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A Robust optimization approach to assess the effect of delays in the connection-to-the-grid time of new generation power plants over transmission expansion planning

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  • Enzo Sauma
  • Fernando Traub
  • Jorge Vera

Abstract

Construction times of new power plants are subject to uncertainty in deregulated electricity markets and they have an important impact on the planning of the expansion of the transmission network. In this paper, we develop a model of transmission expansion planning that is based on Robust optimization and considers the uncertainty in the instant when new power plants are connected into the electricity grid. Using this transmission expansion planning model, we assess the impact of postponing the connection time of some new power plants over the system cost and the optimal network expansion plan. By obtaining the optimal solutions of the proposed model for different levels of robustness, we are able to rank the new power plants with respect to how much the delay of each project negatively affects the system cost. We illustrate our methodology and the performance of two solution approaches proposed to solve our model by using a 34-node stylized version of the main Chilean grid. In the case of the main Chilean grid, the results obtained indicate that some of the projects whose delays negatively affect the most to the system cost are the renewable power plants projected for the next ten years. This is important from the regulator viewpoint because it allows the assessment of renewable energy policies that accelerate the installation of renewable new power plants also in terms of their impact over the transmission expansion planning. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Enzo Sauma & Fernando Traub & Jorge Vera, 2015. "A Robust optimization approach to assess the effect of delays in the connection-to-the-grid time of new generation power plants over transmission expansion planning," Annals of Operations Research, Springer, vol. 229(1), pages 703-741, June.
    • Handle: RePEc:spr:annopr:v:229:y:2015:i:1:p:703-741:10.1007/s10479-015-1833-5
    DOI: 10.1007/s10479-015-1833-5
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    References listed on IDEAS

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    1. Bohle, Carlos & Maturana, Sergio & Vera, Jorge, 2010. "A robust optimization approach to wine grape harvesting scheduling," European Journal of Operational Research, Elsevier, vol. 200(1), pages 245-252, January.
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    6. Enzo Sauma & Shmuel Oren, 2006. "Proactive planning and valuation of transmission investments in restructured electricity markets," Journal of Regulatory Economics, Springer, vol. 30(3), pages 358-387, November.
    7. Enzo Sauma & Shmuel Oren, 2006. "Proactive planning and valuation of transmission investments in restructured electricity markets," Journal of Regulatory Economics, Springer, vol. 30(3), pages 261-290, November.
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    10. Pozo, David & Contreras, Javier & Sauma, Enzo, 2013. "If you build it, he will come: Anticipative power transmission planning," Energy Economics, Elsevier, vol. 36(C), pages 135-146.
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    Cited by:

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    2. Güner, Yusuf Emre, 2018. "The improved screening curve method regarding existing units," European Journal of Operational Research, Elsevier, vol. 264(1), pages 310-326.

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