A Bi-level Transmission Expansion Planning Method Considering Financial Transmission Rights

In the presence of high penetrated renewable energy, an optimal transmission network investment framework requires to comprehensively consider the income of multi-type transmission right of market entities. In this paper, a bi-level model for transmission expansion planning (TEP) considering financial transmission right (FTR) trading is established, while a comprehensive evaluation index for TEP scheme is proposed. The upper-level model includes the step of TEP decisions while lower level model consider the daily market clear scheme and operation scheme. TEP is decided according to two criteria: evaluation indexes and the investment cost. Both the energy trading and FTR trading are taken into account to calculate the economic revenue of the market entities. A modified IEEE 14-bus system is tested. The simulation results show that the proposed bi-level TEP framework helps to promote the consumption of renewable energy, reduce power grid congestion, and ensure the fairness of market participation of market entities.

I. Introduction

Under the background to develop green China, the proportion of renewable energy in Southwest China is continuingly increasing[1]. In Southwest China, and there are widely distributed renewable energy resources, great demand for DC transmission, and scarce flexibility for power grid regulation.