Private planning of transmission expansion through cooperative games

From the social perspective, transmission planning has been broadly studied developing models that minimize expansion costs, subject to technical-economical restrictions that guarantee system security and stability. In a deregulated electric market, planning must allow the optimal development of the network at a minimum cost, based on economic and technical efficiency incentives, with proper reliability and quality of service levels, and adapted to the requirements of generation companies and consumers. This work studies the expansion of transmission systems from the private perspective, developing a static expansion model based on the interaction of market agents using cooperative game theory. The major results are the expanded transmission system and the agents involved in the expansion. It is illustrated for a small system and applied to the IEEE 24-bus system.