What is the cost of disregarding market feedback in transmission expansion planning?

Isaac Camilo Gonzalez-Romero, Sonja Wogrin, Tomas Gomez

Research output: Chapter in Book/Report/Conference proceedingConference paperpeer-review


Under the current European market environment, transmission companies have to decide network expansion by maximizing social welfare. However, generation companies (GENCOs) decide their capacity expansion with the aim of maximizing their own profit. This process, in addition to the increasing penetration of renewable energy, storage and distributed generation, might represent a rupture between short and long-term signals. Therefore, this paper proposes a bi-level formulation for the generation and transmission coordination problem (GEPTEP). We consider a proactive framework in which a centralized TSO represents the upper level while the decentralized GENCOs, that trade in the market, represent the lower level. A case study is presented to evaluate different policy planning objectives. Additionally, the planning results of the bilevel framework (considering both perfect competition and Cournot oligopoly in the lower level) are compared with a traditional cost minimization framework.

Original languageEnglish
Title of host publicationSEST 2019 - 2nd International Conference on Smart Energy Systems and Technologies
PublisherInstitute of Electrical and Electronics Engineers
ISBN (Electronic)9781728111568
Publication statusPublished - Sept 2019
Externally publishedYes
Event2nd International Conference on Smart Energy Systems and Technologies: SEST 2019 - Porto, Portugal
Duration: 9 Sept 201911 Sept 2019

Publication series

NameSEST 2019 - 2nd International Conference on Smart Energy Systems and Technologies


Conference2nd International Conference on Smart Energy Systems and Technologies


  • co-planning
  • Cournot
  • GEP
  • proactive
  • TEP

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Networks and Communications
  • Energy Engineering and Power Technology
  • Renewable Energy, Sustainability and the Environment
  • Electrical and Electronic Engineering
  • Control and Optimization

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