Incorporating externalities when optimising power system expansion plans

Abstract

Power system expansion planning has traditionally been conducted in two phases: optimisation of the future generation system to satisfy forecast demands, followed by that of a complementary transmission system. However, it is now computationally realistic to optimise both aspects simultaneously, even for large and complex systems. At the same time, the range of candidate generation plant types to be considered has widened considerably, with the technical and economic characteristics of wind, solar and biomass plants now having to be compared with those of conventional thermal and hydro plants. It is also becoming increasingly important to take explicit account, within the planning process, of the so-called ‘externalities’ such as emission limits, budget constraints and demand-management measures, in addition to the environmental costs and secondary benefits associated with individual projects. This paper describes the results of a study to demonstrate the feasibility of explicitly considering a range of externalities when mathematically optimising integrated generation and transmission system expansion plans, using the Vietnamese power system as an example.