Reliability-based generation resource planning in electricity markets

Authors : Maziar Mirhosseini MOGHADDAM, Mohammad Hossein JAVIDI

Pages : 909-923

Doi:10.3906/elk-1202-57

View : 11 | Download : 10

Publication Date : 0000-00-00

Article Type : Research Paper

Abstract :This paper proposes a reliability-based competitive generation resource planning model in electricity markets. The Monte Carlo simulation method is applied to consider random outages of generation units and transmission lines as well as load uncertainty. In order to determine the optimal plan for installation of candidate generating units, the decisions of generation companies insert ignore into journalissuearticles values(GenCos); and the independent system operators insert ignore into journalissuearticles values(ISOs); are investigated. The method is based on an iterative process for simulating interactivity among ISOs and GenCos and is repeated until security and reliability constraints assumed by the ISO are fulfilled. In the proposed model, the ISO utilizes a new mechanism for capacity payments such that each GenCo will receive its incentive credits based on its role in improvement of system reliability. In other words, GenCos play indirect roles in system reliability enhancement. Simulation results confirm efficacy of the proposed generation expansion planning model when considering uncertainties in electricity markets.
Keywords : Competitive electricity market, generation resource planning, mixed integer programming, Monte Carlo simulation, random outages and uncertainty, system reliability