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Abstract—This paper proposes a method for choosing the best serve a growing electricity market while satisfying a set of
transmission system expansion plan considering a probabilistic economic and technical constraints [5], [6]. The problem is
reliability criterion LOLE . The method minimizes the invest- to minimize the cost subject to a reliability level constraint
ment budget for constructing new transmission lines subject to
probabilistic reliability criteria, which consider the uncertainties [7]. Various techniques, including branch and bound, sensi-
of transmission system elements. Two probabilistic reliability tivity analysis, Bender decomposition, simulated annealing,
criteria are used as constraints. One is a transmission system genetic algorithms, tabu search, and greedy randomized adap-
reliability criterion LOLE constraint, and the other is tive search procedure (GRASP), have been used to study the
a bus/nodal reliability criterion LOLE constraint. The problem [8]–[17]. It is difficult to obtain the optimal solution
proposed method models the transmission system expansion
problem as an integer programming problem. It solves for the of a composite power system considering the generators and
optimal strategy using a probabilistic branch and bound method transmission lines simultaneously in an actual system, and
that utilizes a network flow approach and the maximum flow-min- therefore, transmission system expansion planning is usually
imum cut set theorem. Test results on an existing 21-bus system performed after generation expansion planning. Deterministic
are included in the paper. They demonstrate the suitability of the reliability criteria such as a N-1 or N-2 contingency criteria and
proposed method for solving the transmission system expansion
planning problem subject to practical future uncertainties. load balance constraints are used in most transmission system
and composite power system expansion planning because of
Index Terms—Branch and bound, probabilistic reliability cri-
teria, transmission system planning. computation time problems. The recent blackouts that have
occurred in countries worldwide call for strengthening the grid
structure in order to establish successful deregulated electricity
I. INTRODUCTION markets. The incidents call for the development of tools that can
T RANSMISSION system expansion planning with open address uncertainties and significantly enhance the ability to
access to the transmission system has become a hot issue conduct effective transmission planning [18]. Available transfer
in the electricity energy industry in recent years [1], [2]. Elec- capability (ATC) is one good key parameter that indicates the
tric market access has moved the industry from conventional ability of a power system to reliably increase the transferred
monopolistic electricity markets to competitive markets [3], power between two zones or two points. NERC suggests the
[4]. In a competitive market, the price of the delivered energy transfer reliability criterion (TRC) based on the ATC for ISO
and the quality of energy supply, including voltage quality operating and planning of a transmission system. The TRC is
and reliability of service, are the main factors for business based on the N-1 contingency deterministic criteria concept. It
success. A key factor in today’s competitive environment has been used effectively for transmission system planning in
is the orientation toward customer needs and willingness to regulated environments. A probabilistic total transfer capability
pay for quality [4]. Transmission system expansion planning (TTC) methodology has been recently proposed [19].
addresses the problem of broadening and strengthening an Normally, the power system expansion planning problem is
existing generation and transmission network to optimally analyzed using a macro approach and then a micro approach
considering the stability and dynamic characteristics of the
new system. In a deregulated environment, electric utilities are
Manuscript received February 23, 2005. This work was supported by the Elec-
trical Industry Research Center (EIRC) of the Ministry of Commerce, Industry, expected to be winners in competition. Successful electricity
and Energy (MOCIE) of Korea. Paper no. TPWRS-00097-2005. market operation in such an environment depends on the trans-
J. Choi and T. Tran are with the Department of Electrical Engi- mission system and nodal (bus) reliability management [3]–[6].
neering, Gyeongsang National University, 660-701 Chinju, Korea (e-mail:
jschoi@nongae. gsnu.ac.kr; tttinh73@hotmail.com). Deregulated electricity markets, therefore, call for nodal-based
A. A. El-Keib is with the Department of Electrical Engineering, Petroleum indices in system operation and planning. Nodal reliability
Institute, 2533 Abu Dhabi, United Arab Emirates (e-mail: ael-keib@pi.ac.ae). indices together with related information can be used for the
R. Thomas and H. Oh are with the Department of Electrical and Computer
Engineering, Cornell University, Ithaca, NY 14853 USA (e-mail: rjt1@cor- management and control of congestion and reliability by ISO
nell.edu; hs01@cornell.edu). and TRANSCO in deregulated markets [3], [4]. This envi-
R. Billinton is with the Department of Electrical Engineering, Uni- ronment makes it important to assess and provide reasonable
versity of Saskatchewan, Saskatoon, SK S7N 5A9, Canada (e-mail:
roy_billinton@young.usask.ca). reliability criteria at the load points [4]. In such an environment,
Digital Object Identifier 10.1109/TPWRS.2005.852142 probabilistic reliability indices become important parameters
0885-8950/$20.00 © 2005 IEEE
CHOI et al.: METHOD FOR TRANSMISSION SYSTEM EXPANSION PLANNING 1607
A. Objective Function
The conventional transmission system expansion planning
Fig. 1. Composite power system, including the transmission system. problem is to minimize the total construction cost associ-
ated with investing in new transmission lines as expressed in
in transmission system expansion. In addition, in a competitive [25]–[27]
electricity market, there is more variability in the investment
budget for construction and higher uncertainty in the transfer minimize (1)
reliability of the transmission system. This is because profit
maximization for the system owner is the major focus, while, where
for a conventional power system, the primary function is to pro- set of all branches (transmission lines);
vide electrical energy to its customers economically and with number of new candidate branches connecting
an acceptable degree of continuity and quality. System planners nodes and ;
and owners are, therefore, expected to evaluate the reliability sum of the construction costs of the new lines 1st
and economic parameters with more detail in grid planning, through th that connect buses and
where the problem involves many uncertainties, including those
of the investment budget, reliability criterion, load forecast, and
system characteristics[2]. It is a challenging task to develop with
an expansion plan that considers all these items in an effective
and practical manner. Under such uncertain circumstances, construction cost of the new th line connecting
methodologies that are based on fuzzy set theory and proba- nodes and ;
bilistic approaches become attractive and useful to accomplish decision variable associated with the line (1 if from
the task. The former is attractive because the experience and 1st to th lines are to be constructed, and 0 other-
knowledge of experts and decision makers can be very helpful wise)
in dealing with subjective ambiguity in planning problems [20], with
[21]. The latter is also valuable for considering the objective
uncertainties, such as the forced outage rates (FORs) of power
system elements [22], [23].
This paper proposes a new method for choosing the best
expansion plan for a transmission system considering a trans- (2)
mission system probabilistic reliability criterion LOLE .
with
Two probabilistic reliability criteria are used as constraints. One
is a transmission system reliability criterion constraint required sum of the capacities of new branches (new trans-
loss of load expectation of transmission system ( LOLE ), mission lines) between nodes and ;
and the other is a bus/nodal reliability criterion constraint capacity of the th element of the candidate branches
required loss of load expectation at bus/node ( LOLE ). connecting nodes and ;
The proposed method minimizes the investment budget for capacity of the existing lines that connect nodes
constructing new transmission lines subject to probabilistic and .
reliability criteria, which considers the uncertainties of trans-
B. Constraints
mission system elements. It models the transmission system
expansion problem as an integer programming problem. It The basic reliability criteria normally considered in a com-
solves for the optimum mix of transmission network expansion posite power system planning problem can be categorized as
using a probabilistic branch and bound method that utilizes a two types of constraints. One is a deterministic reliability crite-
network flow approach and the maximum flow-minimum cut rion, and the other is the probabilistic reliability criterion.
set theorem [24]–[27]. In a deterministic approach, no shortage of power supply re-
quires that the total capacity of the branches involved in the min-
II. TRANSMISSION SYSTEM EXPANSION PLANNING PROBLEM imum cut set should be greater than or equal to the system peak
load demand . This is also referred to as the bottleneck ca-
A composite power system that includes generation and trans- pacity. Therefore, a no-shortage power supply constraint can be
mission facilities is shown in Fig. 1. TS refers to the transmis- expressed by
sion system, NG is the number of generators, is the inverted
(3)
load duration curve at load point , and NL is the number of load
points. In this paper, a composite power system is designated as where is the capacity of the minimum cut set of two
Hierarchical level II (HLII), and Hierarchical level I (HLI) is subsets and , containing source nodes and terminal nodes
1608 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 20, NO. 3, AUGUST 2005
(4)
In the probabilistic approach, the probabilistic reliability cri-
terion index LOLE can be used as in
LOLE LOLE (5)
EENS EENS EENS MWh yr (16) The proposed method was tested on the 21-bus model system
shown in Fig. 3. This is a part of the southeast area (Youngnam)
LOLE LOLE LOLE hrs yr (17)
in Korea. Considering a future forecast system load, the deter-
ministic reliability criterion and the proposed probabilistic re-
liability approaches were applied and compared in a series of
IV. SOLUTION ALGORITHM case studies [32], [33]. The probabilistic approach considers the
The objective in the conventional branch and bound method is probabilistic reliability criterion without the deterministic con-
to minimize the total construction cost subject to a specified reli- straints (demand balance).
ability criterion. The proposed probabilistic branch and bound- Table I shows the system data with GN, TF, TL, and LD repre-
based method minimizes the total cost subject to the required senting generators, transformers, transmission lines, and loads,
probabilistic transmission system reliability criteria LOLE respectively. SB and EB are start and end buses of the line, re-
and/or LOLE . spectively. and are, respectively, the capacities
The solution algorithm for the proposed approach follows. and costs of existing lines that connect nodes and . In this
1) Check the need for transmission expansion for the study, four candidate generators and lines are considered as it
system and its possibility using the candidate lines. is, meaning that in (1) and (4). In Table I, paren-
Need and possibility can be checked, respectively, by theses in and are omitted for convenience. The
the reliability evaluation for systems considering no cost unit M$ in this table stands for millions of dollars. Table II
candidate lines and considering all candidate lines. shows the forced outage rate of the generators and transmission
2) Set (initial system), lines. Fig. 4 shows the inverted load duration curves at the buses
, and ENNOD . with the four largest loads.
3) If ENNOD , the # system is an end node at which In the first case study, the required probabilistic transmission
the branch operation of a branch and bound is finished system reliability criterion LOLE [hrs/yr] is assumed
(bound) in the solution graph used to obtain the optimal for base case. The new optimal system is shown in Fig. 5, with
solution, and there is no need to consider any of the dotted lines presenting new lines. An optimal system that has the
other graphs following this system. Go to step 13). construction cost of 209[M$] and the new construction elements
1610 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 20, NO. 3, AUGUST 2005
TABLE I
SYSTEM CAPACITY AND COST DATA P(*): (MW) AND C(*): (M$) (#0 and #6
REPRESENT SOURCE AND TERMINAL NODES, RESPECTIVELY
TABLE III
RELIABILITY INDICES AT THE LOAD BUSES IN THE
CASE OF ( LOLE [hrs/yr])
Fig. 4. Inverted load duration curves at the buses with the four largest loads.
(Top) (a) ILDC at Bus 17. (b) ILDC at Bus 2. (Bottom) (a) ILDC at Bus 21. (b)
ILDC at Bus 13.
TABLE IV TABLE V
OPTIMAL EXPANSION PLANS DUE TO CHANGING THE SYSTEM RELIABILITY INDICES AT THE LOAD BUSES IN THE
RELIABILITY CRITERION LOLE CASE OF LOLE [hrs/yr]
TABLE VI
OPTIMAL EXPANSION PLANS DUE TO CHANGING THE BUS
RELIABILITY CRITERION LOLE
TABLE VIII
OPTIMAL EXPANSION PLANS DUE TO CHANGING THE RELIABILITY CRITERION
LOLE AND FIXING LOLE [hrs/yr]
VI. CONCLUSION
This paper addresses transmission system expansion plan-
ning using a probabilistic reliability criterion. The proposed
Fig. 8. Optimal system by the probabilistic approach ( LOLE procedure is a first step in preparing a transmission system
[hrs/yr] and LOLE [hrs/yr]).
expansion plan employing probabilistic reliability assessment
methods to ensure the reliability of the electric power grid.
TABLE VII
Optimal locations and capacities of transmission lines can be
RELIABILITY INDICES AT THE LOAD BUSES IN THE CASE OF TWO CONSTRAINTS determined using the proposed method. The paper presents a
LOLE [hrs/yr] and LOLE [hrs/yr] new and practical approach that should serve as a useful guide
for the decision maker in selecting a reasonable expansion
plan prior to checking system stability and dynamics in detail.
The proposed method finds the optimal transmission system
expansion plan considering uncertainties associated with the
forced outage rates of the grid elements (transformers and
lines). It models the problem as a probabilistic integer pro-
gramming one and considers problem uncertainties through
probabilistic modeling. A probabilistic branch and bound
algorithm, which includes the network flow method, and the
maximum flow-minimum cut set theorem is used to solve the
problem. The case studies show that quite different planning
alternatives can be determined from the use of the deterministic
and probabilistic reliability approaches and different reliability
criteria. The case studies on the 21-bus test system suggest that
bus/nodal probabilistic reliability criteria result in a stronger
grid than a grid produced using system reliability criteria. The
that the optimal plan involves a new line between buses 17 and paper shows that the proposed method can be used to perform
13 in order to satisfy the bus 17 reliability criterion. transmission system expansion planning considering different
The optimal expansion plans resulting from changing the bus individual bus reliability criteria. The proposed approach can,
17 reliability criterion LOLE are given in Table VIII. therefore, accommodate customers’ requirements in a compet-
The tabulated results indicate that as the LOLE in- itive electricity market environment.
creases, the total construction cost decreases, and the actual re-
liability indices, the specified LOLE , as well as LOLE
ACKNOWLEDGMENT
and EENS of the new optimal transmission system increase.
The same new plans are obtained for LOLE This study was done by the Electrical Power Relia-
[hrs/yr] and over. This comes from the fact that the system bility/Power Quality Research Center, Korea, and PSERC,
reliability constraint is more dominant than the bus reliability Cornell University, Ithaca, NY.
1614 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 20, NO. 3, AUGUST 2005