Reliability constrained generation expansion planning with consideration of wind farms uncertainties in deregulated electricity market

This paper addresses reliability constrained generation expansion planning (GEP) in the presence of wind farm uncertainty in deregulated electricity market. The proposed GEP aims at maximizing the expected profit of all generation companies (GENCOs), while considering security and reliability constraints such as reserve margin and loss of load expectation (LOLE). Wind farm uncertainty is also considered in the planning and GENCOs denote their planning in the presence of wind farm uncertainty. The uncertainty is modeled by probability distribution function (PDF) and Monte-Carlo simulation (MCS) is used to insert uncertainty into the problem. The proposed GEP is a constrained, nonlinear, mixed-integer optimization programming and solved by using particle swarm optimization (PSO) method. In this paper, Electricity market structure is modeled as a pool market. Simulation results verify the effectiveness and validity of the proposed planning for maximizing GENCOs profit in the presence of wind farms uncertainties in electricity market. (C) 2013 Elsevier Ltd. All rights reserved.