With the shift of the electric power industry from a regulated monopoly structure to a competitive market environment, the focus of the transmission expansion planning has been moving from reliability-driven transmission expansion to market-based transmission expansion [9-12]. The formulation of competition in decentralized transmission expansion based on Lagrangian Relaxation (LR) technique shows that transmission investment can be profitable in a competitive market.

A procedure to identify optimal transmission upgrades is proposed by computing the cost of upgrades and benefits. A technique of transmission planning using Bender’s decomposition could be used to solve the complicated long-term network expansion problem by decomposing the investment cost and congestion cost minimization problem into network expansion problem (master problem) and operational problem (slave problem). Market-driven power flow patterns and decision analysis scheme based on the regret of plan are incorporated in the transmission expansion method to find the best transmission expansion scenario. The economic value of transmission expansion is highly dependent on the accuracy of load forecast, fuel costs, and generation additions. Therefore, there is uncertainty in the economic assessment of transmission expansion associated with errors in load forecast fuel costs, and generation additions.

In market-based transmission expansion, however, a growing demand for electricity, an increasing number of transmission bottlenecks, and the falling levels of transmission investment have created the need for an incentive to motivate investors. In a competitive market environment, the expectation of profit serves as a motivational factor for investors to invest in transmission expansion. To promote investment in transmission expansion, therefore, there is an increasing need for a systematic method to examine transmission expansion for investment incentives.

The economics of transmission expansion need to be evaluated from multiple perspectives: Independent System Operator (ISO)/Regional Transmission Organization (RTO) perspective or private investors’ perspectives. The transmission expansion problem in a competitive market environment should be formulated from ISO and investors’ perspectives.

Dear Mohsen,

The power system planning in a deregulated environment is a challenging area which has received much attention in the literature.

In fact, the most important uncertain factor which influences TEP (Transmission Expansion Planning) is the uncertain GEP (Generation Expansion Planning) output. I would like to ask you a challenging question: How TEP may be properly performed if GEP is decided upon by the other market players?

I recommend you study the worthwhile book of Professor Hossein Seifi and Dr. Sepasian in this field of study (See the link below).

Moreover, the following papers (especially the papers of Dr. Majid Oloomi-Buygi) would provide a good insight for your research.

Good luck,

Morteza Shabanzadeh

http://mortezash.blogfa.com/

http://link.springer.com/book/10.1007%2F978-3-642-17989-1

Article Market-based transmission expansion planning. IEEE Trans Power Syst

Article Private Investor-based Transmission Expansion Planning in De...

Article A Multi-Objective Framework for Transmission Expansion Plann...

Conference Paper Market based transmission planning under uncertainties

As a power system planning engineer I can tell you that there're not many changes, basically, with the electricity markets, the investments in generation capacity are decentralized so game theory is useful when simulating that interaction, Then, the transmission company reacts to the generation level minimizing the investment plus the operation cost just as it was in the past.

Maybe, the paper I attach can help you, I remark that in real life, At the first stage is the generation investment and then the transmission planning. 

Best regards, 

Hans

hi mohsen

this question is very good

pleas more Explanation.thank you