Market-driven dynamic transmission expansion planning

We present a novel transmission expansion planning model that explicitly considers a multi-year planning horizon. The proposed formulation is a mixed-integer linear problem that can be solved using commercially available software. The algorithm determines the best overall transmission expansion plan, reflecting both investment and operational costs. To analyze the results obtained from the model, we use a set of efficiency metrics to appraise the effect of the expansion among generators and demands, as well as congestion metrics to measure changes in nodal prices and line congestions. This paper also provides a case study that considers the expansion plan for a transmission system based on the one of mainland Spain.