RT - Journal Article
T1 - Regulatory Impacts on Distributed Generation and Upstream Transmission Substation Expansion Planning: A Novel Stochastic Bi-level Model
JF - IUST
YR - 2017
JO - IUST
VO - 13
IS - 2
UR - http://ijeee.iust.ac.ir/article-1-1050-en.html
SP - 123
EP - 134
K1 - Capacity Payment
K1 - Firm Contract
K1 - Mathematical Programing with Equilibrium Constraints (MPEC)
K1 - Mixed-Integer Linear Programming (MILP)
K1 - Wind Power.
AB - In this paper, a novel framework is proposed to study impacts of regulatory incentive on distributed generation (DG) investment in sub-transmission substations, as well as upgrading of upstream transmission substations. Both conventional and wind power technologies are considered here. Investment incentives are fuel cost, firm contracts, capacity payment and investment subsidy relating to wind power. The problem is modelled as a bi-level stochastic optimization problem, where the upper level consists of investor's decisions maximizing its own profit. Both market clearing and decision on upgrading of transmission substation aiming at minimizing the total cost are considered in the lower level. Due to non-convexity of the lower level and impossibility of converting to single level problem (i.e. mathematical programming with equilibrium constraints (MPEC)), an algorithm combing enumeration and mathematical optimization is used to tackle with the non-convexity. For each upgrading strategy of substations, a stochastic MPEC, converted to a mixed integer linear programming (MILP) is solved. The proposed model is examined on a six-bus and an actual network. Numerical studies confirm that the proposed model can be used for analysing investment behaviour of DGs and substation expansion.
LA eng
UL http://ijeee.iust.ac.ir/article-1-1050-en.html
M3 10.22068/IJEEE.13.2.123
ER -