Open AccessImpact of technical operational details on generation expansion in oligopolistic power markets
Author(s) -
Nogales Adelaida,
Wogrin Sonja,
Centeno Efraim
Publication year - 2016
Publication title -
iet generation, transmission and distribution
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.92
H-Index - 110
eISSN - 1751-8695
pISSN - 1751-8687
DOI - 10.1049/iet-gtd.2015.1148
Subject(s) - oligopoly , power system simulation , software deployment , heuristic , computer science , operations research , key (lock) , electric power system , electricity generation , process (computing) , mathematical optimization , economics , power (physics) , microeconomics , engineering , cournot competition , physics , computer security , mathematics , quantum mechanics , artificial intelligence , operating system
Renewable generation technologies are expected to reach unprecedented penetration levels in a number of electric power systems. The increased deployment of these renewable technologies is changing the unit commitment of the rest of generation facilities, increasing the need for cycling. As a result, operation‐related issues and their costs become more relevant for an adequate analysis of generation expansion problems. In this study, the authors propose a generation expansion model including an oligopolistic market representation based on an equilibrium approach. It introduces key operation‐related constraints, such as minimum stable output, start‐ups and shut‐downs; and short‐term operating costs, such as commitment, start‐up and shut‐down costs. The proposed model furthermore considers the discrete nature of capacity investment decisions. The authors also propose a heuristic method for solving the arising equilibrium problem, by providing an efficient starting point to the diagonalisation process. This heuristic can lead to reductions of up to 90% in computational time. Finally, case studies are presented in order to illustrate the importance of considering both operational details and a market framework when making generation expansion planning decisions.