Analysis of a variant of development of the unified electrical network with the market model

The unbundling of the electricity business has raised new challenges that the restructured industry faces. Transmission system provides nondiscriminatory, effective and competitive environment for participants. Hence, the traditional cost-minimization formulation is no longer suitable to solve transmission expansion problem in market conditions. To evaluate efficiency of network expansion the comparison of investment and social welfare is needed. This requires a coordinated approach to the optimization of the generation and transmission operation and development. The model considered in the paper allows taking into account discrete nature of investment, different operating conditions while modeling market with perfect competition. The proposed methodology is applied to the network of Unified energy systems of Russia based on the real data.