The economics of planning electricity transmission to accommodate renewables: Using two-stage optimisation to evaluate flexibility and the cost of disregarding uncertainty
Author
Abstract
Suggested Citation
DOI: 10.1016/j.eneco.2012.02.015
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Parail, V., 2010. "Properties of Electricity Prices and the Drivers of Interconnector Revenue," Cambridge Working Papers in Economics 1059, Faculty of Economics, University of Cambridge.
- Greene, Nathanael & Hammerschlag, Roel, 2000. "Small and Clean Is Beautiful: Exploring the Emissions of Distributed Generation and Pollution Prevention Policies," The Electricity Journal, Elsevier, vol. 13(5), pages 50-60, June.
- van der Weijde, A.H. & Hobbs, B.F., 2011.
"Planning electricity transmission to accommodate renewables: Using two-stage programming to evaluate flexibility and the cost of disregarding uncertainty,"
Cambridge Working Papers in Economics
1113, Faculty of Economics, University of Cambridge.
- Adriaan Hendrik van der Weijde & Benjamin F. Hobbs, 2011. "Planning electricity transmission to accommodate renewables: Using two-stage programming to evaluate flexibility and the cost of disregarding uncertainty," Working Papers EPRG 1102, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
- Robert J. Lempert & David G. Groves & Steven W. Popper & Steve C. Bankes, 2006. "A General, Analytic Method for Generating Robust Strategies and Narrative Scenarios," Management Science, INFORMS, vol. 52(4), pages 514-528, April.
- Parail, V., 2009. "Can Merchant Interconnectors Deliver Lower and More Stable Prices? The Case of NorNed," Cambridge Working Papers in Economics 0947, Faculty of Economics, University of Cambridge.
- Enzo Sauma & Shmuel Oren, 2006. "Proactive planning and valuation of transmission investments in restructured electricity markets," Journal of Regulatory Economics, Springer, vol. 30(3), pages 358-387, November.
- Vladimir Parail, 2010. "Properties of Electricity Prices and the Drivers of Interconnector Revenue," Working Papers EPRG 1033, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- Hu, Ming-Che & Hobbs, Benjamin F., 2010. "Analysis of multi-pollutant policies for the U.S. power sector under technology and policy uncertainty using MARKAL," Energy, Elsevier, vol. 35(12), pages 5430-5442.
- David E. Bell, 1982. "Regret in Decision Making under Uncertainty," Operations Research, INFORMS, vol. 30(5), pages 961-981, October.
- Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
- Vladimir Parail, 2009. "Can Merchant Interconnectors Deliver Lower and More Stable Prices? The Case of NorNed," Working Papers EPRG 0926, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- Fan, Lin & Hobbs, Benjamin F. & Norman, Catherine S., 2010.
"Risk aversion and CO2 regulatory uncertainty in power generation investment: Policy and modeling implications,"
Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 193-208, November.
- Lin Fan & Benjamin F. Hobbs & Catherine S. Norman, 2010. "Risk Aversion and CO2 Regulatory Uncertainty in Power Generation Investment: Policy and Modeling Implications," Working Papers EPRG 1014, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- Junhua Zhao & John Foster & ZY Dong & KP Wong, 2010. "Flexible transmission network planning considering distributed generation impacts," Energy Economics and Management Group Working Papers 8-2010, School of Economics, University of Queensland, Australia.
- Pollitt, M.G., 2009.
"Electricity Liberalisation in the European Union: A Progress Report,"
Cambridge Working Papers in Economics
0953, Faculty of Economics, University of Cambridge.
- Michael G. Pollitt, 2009. "Electricity Liberalisation in the European Union: A Progress Report," Working Papers EPRG 0929, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- John M. Mulvey & Robert J. Vanderbei & Stavros A. Zenios, 1995. "Robust Optimization of Large-Scale Systems," Operations Research, INFORMS, vol. 43(2), pages 264-281, April.
- Grubb,Michael & Jamasb,Tooraj & Pollitt,Michael G. (ed.), 2008. "Delivering a Low Carbon Electricity System," Cambridge Books, Cambridge University Press, number 9780521888844, January.
- Enzo Sauma & Shmuel Oren, 2006. "Proactive planning and valuation of transmission investments in restructured electricity markets," Journal of Regulatory Economics, Springer, vol. 30(3), pages 261-290, November.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Munoz, Francisco D. & van der Weijde, Adriaan Hendrik & Hobbs, Benjamin F. & Watson, Jean-Paul, 2017.
"Does risk aversion affect transmission and generation planning? A Western North America case study,"
Energy Economics, Elsevier, vol. 64(C), pages 213-225.
- Francisco D. Munoz & Adriaan Hendrik van der Weijde & Benjamin F. Hobbs & Jean-Paul Watson, 2016. "Does risk aversion affect transmission and generation planning? A Western North America case study," Working Papers EPRG 1621, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- Munoz, F. D. & van der Weijde, A. H. & Hobbs, B. F. & Watson, J-P., 2016. "Does risk aversion affect transmission and generation planning? A Western North America case study," Cambridge Working Papers in Economics 1647, Faculty of Economics, University of Cambridge.
- Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S., 2018. "State-of-the-art generation expansion planning: A review," Applied Energy, Elsevier, vol. 230(C), pages 563-589.
- Mausser, Helmut E. & Laguna, Manuel, 1999. "A heuristic to minimax absolute regret for linear programs with interval objective function coefficients," European Journal of Operational Research, Elsevier, vol. 117(1), pages 157-174, August.
- Lavrutich, Maria & Hagspiel, Verena & Siddiqui, Afzal S., 2023. "Transmission investment under uncertainty: Reconciling private and public incentives," European Journal of Operational Research, Elsevier, vol. 304(3), pages 1167-1188.
- Enzo Sauma & Fernando Traub & Jorge Vera, 2015. "A Robust optimization approach to assess the effect of delays in the connection-to-the-grid time of new generation power plants over transmission expansion planning," Annals of Operations Research, Springer, vol. 229(1), pages 703-741, June.
- Farrell, Niall & Devine, Mel T. & Soroudi, Alireza, 2018.
"An auction framework to integrate dynamic transmission expansion planning and pay-as-bid wind connection auctions,"
Applied Energy, Elsevier, vol. 228(C), pages 2462-2477.
- Farrell, Niall & Devine, Mel & Soroudi, Alireza, 2016. "An Auction Framework to Integrate Dynamic Transmission Expansion Planning and Pay-as-bid Wind Connection Auctions," Papers WP523, Economic and Social Research Institute (ESRI).
- Romano, Teresa & Fumagalli, Elena, 2018. "Greening the power generation sector: Understanding the role of uncertainty," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 272-286.
- Henao, A. & Sauma, E. & Reyes, T. & Gonzalez, A., 2017. "What is the value of the option to defer an investment in Transmission Expansion Planning? An estimation using Real Options," Energy Economics, Elsevier, vol. 65(C), pages 194-207.
- Kit Pong Wong, 2023. "A regret theory of investment timing under asymmetric information," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1669-1677, April.
- Georgia Perakis & Guillaume Roels, 2008. "Regret in the Newsvendor Model with Partial Information," Operations Research, INFORMS, vol. 56(1), pages 188-203, February.
- Jinyi Hu, 2023. "Linguistic Multiple-Attribute Decision Making Based on Regret Theory and Minimax-DEA," Mathematics, MDPI, vol. 11(20), pages 1-14, October.
- Sacha Bourgeois-Gironde, 2017.
"How regret moves individual and collective choices towards rationality,"
Chapters, in: Morris Altman (ed.), Handbook of Behavioural Economics and Smart Decision-Making, chapter 11, pages 188-204,
Edward Elgar Publishing.
- Sacha Bourgeois-Gironde, 2017. "How regret moves individual and collective choices towards rationality," Post-Print hal-03993476, HAL.
- Martín Egozcue & Xu Guo & Wing-Keung Wong, 2015.
"Optimal output for the regret-averse competitive firm under price uncertainty,"
Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 279-295, December.
- Broll, Udo & Ergozue, Martin & Welzel, Peter & Wong, Wing-Keung, 2013. "Optimal Output for the Regret-Averse Competitive Firm Under Price Uncertainty," MPRA Paper 51703, University Library of Munich, Germany.
- Simshauser, Paul, 2024.
"On static vs. dynamic line ratings in renewable energy zones,"
Energy Economics, Elsevier, vol. 129(C).
- Paul Simshauser, 2023. "On static vs. dynamic line ratings in renewable energy zones," Working Papers EPRG2321, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- Simshauser, P., 2023. "On Static vs. Dynamic Line Ratings in Renewable Energy Zones," Cambridge Working Papers in Economics 2362, Faculty of Economics, University of Cambridge.
- Jhunjhunwala, Tanushree, 2021. "Searching to avoid regret: An experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 298-319.
- van Dijk, Wilco W. & van der Pligt, Joop, 1997. "The Impact of Probability and Magnitude of Outcome on Disappointment and Elation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 69(3), pages 277-284, March.
- Ming Li & Dipjyoti Majumdar, 2010.
"A Psychologically Based Model of Voter Turnout,"
Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(5), pages 979-1002, October.
- Li, Ming & Majumdar, Dipjyoti, 2006. "A psychologically-based model of voter turnout," MPRA Paper 10719, University Library of Munich, Germany, revised Jun 2008.
- Ming Li & Dipjyoti Majumdar, 2006. "A psychologically-based model of voter turnout," Working Papers 08008, Concordia University, Department of Economics, revised Dec 2008.
- Kobana Abukari & Isaac Otchere, 2020. "Dominance of hybrid contratum strategies over momentum and contrarian strategies: half a century of evidence," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 34(4), pages 471-505, December.
- Fürsch, Michaela & Hagspiel, Simeon & Jägemann, Cosima & Nagl, Stephan & Lindenberger, Dietmar & Tröster, Eckehard, 2013.
"The role of grid extensions in a cost-efficient transformation of the European electricity system until 2050,"
Applied Energy, Elsevier, vol. 104(C), pages 642-652.
- Fürsch, Michaela & Hagspiel, Simeon & Jägemann, Cosima & Nagl, Stephan & Lindenberger, Dietmar & Tröster, Eckehard, 2012. "The role of grid extensions in a cost-efficient transformation of the European electricity system until 2050," EWI Working Papers 2012-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
- Qin, Jie, 2015. "A model of regret, investor behavior, and market turbulence," Journal of Economic Theory, Elsevier, vol. 160(C), pages 150-174.
More about this item
Keywords
Decision making; Electricity; Transmission; Planning; Uncertainty;All these keywords.
JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:2089-2101. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.