Application of auction results to power system expansion

Abstract

Auction results reflect the market condition at the time the auction is performed. The market condition consists not only of electricity demand and supply at that period, but also includes the transmission network condition at that period. The network condition plays a major role in the auction results. If some transmission lines are congested, it can interfere with the desired operation of the network; e.g., block the transaction from the inexpensive sources to the high demand areas. Because of these reasons, an independent contract administrator (ICA) may wish to consider auction results when making decisions related to power system expansion. This work outlines a framework of applying a decision analysis approach to the auction results in selecting the expansion plan for the system.