POWERENG 2009

Lisbon, Portugal, March 18-20, 2009

Composite Generation and Transmission

Planning in a Competitive Environment
Ibrahim M. Elamin

Mohammed T. Al-Saba

Electrical Engineering Department

King Fahd university of Petroleum & Minerals
Dhahran 31261, Saudi Arabia
e-mail: imelamin@kfupm.edu.sa

Transmission Asset Planning Department

Saudi Electricity Company
Dammam, Saudi Arabia
e-mails: h2mts@se.com.sa

Abstract-In a deregulated power system, generation

companies would like to maximize their profits and share of the
electricity market. This can only be achieved if transmission
access and network availability is satisfactory. New mathematical
models for generation and transmission planning are thus
needed. The problem is divided into two sub-problems of
generation and transmission. The two sub-problems will then be
combined to provide a composite solution. The generation subproblem considers investment costs, fuel cost, operation and
maintenance costs, generation limits, and limits on unserved
energy. The transmission sub-problem takes into consideration
power flow, cost of adding lines, number of circuits in a route.
The transmission sub-problem is formulated as a mixed integer
optimization problem. The developed algorithms were solved
using Branch and Bound method. The transmission sub-problem
was solved through DC power flow based on a successive
backward method. This was tested on two systems including an
artificial an IPP seeking an appropriate location. The results
provide a location for the IPP with sufficient transmission access
and at the same time minimized the overall costs.
Keywords: power system planning; IPP, transmission
congestion, composite generation & transmission studies.

I.

INTRODUCTION

Since the 1990, many electric utilities have changed their

ways of doing business, from vertically integrated mechanisms
to open market systems. With deregulation of the electric
power industry, the system planning process has undergone
drastic changes. Generation is deregulated and Independent
Power Producers (IPPs), individually, invest on generation
which can be built anywhere and at any time. This imbalance
between generation and transmission expansion could cause
some bottle-necks and congestion in certain locations within
a system.
Techniques and algorithms for generation and transmission
planning, in traditional power systems, are well documented
and have established formulations [1]. However, in a
deregulated power system, generation companies are
distributed and would like to maximize their profit and share of

978-1-4244-2291-3/09/$25.00 2009 IEEE

the electricity market. This can only be achieved if

transmission access and network availability are satisfactory.
So, new mathematical models for generations and
transmission planning in deregulated system need to be
developed.
This paper introduces a mathematical model for composite
generation and transmission planning in a deregulated power
system in which locational balance for both generation and
transmission are achieved. The paper solves the models using
optimization algorithm in conjunction with branch and bound
method.
II.

COMPLEXITY OF GENERATION AND

TRANSMISSION PLANNING UNDER
DEREGULATION

Following the restructuring of the electricity industry,

generation and transmission planning are no longer a
coordinated function. New generation sites and power plant
closure will be determined virtually independent of the
transmission system.. This adds a level of uncertainty in
transmission planning process. Generation closure as well as
new connections may require local system reinforcements [17]. The generation expansion problem is affected by several
external variables such as future market prices , investment
costs and the properties of the new equipment[8]. These are
uncertain and difficult to determine. Q. Xia, Y.Song, C.Kang
and N.Xiang present a comprehensive model of generation
capacity expansion in which the geographical distribution of
the load, the capacity of a transmission line, its investment
and operation costs are all taken into consideration [9].
Focusing on the problem of the location of the generating
units, the paper simplifies the electrical network as a
transportation network and optimizes generating unit location
and electrical network expansion simultaneously from an
economic point of view.. The Generation Capacity Expansion
(GCE) is decomposed into Optimization of Generation Mix
(OGM) and generating unit location optimization (GULO).
The paper then established new models in which the fuel price
and electrical demand of different areas, the investment cost

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Lisbon, Portugal, March 18-20, 2009

and capacity of power transmission lines are all taken into

consideration. The objective function seeks to minimize the
sum of investment and operational cost within the planning
period. The constraints include both expansion of generation
capacity and electrical network system operation. The
computational results have shown that a reasonable plan of
generating unit location can save much investment and
operation cost of electrical network expansion. The composite
model described in this article, focuses on achieving the least
cost of transmission expansion investments by finding the
optimal location for the new generation unit.. The objective
function is to minimize the transmission expansion costs while
satisfying the transmission operation constrains and at the same
time finding the optimal location for the new generation units
to added to the system.
III.

COMPOSITE MATHEMATICAL MODELING OF

GENERATION AND TRANSMISSION

v = cij nij + ai ri
ij

Subject to

(1)

S f + g + r + gn = d
T

(2)

f ij ij ( ijo + ij )(i j ) = 0 (3)

f ij (ijo + ij ) f ij
0gg

(5)

0 gn gn

(6)

0 nij nij

(i, j ) (7)

0rd
Where

(4)

(8)

cost of the addition of a circuit to branch i-j;

nij

number of circuits added to branch i-j;

iho
ai

number of circuits in the base case;

penalty factor associated with load curtailment at bus i
caused by lack of transmission capacity;

ri

dummy generation which corresponds to load curtailment at bus i;

node branch incidence matrix;
s
f
vector of active power flows through the lines;
g
vector of generated active power;
vector of new generated active power to be added
gn
r
vector of load curtailments;
d
vector of predicted loads;

ij

The purpose of the deregulation is to achieve higher levels

of efficiency and more competitive prices for electric energy
by means of the introduction of competitive mechanisms in
generation and supply. It involves changing the traditional
monopolistic structure of utilities and causing the separation of
the different activities that were traditionally carried out by
electric utilities. Generation and supply services are open to
competition and network activities are subject to a strict
regulation. Different agents with conflicting interests and
viewpoints about how the system should be expanded may
participate on network development. Transmission planning
must therefore consider additional factors that did not exist
before including [10] :
1. The uncertainty about the location of new generation
units
2. The growing impact of distributed generation
3. The participation in the planning process of network users
and other affected agents.
4. The coordination of network development with the
connection of new generation units.
The composite planning model is described as follows:
Minimize

cij

i
j

susceptance in branch i-j;

voltage angle at bus i;
voltage angle at bus j;

f ij
g
nij

vector of maximum generation capacity;

set of all circuit candidates.

flow limit in branch i- j;

maximum number of new circuits added to branch i-j;

The main difference between the traditional transmission

planning model and the proposed planning model is the
introduction of the vector group of variables gn. The new
vector group of variables, gn, represents the decision of
candidate locations for the new generation units to be added.
The model finds the best location for the new generation units
and at the same time produces the least cost of new
transmission circuits to be added.

IV.

ALGORITHMS AND METHODS OF SOLUTION

A. The Mathematical Optimization Model of the DC Power

Flow
The model is formulated as a mathematical mixed integer
nonlinear optimization problem. The model is first solved by
relaxing the integer conditions to a continuous one and finding
the optimal solution of the relaxed problem using the
fmincon function of the Optimization Toolbox of MATLAB.
Then, branch and bound algorithm for nonlinear mixed integer
programming is run on top of the relaxed solution. The
solution provides the optimum number of lines, finding the
optimal location for the new added generation unit and as well
as the corresponding lines addition cost.
B. The Hybrid Mathematical Optimization of the DC Power
Flow Model Simulation for Case-1

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Lisbon, Portugal, March 18-20, 2009

The hybrid model combines characteristics of the DC

power flow model while relaxing its nonlinear constraints.
There are various ways of formulating hybrid models, although
the most common is that which preserves the linear features of
the transportation model.

The model was simulated in MATLAB using the optimization

toolbox and running Branch and Bound method. The method
resulted in the selection of one unit of Thermal-20MW and
three units of Thermal-40MW. Fig. 2 shows the results of the
generation additions. The results indicated that all generation
is located at bus 1.

C. Heuristic DC Power Flow Model Based On Successive

Backward Method
The heuristic method of network planning is mainly
characterized by expanding a network step by step by through
the lack of consideration of interaction between decisions of
additions. Therefore, it cannot guarantee mathematically an
optimal solution, which is the main disadvantage. The model
starts by solving the DC load flow. Although AC power flow
gives accurate operation cost, the DC power flow is viewed as
sufficient for planning purposes because of its simplicity and
less computation time.
V.

SYSTEM APPLICATION

The algorithms and mathematical models described in

section four shall be used to solve several power system
networks to test those algorithms.
A. Traditional Generation and Transmission for Test System
1: The RBTS 6-Bus System
The 6-Bus RBTS system, shown in Fig..1, is solved using
the traditional generation and transmission planning models.
The RBTS case consists of six different types of generation.
The total existing capacity is 240MW. The load is forecasted to
reach 325 MW. It is required to identify the generation and
transmission additions to meet system load within a known
planning criteria.

Fig 2.

Final Configuration for the RBTS 6 Bus System after the

composite planning model

C. Traditional Transmission Planning Application

A MATLAB program was developed to test the traditional
transmission planning model of the RBTS 6 bus system. The
model is formulated as a mixed integer nonlinear optimization
problem. The result of the MATLAB program is shown in
Table I
The results indicated that there is a need for one additional
circuit between buses 1 and 3. The flow through the link is 141
MW.
TABLE I
OPTIMAL SOLUTIONS FOR 6-BUS NETWORK USING MATHEMATICAL
OPTIMIZATION

Fig. 1. The initial RBTS 6-Bus System

B. Traditional Generation Planning Application

A MATLAB program was developed to solve the
traditional generation planning model. The model is formulated
as linear mixed integer optimization problem. The model is
first solved by relaxing the integer conditions to a continuous
one and finding the optimal solution of the relaxed problem.

No. of
Existing
Line
1

No. of
Proposed
Lines
0

38.783
17.291
18.574

44.43

141.57

38.783

25.856

35.143

Line#

From

To

Flow
(MW)

70.787

D. Composite Planning for Test System 1: The RBTS 6-Bus

System
The 6-Bus RBTS system described in Fig..1 above is
solved using the composite generation and transmission
planning model where the new generators are allowed to be
located anywhere in the system.

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A.

The Mathematical Optimization Model of the Composite

System for Case-1
The optimization model was used to solve the RBTS
system. It uses the Matlab optimization toolbox and running
Branch and bound on top. The optimum location for the new
generators is shown in Table II and the load flow results are
summarized in Table III. The notable change is that generation
is now located at bus 3 and there will be no need for new
circuits between bus 1 and bus3.

TABLE IV
GENERATION AND LOAD DATA FOR 14-BUS SYSTEM

Nodes

Generator outputs, MW

2280

1636

TABLE II

968

OPTIMAL GENERATION LOCATION

820

1383

1681

Bus No.

New Generation to Added in MW

0.00

0.00

140.00

0.00

0.00

0.00

Loads, MW

2280

1950

10

11

764

12

1710

13

220

14

210

TABLE V
TABLE III

BRANCH DATA FOR 14-BUS SYSTEM

OPTIMAL SOLUTIONS FOR 6-BUS NETWORK USING MATHEMATICAL

OPTIMIZATION

Length
Km

Line
Capacity
MW

Existing
Circuit

0.02924

136

1250

0.01806

84

1250

0.00925

43

1250

0.0516

240

1250

Line#

From

To

Reactance
p.u.

Line#

From

To

Flow
(MW)

39.459

No. of
Existing
Line
1

35.505

No. of
Proposed
Lines
0
0

-23.848

22.946

0.01591

74

1250

46.616

0.0387

180

1250

39.459

0.0086

40

1250

35.505

0.01075

50

1250

0.01075

50

1250

10

10

0.01935

90

1250

11

10

11

0.01075

50

1250

12

10

12

0.01356

60

1250

13

10

13

0.07571

335

1250

14

13

14

0.01808

80

1250

8
9

4
5

5
6

23.67
35.143

B. System Planning for a 380 kV Power Network: Study

System II
Fig. 3 shows an existing 380-Kv power system. It is
made of 14 buses and 25 lines. The demand and relevant
generation data are given in Tables IV and the transmission
line data are given in Table V.

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as shown in Table VII and load flow result is summarized in

Table VIII. The results also indicate a need for one
transmission circuit between buses 7-9. The final system
configuration is shown in Fig. 4.

Fig..3. Existing 380 kV Power System.

C. Traditional Transmission Planning for Study System II

The traditional transmission planning model was then
tested on an existing 380 Kv system. The model is first solved
by relaxing the integer conditions to a continuous one and
finding the optimal solution of the relaxed problem. The result
of the MATLAB program is shown in Table VI. The solution
reveals the need for lines between buses 1 & 2 and buses 10 &
12.

Fig. 4. Final Configuration For The 14 Bus System After The Composite
Planning Model.

TABLE VI
OPTIMAL SOLUTIONS OBTAINED FOR 14-BUS NETWORK USING
MATHEMATICAL OPTIMIZATION

TABLE VII
OPTIMAL GENERATION LOCATION FOR 14-BUS NETWORK USING THE NEW
MATHEMATICAL OPTIMIZATION
Bus No.

New Generation to Added in MW

1710

Line
#

Fro
m

To

Flow

No. of
Existing Line

1636

No. of
Proposed
Line
1

612.58

31.417

820
329.42
-846

-1681

10

11

12

13

14

-2280

1434

10

10

-516

11

10

11

764

12

10

12

-1710

13

10

13

430

14

13

14

210

D. Composite Planning for Study System II

The 14-Bus system is solved again using the composite
generation and transmission planning model where the
generators at bus-12 are allowed to be located anywhere in the
system. The best location for the generator at bus 12 is at bus 2

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Lisbon, Portugal, March 18-20, 2009

TABLE VIII

successive backward method. This was tested on two systems

including an artificial an IPP seeking an appropriate location.
The results provide a location for the IPP with sufficient
transmission access and at the same time minimized the overall
costs.

OPTIMAL SOLUTIONS FOR 14-BUS NETWORK USING MATHEMATICAL

OPTIMIZATION OF COMPOSITE SYSTEM
Line
#

Fro
m

To

Flow
(MW)

-74.00

No. of
Existing
Line
1

1870.90

483.06

820.00

-781.06

864.00

-1681.00

No. of
Proposed Line

-2280.00

3144.00

10

10

1194.00

11

10

11

764.00

12

10

12

0.00

13

10

13

430.00

14

13

14

210.00

VII.

ACKNOWLEDGEMENT

The authors would like acknowledge the support and

facilities of King Fahd University of Petroleum & Minerals,
Dhahran 31261 Saudi Arabia .

REFERENCES
[1]

CONCLUSIONS

In this paper, a new method for composite generation and

transmission planning under deregulated environment was
presented. The problem is divided into two sub-problems of
generation and transmission. The generation sub-problem
considers investment costs, fuel cost, operation and
maintenance costs, generation limits, and limits on un-served
energy. The transmission sub-problem takes into consideration
power flow, cost of adding lines, number of circuits in a route.
The transmission sub-problem is formulated as mixed integer
optimization problem. The developed algorithms were solved
using Branch and Bound method. The transmission subproblem was solved through DC power flow based on a

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