Mathematical model for exploring the effect of demand response on transmission network expansion planning

A transmission network is an important part of the power transformers to transmit the generated energy and power to the load centers. As such, the transmission network requires significant expansion costs to alleviate congestion as well as to supply an acceptable reliability level. In this matter, transmission network expansion planning (TNEP) is known as a large-scale mathematical problem including long-term effects of the power system. In this paper, long-term effect of demand response (DR) is explored on the loading rate of the system as well as subsequent line loading influence on line failure rates. To investigate the DR effectiveness on TNEP, its cost is addressed in the objective of the proposed mixed integer nonlinear planning model. Moreover, alleviating the failure rate of old lines can decrease the construction of new lines while providing the desirable reliability of the system. Furthermore, a decrease in the loading rate of existing transmission lines provides valuable gains at the horizon year. Thus, the value of the transmission system in the objective function would increase by DR. Besides, peak clipping prevents local marginal price (LMP) inflation and smoothens the LMP profile across the system buses; so congestion surpluses will decrease. Afterward, the sensitivity analysis in the simulation part is implemented to investigate how demand response can influence on value of LMP at different nodes. Eventually, the developed model is executed on IEEE 24-bus reliability test system for three scenarios in order to assess the efficiency of the proposed approach.