This paper presents a model for multiperiod generation and transmission expansion planning (G&TEP) problem in the presence of uncertainties in the strategies of market participants. The effects of demand response (DR) and fixed series compensation (FSC) devices allocation are considered for peak shaving purposes and optimal utilization of transmission capacity, respectively. This may cutback the generating expansion capacity and transmission investment costs. The optimal expansion plan is achieved while the uncertainties in the generators' offers and demands' bids are considered in the market model. In this model, the DR preferences are integrated into the market clearing process of the independent system operator (ISO), which is applied to the load aggregators according to the locational marginal and market clearing prices. Shifting the demand, curtailing the peak, and onsite generation are considered as load reduction strategies in the demand response program. The ISO optimizes the decision submitted by generating companies and load aggregators in the presence of uncertainties. The proposed model is applied to the Garver, single-, two-, and four-area IEEE-RTS 24-bus systems to show the effectiveness of the multioptional DR program and the FSC devices in the dynamic G&TEP problems.
- Benders decomposition
- Demand response
- Dynamic generation-transmission expansion planning
- Fixed series compensation
- Peak load reduction