Estimating the benefits of transmission expansion projects: An Aumann-Shapley approach. (1st January 2017)

• Record Type: Journal Article
• Authors: Banez-Chicharro, Fernando; Olmos, Luis; Ramos, Andres; Latorre, Jesus M.
• Is Part Of: Energy. Volume 118(2017)
• Page Start: 1044
• Page End: 1054
• Publication Date: 2017-01-01
• Subjects: Aumann-Shapley -- Cooperative game theory -- Cost-benefit analysis -- Investment -- Transmission expansion planning; ACER Agency for the Cooperation of Energy Regulators -- AS Aumann-Shapley -- B/C Benefit to Cost ratio -- CAISO California Independent System Operator -- CBA Cost-Benefit Analysis -- CSW Continental South-West -- EC European Commission -- ED Economic Dispatch -- ENS Energy Not Served -- ENTSO-E European Network of Transmission System Operators for Electricity -- EU European Union -- FACTS Flexible Alternating Current Transmission System -- MENA Middle East and North of Africa -- PCI Projects of Common Interest -- PINT Put IN one at a Time -- RES Renewable Energy Source -- SW Social Welfare -- TEP Transmission Expansion Plan -- TOOT Take Out One at a Time -- TYNDP Ten-Year Network Development Plan -- USA United States of America; Power resources -- Periodicals; Power (Mechanics) -- Periodicals; Energy consumption -- Periodicals; 333.7905
• DOI: 10.1016/j.energy.2016.10.135
• Languages: English
• ISSNs: 0360-5442

Abstract

Abstract: This paper proposes a novel methodology to estimate the benefits produced by transmission expansion projects that are part of an expansion plan. Any methodology applied should be coherent with the technical and economic principles that underlie an efficient planning of the network expansion, where expansion projects are selected to be part of the plan according to the benefit they produce when considered jointly with the rest of projects. The methodology developed is based on the idea that projects to be undertaken should be evaluated jointly, instead of individually, because the benefits produced by each of them depend on other projects in the plan. We formulate a cooperative game to allocate the benefits of the plan to individual projects using the Aumann-Shapley concept. Then, players in the game are expansion projects. The method proposed is able to capture interactions among projects. Moreover, it is highly computationally efficient and therefore can be applied to real –large– expansion plans. Two case studies are used to compare the performance of the methodology proposed to that of existing methods. The results show that the proposed methodology provides regulatory authorities with the most relevant information for the identification of high-priority expansion projects. Highlights: Benefits of projects within an expansion plan are computed in a novel way. Discussion of the properties required to asses the benefits of projects of a plan. Project's benefit computation is based on the Aumann-Shapley concept. The proposed methodology is compared to the existing ones. Priority projects of large expansion plans can be identified.