Author: Cheuk-Wing Lee

Publisher: Open Dissertation Press

Published: 2017-01-27

Total Pages:

ISBN-13: 9781361469835

This dissertation, "Transmission Expansion Planning in a Restructured Electricity Market" by Cheuk-wing, Lee, 李卓穎, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of thesis entitled "Transmission Expansion Planning in a Restructured Electricity Market" Submitted by Lee Cheuk Wing for the degree of Master of Philosophy at The University of Hong Kong in June 2007 Transmission expansion planning has been transformed by the restructuring of the power industry, and has become much more complicated as a result of the conflicting objectives and uncertainties which have been exposed by the electricity market. Transmission expansion planning has to change to deal with these new challenges. This thesis first organizes and classifies existing methods of transmission expansion planning, including both transmission planning and transmission investment in both regulated and deregulated environments, so as to facilitate future research in this area. Due to the restructuring of the power industry, transmission companies have lost their incentive to invest in transmission systems. Therefore, a value-based transmission expansion planning algorithm is proposed. The algorithm uses the probability density functions of locational marginal prices to handle the changes in power flow patterns due to the varied offering prices set by generation companies strategically. Unfortunately, it does not consider non-random uncertainties, and a scenario technique has therefore been included into the proposed algorithm to make it more realistic. In the thesis, transmission investment is assumed to be open to the public in a merchant and regulated transmission investment pattern in both risk-free and risky investing environments. In a risk-free investing environment, a transmission company is able to increase revenue with increased risk. In a risky investing environment, transmission companies can increase return with higher risk, reduce their return with lower risk or fix their return with original risk. Public investors have fixed a rate of return in a risk-free environment, but face an uncertain rate of return in a risky environment. By using the portfolio theory, public investors can hedge their risks by investing in transmission expansion projects and other assets. In conclusion, both transmission planning and transmission investment should be studied and improved to meet the challenges facing the power industry and enhance market performance. Both areas are investigated in this thesis, and new ideas in both areas are proposed. DOI: 10.5353/th_b3895941 Subjects: Electric power transmission - Econometric models Electric power distribution - Econometric models Electric industries - Deregulation