Transmission planning and unexpected events: An economic framework

This paper describes a practical technique to quantify transmission asset exposure to unexpected events so that planning engineers can identify and justify cost-effective mitigation measures. The analysis framework uses insurance risk analysis and highlights the need to understand multiple asset outage consequences in the power system. With these inputs annualised outage costs can be estimated and mitigation strategies tested for cost effectiveness. A number of real investment case studies are presented to illustrate the technique.