A transmission network expansion game -

Abstract

The transmission network plays a critical role in the electricity market. Nowadays, making decisions concerning network investments has become harder due to the new patterns of electricity consumption and the competition among electricity producers. In fact, electric power systems are now operated horizontally instead of vertically. In this work an expansion plan is assessed using a performance function that is a trade-off between the cost of new lines and the social welfare resulting from the expansion. To estimate such welfare, the correlated equilibrium (CE) of the electricity market is studied, and no regret algorithm is applied to the competition in the power pool. The methodology is illustrated using graver six bus system and IEEE 24 bus system. Simulation results show that CE can be used to account for the strategic behavior of the generators and that it has low computational requirements when compared to Nash equilibrium (NE) as well as it always exits even when NE doesn’t.