Congestion-based model for transmission expansion planning

In a competitive power market, it is important to expand or strengthen transmission system in order to provide a fair environment to all market participants. In this paper, a new congestion indicator is defined in form of Lerner index to quantify the overall network inadequacy. With this congestion index, a transmission expansion planning model in the LMP-based market is constructed. The objective function of the model takes the congestion revenue into account to reimburse the network expansion investments as a reward. The test results on the IEEE 24-bus example system show that the proposed model is more realistic for the transmission expansion planning in the market environment and hence the supervision on the network adequacy is very necessary.