second order cone programming within Benders Decomposition method which is computationally more efficient compared to traditional Quadratic programming within Benders Decomposition method. An algorithm that combines Benders decomposition with local branching is also applied on the TEP to investigate the acceleration of Benders method. In the decentralized management, merchant transmission investors with an objective to maximize the profits are responsible for transmission planning. The Transmission expansion in decentralized management is formulated as a profit maximization problem of the transmission investors subject to spot market clearing optimization problem. This formulation results in a bi-level optimization problem which is then transformed into a non-convex optimization problem of the form quadratic objective function and quadratic constraints. Convex relaxation method is applied to get an approximate solution to the non-convex problem. The problem is approximated to a second order cone program and solved using primal-dual interior method. Literature review shows that the transmission expansion by Merchant investors in a decentralized management is less compared to that in a centralized management. To motivate the transmission merchants to expand towards the social optimal level as in Centralized Management, block congestion charges are proposed that are based on the increase in the surplus of the generators due to transmission expansion. Thus, TEP in decentralized management is formulated as an optimization problem with an objective to maximize the profits of the generators subject to block congestion charges that are shared with transmission investors. Previous work on profit maximization was based on fixed transmission investment costs that employed quadratic programming problem. In this formulation, transmission congestion charges are derived from the spot market optimization problem involving locational marginal prices resulting in a TEP formulation that is more complex than previous work. TEP is a mixed integer (0-1) quadratic programming problem. This formulation is suitable for markets such as PJM where network users purchase financial transmission rights at market rate and not the actual fixed investment costs. A payoff maximization method is proposed which is based on strategic bidding that includes FTR purchase by generators competing to meet system load. This competition is modeled as a game and is solved using Nash equilibrium. Spot prices in energy markets are highly volatile. As a result, market players are exposed to huge financial risks. One of the risk mitigation strategy for retailers is to exercise interruptible loads. A formulation for spot clearing mechanism in Energy markets that considers the exercise of interruptible load options by retailers is proposed.
- Subject
- power industry; deregulation; Transmission Expansion Planning; TEP; power markets; thesis by publication
- Identifier
- http://hdl.handle.net/1959.13/1412259
- Identifier
- uon:36451
- Rights
- Copyright 2019 Harivina Gunnaasankaraan
- Language
- eng
- Full Text
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