Large-scale power system planning using enhanced Benders decomposition

An enhanced Benders decomposition algorithm for two-stage stochastic LPs is presented and applied to a large-scale dynamic generation and transmission expansion planning model for the European power system. The improved algorithm is a variation of the traditional multi-cut Benders decomposition algorithm where the scenario aggregation used for the optimality cuts is reduced at a given error threshold. Experimental results show that this technique improves convergence and reduces computation time. An analysis using the planning model to compute an optimal development of the European power sector under a global climate policy is also discussed.