MILP Approach for Bilevel Transmission and Reactive Power Planning Considering Wind Curtailment

In this study, two important planning problems in power systems that are transmission expansion and reactive power are formulated as a mixed-integer linear programming taking into account the bilevel structure due to the consideration of market clearing under several load-wind scenarios. The objective of the proposed method is to minimize the installation cost of transmission lines, reactive power sources, and the annual operation costs of conventional generators corresponding to the curtailed wind energy while maintaining the reliable system operation. Lower level problems of the bilevel structure are designated for the market clearing which is formulated by using the linearized optimal power flow equations. In order to obtain mixed-integer linear programming formulation, the so-called lower level problems are represented by using primal-dual formulation. By using the proposed method, power system planners will be able to find economical investment plans by considering the balance between wind power curtailment and the installation of transmission lines and reactive power sources.