Optimal generation capacity allocation and network expansion signaling using OPF

This paper presents a novel method of allocating new generation capacity within existing grid using optimal power flow (OPF). New generation capacity and connections to external networks are modelled as generators with quadratic cost functions. This allows preferences to be expressed regarding the location of new capacity and a focus on a specific part of the network whilst, at the same time, considering the technical and economic impact of exports and imports of power on the broader network. Sequential quadratic programming (SQP) is used to solve the OPF as it produces signals that can be used in planning mechanisms for the efficient development of the network.