Reactive coordination of transmission-generation investment planning

This paper discusses the reactive coordination of generation and transmission planning in a competitive electricity market. The transmission planner is assumed as a social cost minimizing entity and the behavior of generators is modeled as the Nash equilibrium of a strategic game. Reactive coordination forms a mixed-integer optimisation problem which can be solve by commercially available softwares. This problem is solved for two cases of with and without transmission charges. Efficient coordination of transmission and generation planning is considered as the benchmark in this study. The developed model is implemented for a 6-node illustrative example and IEEE-RTS96 test system and the results are compared.