Journal
IEEE TRANSACTIONS ON POWER SYSTEMS
Volume 27, Issue 1, Pages 424-432Publisher
IEEE-INST ELECTRICAL ELECTRONICS ENGINEERS INC
DOI: 10.1109/TPWRS.2011.2159251
Keywords
Benders' decomposition; generation investment; mathematical programs with equilibrium constraints (MPEC); strategic producer; uncertainty
Categories
Funding
- Junta de Comunidades de Castilla-La Mancha [PCI-08-0102]
- Ministry of Science and Technology of Spain through CICYT [DPI2009-09573]
Ask authors/readers for more resources
We address the generation investment problem faced by a strategic power producer and consider a detailed description of the uncertain parameters involved, namely, rival producer investment and market offering, and demand growth. To identify optimal investment decisions, we consider a target year and propose a bilevel model whose upper-level problem determines investment and offering decisions to maximize expected profit, and whose many lower-level problems represent market clearing conditions per demand block and scenario. Since the producer total expected profit is sufficiently convex with respect to investment decisions, a Benders' decomposition approach is proposed that results in a tractable formulation even if hundred of scenarios are used to describe uncertain parameters. Extensive numerical simulations based on realistic case studies show the good performance of the proposed decomposition approach.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available