Interpreting the Value of Flexibility in AC Security-Constrained Transmission Expansion Planning via a Cooperative Game Framework

TL;DR

This paper introduces a cooperative game-based tool for interpreting the value of flexibility in transmission expansion planning, aiding system planners in prioritizing investments by quantifying contributions to system reliability and cost reduction.

Contribution

It develops a novel SCTEP framework that quantifies and ranks the value of flexibility sources, such as energy storage, in system planning decisions.

Findings

Flexibility significantly reduces expected system costs.

Flexibility providers are ranked based on their contribution to reliability.

The method helps prioritize investments with higher impact.

Abstract

Security-constrained transmission expansion planning (SCTEP) is an inherently complex problem that requires simultaneously solving multiple contingency states of the system (usually corresponding to N-1 security criterion). Existing studies focus on effectively finding optimal solutions; however, single optimal solutions are not sufficient to interpret the value of flexibility (e.g., from energy storage systems) and support system planners in well-informed decision making. In view of planning uncertainties, it is necessary to estimate the contributions of flexibility to various objectives and prioritise the most effective investments. In this regard, this work introduces a SCTEP tool that enables interpreting the value of flexibility in terms of contributions to avoided load curtailment and total expected system cost reduction. Inspired by cooperative game theory, the tool ranks the contributions of flexibility providers and compares them against traditional line reinforcements. This information can be used by system planners to prioritise investments with higher contributions and synergistic capabilities.