Document Type
Article
Publication Version
Accepted Manuscript
Publication Date
2011
Journal or Book Title
IEEE Transactions on Power Systems
Volume
26
Issue
4
First Page
2275
Last Page
2284
DOI
10.1109/TPWRS.2011.2107531
Abstract
Constraints in fuel supply, electricity generation, and transmission interact to affect the welfare of strategic generators and price-sensitive consumers. We consider a mixed integer bilevel programming model in which the leader makes capacity expansion decisions in the fuel transportation, generation, and transmission infrastructure of the electricity supply network to maximize social welfare less investment cost. Based on the leader's expansion decisions, the multiple followers including the fuel suppliers, ISO, and generation companies simultaneously optimize their respective objectives of cost, social welfare, and profit. The bilevel program is formulated as a mathematical program with complementarity constraints. The computational challenge posed by the discrete character of transmission expansions has been managed by multiple model reformulations. A lower bound provided by a nonlinear programming reformulation increases the efficiency of solving a binary variable reformulation to global optimality. A single-level optimization relaxation serves as a competitive benchmark to assess the effect of generator strategic operational behavior on the optimal capacity configuration.
Copyright Owner
IEEE
Copyright Date
2011
Language
en
File Format
application/pdf
Recommended Citation
Jin, Shan and Ryan, Sarah M., "Capacity Expansion in the Integrated Supply Network for an Electricity Market" (2011). Industrial and Manufacturing Systems Engineering Publications. 19.
https://lib.dr.iastate.edu/imse_pubs/19
Comments
This is a manuscript of an article from IEEE Transactions on Power Systems 26 (2011): 2275, doi: 10.1109/TPWRS.2011.2107531. Posted with permission.