A Cost-Benefit approach for transmission investment with a non-linear transmission cost function

There is a need to accurately determine expansion of transmission system to accommodate the connection of wind power in an efficient manner. The current transmission planning criteria in the UK was developed for systems with conventional generation and is not suitable for systems with high wind penetration. In this paper, a Cost-Benefit Analysis (CBA) based transmission expansion problem is described. A piecewise cost function is used for transmission reinforcement to reflect the cost of various options in enhancing transfer capability of transmission system. This model has been elaborated to support development of new transmission planning and security standards in the UK.