Long-Term Congestion Management by Investment in Gas-Turbine Generators: A Cost-Benefit Analysis

Paper in proceeding, 2007

This paper develops of a framework for the evaluation of long-term investment by the independent system operator (ISO) on gas-turbine generators as a tool for congestion management based on the traditional cost-benefit analysis. This involves a planning exercise to optimally decide the locations and sizes of the generators at different buses in the network such that the total cost of investment on gas-turbine and the total system congestion is minimized. A bus-wise cost-benefit analysis is carried by solving iteratively dc optimal power flow (dc-OPF) model. The CIGRE 32-Bus system is used for the case study. It is shown that the long-term decision of the investment on gas-turbine would be very much dependent on the opportunity cost of the gas-turbine with respect to the congestion problem.