1 research outputs found
Impact of Equipment Failures and Wind Correlation on Generation Expansion Planning
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