Security-Constrained Generation and Transmission Expansion Planning with Risk of Contingencies

In a centralized generation and transmission expansion planning (G&TEP) framework, a central planner, e.g., the independent system operator, determines the plan that has the highest profit for the whole system. In this paper, we propose a security-constrained G&TEP model with respect to the risk of possible \pmbN-1 contingencies. Using the concept of risk, nonidentical probability and severity of individual contingencies are modeled in the proposed G&TEP model. A linearization technique is developed to make the model a mixed-integer linear programming (MILP) problem. The numerical studies on the RTS 24-bus test system illustrates the efficacy of the proposed model.