Transmission Congestion and Competition on Power Generation Expansion

Generation expansion planning involves decisions on location and capacity of new generation, which may lead to adding or relieving congestion in transmission lines and to increasing or reducing competition in deregulated markets. Generation expansion may encounter congestion in the transmission network by constrained single-line flows as well as flowgate transfer capabilities. In this paper, a model to study the interaction between competition and transmission congestion on power generation expansion is proposed. The generation expansion problem is modeled as a Cournot competition game. Network transmission constraints are included in the optimal generation expansion problem to comply with power flow limits. Results from a five-bus power network and the IEEE 24-bus system are presented and discussed