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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Hagspiel, Simeon & Jägemann, Cosima & Lindenberger, Dietmar & Brown, Tom & Cherevatskiy, Stanislav & Tröster, Eckehard, 2013. "Cost-Optimal Power System Extension under Flow-Based Market Coupling," EWI Working Papers 2013-9, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    • Handle: RePEc:ris:ewikln:2013_009
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    References listed on IDEAS

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    More about this item

    Keywords

    Power system planning; Power generation and transmission; Iterative linear optimization; PTDF; Electricity market model; Power flow model; Flow-based market coupling;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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