Evaluation of transfer capabilities of transmission systems in competitive environments

The main objective of this work is to propose a new methodology to determine the best points in the system to add reinforcements of the transmission network and to add new agents (sellers and buyers), in order to maximize the available transfer capability (ATC), without violating a pre-established reliability level. In the process, the ATC probability density function is determined considering uncertainties from equipment unavailabilities. The proposed algorithm uses Non-sequential Monte Carlo simulation to select system state and Linear Programming with a DC Power Flow model to analyze and optimize each selected state. The IEEE reliability test system is used to illustrate the methodology.