The impact of dynamic generation prices on transmission capacity planning under competitive electricity market

This paper explores the impact of dynamic generation prices (DGP) on transmission network capacity planning. A model based on the framework of DC optimal power flow is proposed to solve the transmission planning problem considering DGP, as well as the network security constraints. The transmission planning problem is formulated as a mixed-integer optimisation model with the objective of minimizing the costs of network constraints and transmission investment over several typical daily load scenarios. The methodology is illustrated with the IEEE 14-Bus test system under weak, relatively strong and strong network conditions.