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An auction framework to integrate dynamic transmission expansion planning and pay-as-bid wind connection auctions
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File | Description | Size | Format | |
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FarrellDevineSoroudi_20180605 (1).pdf | 1.96 MB |
Author(s)
Date Issued
15 October 2018
Date Available
07T11:30:34Z January 2019
Abstract
Competitive renewable energy procurement auctions are becoming increasingly prevalent. In a pay-as-bid auction, investors bid the price support required and receive that price if successful. Bidding strategy may be influenced by factors external to the auction, such as transmission expansion planning decisions. This may increase costs. In this paper, we show that integrating a pay-as-bid auction with transmission expansion planning may allow for closer total system cost minimisation over many time periods. This paper develops an auction mechanism and associated modelling framework to carry this out. The contributions of this framework are verified using a numerical example. Our results show that ignoring generation costs in transmission expansion planning can have economic consequences, while traditional pay-as-bid auctions can benefit from incorporating features associated with transmission expansion planning, such as multi-period optimisation. Full integration of both modelling frameworks can lead to efficiency improvements, both in terms of reduced investor rent-seeking and a more efficient deployment path.
Sponsorship
European Commission Horizon 2020
European Commission - European Regional Development Fund
Science Foundation Ireland
University College Dublin
Other Sponsorship
Programme for Research in Third-Level Institutions (PRTLI) Cycle 5
Oxford Martin Programme on Integrating Renewable Energy
ESRI Energy Policy Research Centre
Type of Material
Journal Article
Publisher
Elsevier
Journal
Applied Energy
Volume
228
Start Page
2462
End Page
2477
Copyright (Published Version)
2018 Elsevier
Language
English
Status of Item
Peer reviewed
ISSN
0306-2619
This item is made available under a Creative Commons License
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