A Bilevel Stochastic Optimization Framework for Market-Oriented Transmission Expansion Planning Considering Market Power

Market power, defined as the ability to raise prices above competitive levels profitably, continues be a prime concern in restructured electricity markets. power must mitigated improve market performance and avoid inefficient generation investment, price volatility, overpayment systems. For this reason, involving transmission expansion planning (TEP) problem is essential for ensuring efficient operation of In regard, methodological bilevel stochastic framework TEP that explicitly includes indices upper level proposed, aiming restrict potential execution. A mixed-integer linear/quadratic programming (MILP/MIQP) reformulation model constructed utilizing Karush−Kuhn−Tucker (KKT) conditions. Wind demand uncertainty are incorporated using scenario-based two-stage programming. The enables planner make trade-off between investment cost. Using comparable results IEEE 118-bus system, we show proposed outperforms existing models terms facilitates open access network all participants.