Reliability and cost tradeoff in multiarea power system generation expansion using dynamic programming and global decomposition

This paper proposes an optimization procedure for generation expansion and placement considering generation reliability in multiarea power systems. The objective is to obtain a suitable tradeoff between system reliability and cost. In this process, reliability evaluation is performed using the concept of global decomposition. The prospective generation locations are preselected, but the magnitude of generation located in each area is determined by an optimization procedure. The structure of global decomposition is exploited to simplify the problem and solve it using dynamic programming. The method is illustrated by application to a three-area power system and also implemented for an actual twelve-area power system