A Robust optimization approach to assess the effect of delays in the connection-to-the-grid time of new generation power plants over transmission expansion planning

Construction times of new power plants are subject to uncertainty in deregulated electricity markets and they have an important impact on the planning of the expansion of the transmission network. In this paper, we develop a model of transmission expansion planning that is based on Robust optimization and considers the uncertainty in the instant when new power plants are connected into the electricity grid. Using this transmission expansion planning model, we assess the impact of postponing the connection time of some new power plants over the system cost and the optimal network expansion plan. By obtaining the optimal solutions of the proposed model for different levels of robustness, we are able to rank the new power plants with respect to how much the delay of each project negatively affects the system cost. We illustrate our methodology and the performance of two solution approaches proposed to solve our model by using a 34-node stylized version of the main Chilean grid. In the case of the main Chilean grid, the results obtained indicate that some of the projects whose delays negatively affect the most to the system cost are the renewable power plants projected for the next ten years. This is important from the regulator viewpoint because it allows the assessment of renewable energy policies that accelerate the installation of renewable new power plants also in terms of their impact over the transmission expansion planning.

[1]  Robert J. Vanderbei,et al.  Robust Optimization of Large-Scale Systems , 1995, Oper. Res..

[2]  Sergio Maturana,et al.  A robust optimization approach to wine grape harvesting scheduling , 2010, Eur. J. Oper. Res..

[3]  Spiros H. Martzoukos,et al.  Optimal timing of transmission line investments in the face of uncertain demand: An option valuation approach , 1992 .

[4]  Scott A. Malcolm,et al.  Robust Optimization for Power Systems Capacity Expansion under Uncertainty , 1994 .

[5]  Ahmed H. El-Abiad,et al.  Transmission Planning Using Discrete Dynamic Optimizing , 1973 .

[6]  M. V. F. Pereira,et al.  A New Benders Decomposition Approach to Solve Power Transmission Network Design Problems , 2001, IEEE Power Engineering Review.

[7]  S. Salon,et al.  Transmission Network Planning Using Linear Programming , 1985, IEEE Transactions on Power Apparatus and Systems.

[8]  Goran Strbac,et al.  Fundamentals of Power System Economics: Kirschen/Power System Economics , 2005 .

[9]  Ruben Romero,et al.  A hierarchical decomposition approach for transmission network expansion planning , 1994 .

[10]  Afzal S. Siddiqui,et al.  Transmission Investment Timing and Sizing under Uncertainty , 2007 .

[11]  J. Contreras,et al.  Coalition formation in transmission expansion planning , 1999, IEEE Power Engineering Society. 1999 Winter Meeting (Cat. No.99CH36233).

[12]  Enzo Sauma,et al.  If you build it, he will come: Anticipative power transmission planning , 2013 .

[13]  D. Kirschen,et al.  Fundamentals of power system economics , 1991 .

[14]  Melvyn Sim,et al.  The Price of Robustness , 2004, Oper. Res..

[15]  S. Oren,et al.  Economic Criteria for Planning Transmission Investment in Restructured Electricity Markets , 2007, IEEE Transactions on Power Systems.

[16]  A. Monticelli,et al.  Transmission system expansion planning by simulated annealing , 1995, Proceedings of Power Industry Computer Applications Conference.

[17]  Antonio J. Conejo,et al.  Transmission expansion planning: a mixed-integer LP approach , 2003 .

[18]  Allen L. Soyster,et al.  Technical Note - Convex Programming with Set-Inclusive Constraints and Applications to Inexact Linear Programming , 1973, Oper. Res..

[19]  Grisselle Centeno,et al.  Stochastic optimization for power system configuration with renewable energy in remote areas , 2013, Ann. Oper. Res..

[20]  A. Ben-Tal,et al.  Adjustable robust solutions of uncertain linear programs , 2004, Math. Program..

[21]  Dimitris Bertsimas,et al.  A Robust Optimization Approach to Supply Chain Management , 2004, IPCO.

[22]  Cliff T. Ragsdale,et al.  A Simulated Annealing Genetic Algorithm for the Electrical Power Districting Problem , 2003, Ann. Oper. Res..

[23]  Arkadi Nemirovski,et al.  Robust solutions of uncertain linear programs , 1999, Oper. Res. Lett..

[24]  Ruben Romero,et al.  Transmission system expansion planning by an extended genetic algorithm , 1998 .

[25]  L. L. Garver,et al.  Transmission Network Estimation Using Linear Programming , 1970 .

[26]  Daniel Bienstock,et al.  Computing robust basestock levels , 2008, Discret. Optim..

[27]  E. Sauma Intertemporal Planning of Transmission Expansions in Restructured Electricity Markets , 2009 .

[28]  M. Shahidehpour,et al.  Market-based transmission expansion planning , 2004, IEEE Transactions on Power Systems.

[29]  S. Oren,et al.  Proactive planning and valuation of transmission investments in restructured electricity markets , 2006 .

[30]  Felix F. Wu,et al.  A kernel-oriented algorithm for transmission expansion planning , 2000 .