Transmission expansion planning in deregulated electricity markets for increased wind power penetration

In this paper, a model for transmission expansion planning (TEP) in deregulated electricity markets is developed, considering transmission congestion, wind power integration and double-sided bidding power-pool operation for both generation and demand. A compromise between the congestion revenue and the investment cost is used to determine the optimal expansion scheme, considering the outage rates of transmission lines. Both the level of congestion and the price deviation in the network are used as the driving indicators for the need of network expansion. The uncertainty in wind power generation introduces the probabilistic locational marginal prices (LMPs) and the estimated congestion revenue for a specific system configuration. The proposed TEP approach is applied on Garver´s six bus system and the planning schemes results are assessed.