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| Main Authors: | , , , , |
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| Format: | Preprint |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2301.00931 |
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Table of Contents:
- This work examines the Generation and Transmission Expansion (GATE) planning problem of offshore grids under different market clearing mechanisms: a Home Market Design (HMD), a zonal cleared Offshore Bidding Zone (zOBZ) and a nodal cleared Offshore Bidding Zone (nOBZ). It aims at answering two questions. 1) Is knowing the market structure a priori necessary for effective generation and transmission expansion planning? 2) Which market mechanism results in the highest overall social welfare? To this end a multi-period, stochastic GATE planning formulation is developed for both nodal and zonal market designs. The approach considers the costs and benefits among stake-holders of Hybrid Offshore Assets (HOA) as well as gross consumer surplus (GCS). The methodology is demonstrated on a North Sea test grid based on projects from the European Network of Transmission System Operators' (ENTSO-E) Ten Year Network Development Plan (TYNDP). An upper bound on potential social welfare in zonal market designs is calculated and it is concluded that from a generation and transmission perspective, planning under the assumption of an nOBZ results in the best risk adjusted return.