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.

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.

Copyright Owner

IEEE

Language

en

File Format

application/pdf

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