The electricity demand is rising across the globe and the power grids have to be ready to cater to the future loads. The power grid operators aim to operate the grid as economically as possible. In this research, economic operation and expansion planning of future grid is studied.



The Power System Expansion planning considered in research consists of investment options in generation, transmission and demand management resources. For the power system expansion planning problems, a novel Information Exchange based Clustered Differential Evolution (IE-CDE) is proposed and implemented to solve the Hybrid Generation-Transmission Expansion Planning problems. The simulation and through proof we show that a hybrid co-optimization leads to optimal solution as compared to a traditional sequential approach where the Generation expansion planning problem is followed by a transmission expansion planning problem. The research extends the Generation-Transmission expansion planning framework to see the effects of Demand Side Management investment options on the overall expansion planning cost.



For the operational planning of the grid, this research delves into Nash Equilibrium between competing Gencos in markets. The operational study involves the computation of equilibrium among Gencos that compete to maximize their profits in the electricity market auctions. The research proposes a novel Affine-plane approximation method to recast the Non-convex Mathematical Program with Equilibrium Constraints (MPEC) for each profit-maximizing Genco into a Linear Program. This allows for converting the equilibrium calculating step traditionally with an Equilibrium Problem with Equilibrium Constraints (EPEC) into an easier to solve Mixed Complementarity Problems (MCP). The study allows the economic inefficiencies to be decomposed into Imperfect Information and Imperfect Competition Costs.