Valuation of Flexible Transmission Investment Options Under Uncertainty

Significant uncertainty surrounds the future development of electricity systems, primarily in terms of size, location and type of new renewable generation to be connected. In this paper we assess the potential for flexible network technologies, such as phase-shifting transformers, and non-network so...

Full description

Saved in:
Bibliographic Details
Published in:IEEE transactions on power systems 2015-03, Vol.30 (2), p.1047-1055
Main Authors: Konstantelos, Ioannis, Strbac, Goran
Format: Article
Language:English
Subjects:
Benders decomposition
Cost accounting
Electric power generation
Electric utilities
Electricity
Energy storage
Equations
Financing
Investment
Mathematical model
Networks
Planning
Stochastic processes
stochastic programming
Strategy
transmission expansion planning
Uncertainty
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Significant uncertainty surrounds the future development of electricity systems, primarily in terms of size, location and type of new renewable generation to be connected. In this paper we assess the potential for flexible network technologies, such as phase-shifting transformers, and non-network solutions, such as energy storage and demand-side management, to constitute valuable interim measures within a long-term planning strategy. The benefit of such flexible assets lies not only in the transmission services provided but also in the way they can facilitate and de-risk subsequent decisions by deferring commitment to capital-intensive projects until more information on generation development becomes available. A novel stochastic formulation for transmission expansion planning is presented that includes consideration of investment in these flexible solutions. The proposed framework is demonstrated with a case study on the IEEE-RTS where flexible technologies are shown to constitute valuable investment options when facing uncertainties in future renewable generation development.
ISSN:0885-8950
1558-0679
DOI:10.1109/TPWRS.2014.2363364