Demand Planning and Transmission Network Development in the Capacity Market Using Microgrids

Transmission network development is one of the most important parts of the power system that determines the optimal configuration for the network based on load demand. Expansion of transmission lines is not always cost effective; For this reason, with the growth of demand and shortage of energy resources, Planning of Demand Response has received special attention. In this paper, the role of microgrids as an alternative solution for transmission network development is investigated and a proposed method for modeling microgrids in the capacity market is presented as a solution to the transmission network development planning problem. The results show that the addition of microgrids causes reduction in transmission network development costs. In addition, the addition of microgrids causes a slight increase in the profitability of selling capacity to consumers. These results prove that by continuing to grow the number and capacity of microgrids in each area, it is possible to ultimately eliminate the need for transmission network development and reduce the market cost of capacity to zero.