Market-Based Transmission Expansion Planning Based on Surplus Percent of Customers

In this paper, first, a new criterion, titled “surplus percent of the customers” is defined for static transmission expansion planning in restructured power systems. Then by a simple example, the new criterion is compared with some already presented market-based criteria and it is shown that the new criterion can realistically evaluate the transmission network expansion from the market view. In this paper the bid of market participants (producers and consumers) to sell and buy power are considered as random variables with known probability density functions. Then the expectation of the surplus percent is introduced as an index for measuring the competitiveness of each transmission expansion plan. Then a least-investment cost expansion plan that increases the surplus percent to its ideal or near ideal value is searched. In this paper a fast method is also presented to calculate the expectation of the surplus percent using Monte-Carlo simulation with a predefined approximation. The results of applying the proposed method are illustrated for an example 8-bus power system.