Impact of Equipment Failures and Wind Correlation on Generation Expansion Planning
Abstract
Generation expansion planning has become a complex problem within a deregulated electricity market environment due to all the uncertainties affecting the profitability of a given investment. Current expansion models usually overlook some of these uncertainties in order to reduce the computational burden. In this paper, we raise a flag on the importance of both equipment failures (units and lines) and wind power correlation on generation expansion decisions. For this purpose, we use a bilevel stochastic optimization problem, which models the sequential and noncooperative game between the generating company (GENCO) and the system operator. The upper-level problem maximizes the GENCO's expected profit, while the lower-level problem simulates an hourly market-clearing procedure, through which LMPs are determined. The uncertainty pertaining to failures and wind power correlation are characterized by a scenario set, and their impact on generation expansion decisions are quantified and discussed for a 24-bus power system.
Keywords
Cite
@article{arxiv.1406.5923,
title = {Impact of Equipment Failures and Wind Correlation on Generation Expansion Planning},
author = {Salvador Pineda and Juan M. Morales and Yi Ding and Jacob Oestegaard},
journal= {arXiv preprint arXiv:1406.5923},
year = {2014}
}