Sequential coordination of transmission expansion planning with strategic generation investments

This paper proposes mathematical models for sequential coordination of transmission expansion planning with strategic generation investments. The proactive and reactive coordinations are modeled and studied. The interaction between transmission company (Transco) and strategic generation companies (Gencos) is modeled using the sequential-move game. This is while the interaction between the strategic Gencos is modeled as a simultaneous-move game. In the proactive coordination, the Transco expands its future transmission capacities taking into account the strategic investments by Gencos. In the reactive coordination, strategic Gencos move first and expand their future generation capacities and then Transco expands the transmission capacity. The proactive coordination is modeled as a mixed-integer bilevel linear program (MIBLP) and the reactive coordination is modeled as a mixed-integer linear program (MILP). The MIBLP has binary variables in both upper and lower levels. The Moore-Bard algorithm is parallelized and used to solve the MIBLP. The mathematical models and the parallelized Moore-Bard algorithm are tested on 3-bus and 6-bus example systems and the modified IEEE-RTS96. Also, the IEEE 118-bus test system is studied using a heuristic version of the Moore-Bard algorithm.