Allocation of generation capacity reserve considering the transmission network

Summary form only given. This work presents a methodology for calculating the optimal generation capacity reserve and siting in power systems planning. The proposed methodology is based on a least-cost planning approach which considers along the planning horizon, the capacity reserve investment costs and the operational expected costs, comprising thermal generation and interruption costs. This problem is solved by using the Benders decomposition technique in which investment and operation subproblems solutions are obtained iteratively and separately thus allowing the use of tailor-made algorithms for each subproblem. The operation subproblem corresponds to a probabilistic evaluation of the minimum operation cost in composite generation/transmission systems, in which the system states are selected through Monte Carlo simulation or state enumeration and the system performance is analysed by a nonlinear optimal power flow solved by an interior point algorithm. The proposed methodology is illustrated in a case study with a modification of the IEEE Reliability Test System (MRTS).