By Topic

Transmission planning under uncertainty: A two-stage stochastic modelling approach

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)
van der Weijde, A.H. ; Dept. of Econ., Univ. of Cambridge, Cambridge, UK ; Hobbs, B.F.

We develop a stochastic two-stage modelling approach to capture the multistage nature of the electricity transmission planning problem and apply it to a stylised representation of the Great Britain (GB) transmission network. In our model, a proactive transmission planner makes investment decisions in two time periods, each time followed by a market response. In the second period, there is less uncertainty than in the first, as the planner knows which of the scenarios has been realized, but the set of options open to the planner in the second period is constrained by the first-period decisions. This model allows us to estimate the value of information in transmission planning, the costs of ignoring uncertainty and the option value of transmission investment alternatives. Our results show that ignoring risk has quantifiable economic consequences and that there is a quantifiable value of optionality.

Published in:

Energy Market (EEM), 2010 7th International Conference on the European

Date of Conference:

23-25 June 2010