Coordination of Short-Term Operation Constraints in Multi-Area Expansion Planning

This paper presents a comprehensive expansion planning algorithm of generation and transmission components in multi-area power systems. The objective is to minimize the total system cost in the planning horizon, comprising investment and operation costs and salvage values subject to long-term system reliability and short-term operation constraints. The multi-area expansion planning problem is decomposed into a planning problem and annual reliability subproblems. The planning decisions calculated in the planning problem would also satisfy the short-term operation constraints. A detailed model of thermal and hydro units is considered using the mixed-integer programming (MIP) formulation. In addition, a multi-state representation for the expansion planning of renewable energy units is explored. The proposed approach considers customers' demand response as an option for reducing the short-term operation costs. The planning problem solution is applied to the annual reliability subproblems which examine system reliability indices as a post-processor. If the reliability limit is not satisfied, additional reliability constraints will be introduced which are based on the sensitivity of system reliability index to investment decisions. The new reliability constraints are added to the next iterations of the planning problem to govern the revised plan for the optimal expansion. Numerical simulations indicate the effectiveness of the proposed approach for solving the operation-constrained multi-area expansion planning problem of practical power systems.