A New Approach for Transmission Expansion Planning in Competitive Electricity Markets

Expansion planning strategies in power systems have been seriously influenced by disintegration of these systems during the past decade. Transmission Expansion Planning (TEP) is one of the most important parts of expansion planning of power systems. In this paper, a new algorithm for TEP in these environments is presented. The method is based on probabilistic Locational Marginal Price (LMP) considering electrical losses, transmission tariffs and transmission congestion costs. Incorporating modeling of reactive power and
uncertainty of generation and load are other important features of the proposed algorithm