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Cost-Optimal Power System Extension under Flow-Based Market Coupling

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  • Hagspiel, Simeon

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Jägemann, Cosima

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Lindenberger, Dietmar

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Brown, Tom

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Cherevatskiy, Stanislav

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Tröster, Eckehard

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

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    Abstract

    Electricity market models, implemented as dynamic programming problems, have been applied widely to identify possible pathways towards a cost-optimal and low carbon electricity system. However, the joint optimization of generation and transmission remains challenging, mainly due to the fact that diff erent characteristics and rules apply to commercial and physical exchanges of electricity in meshed networks. This paper presents a methodology that allows to optimize power generation and transmission infrastructures jointly through an iterative approach based on power transfer distribution factors (PTDFs). As PTDFs are linear representations of the physical load flow equations, they can be implemented in a linear programming environment suitable for large scale problems. The algorithm iteratively updates PTDFs when grid infrastructures are modifi ed due to cost-optimal extension and thus yields an optimal solution with a consistent representation of physical load flows. The method is first demonstrated on a simpli fied three-node model where it is found to be robust and convergent. It is then applied to the European power system in order to fi nd its cost-optimal development under the prescription of strongly decreasing CO2 emissions until 2050.

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    Bibliographic Info

    Paper provided by Energiewirtschaftliches Institut an der Universitaet zu Koeln in its series EWI Working Papers with number 2013-9.

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    Length: 25 pages
    Date of creation: 22 May 2013
    Date of revision:
    Handle: RePEc:ris:ewikln:2013_009

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    Related research

    Keywords: Power system planning; Power generation and transmission; Iterative linear optimization; PTDF; Electricity market model; Power flow model; Flow-based market coupling;

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    References

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    1. Fürsch, Michaela & Hagspiel, Simeon & Jägemann, Cosima & Nagl, Stephan & Lindenberger, Dietmar & Tröster, Eckehard, 2013. "The role of grid extensions in a cost-efficient transformation of the European electricity system until 2050," Applied Energy, Elsevier, vol. 104(C), pages 642-652.
    2. Richter, Jan, 2011. "DIMENSION - A Dispatch and Investment Model for European Electricity Markets," EWI Working Papers 2011-3, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
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    4. Nagl, Stephan & Fürsch, Michaela & Paulus, Moritz & Richter, Jan & Trüby, Johannes & Lindenberger, Dietmar, 2011. "Energy policy scenarios to reach challenging climate protection targets in the German electricity sector until 2050," Utilities Policy, Elsevier, vol. 19(3), pages 185-192.
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    6. Wu, F.F & Zheng, F.L. & Wen, F.S., 2006. "Transmission investment and expansion planning in a restructured electricity market," Energy, Elsevier, vol. 31(6), pages 954-966.
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    15. repec:hal:journl:halshs-00617026 is not listed on IDEAS
    16. Fürsch, Michaela & Hagspiel, Simeon & Jägemann, Cosima & Nagl, Stephan & Lindenberger, Dietmar & Tröster, Eckehard, 2012. "The role of grid extensions in a cost-efficient transformation of the European electricity system until 2050," EWI Working Papers 2012-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
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