Energy Markets: Optimization of Transmission Networks

Abstract

We consider the maximization of the welfare function in the process of expansion of the energy transmission network. Production and transportation costs as well as the utility of consumption are taken into consideration. The article presents previously developed methods for the calculation of optimal (or nearly optimal) transmission capacities, flows, and production volumes with a model of a network energy market. We also examine the dynamic problem of optimal expansion of the transmission system given that the demand and cost functions are exogenous for each time interval during the planning period,