Ever since the beginning of the liberalization process of the energy sector and the arrival of electricity markets, decision-making has gone away from centralized planners and has become the responsibility of many different entities such as market operators, private generation companies, transmission system operators, and many more. The interaction and sequence in which these entities make decisions in liberalized market frameworks have led to a renaissance of Stackelberg-type games referred to as bilevel problems, which capture the natural hierarchy in many decision-making processes in power systems. This chapter aims at demonstrating the important insights that such models can provide with respect to transmission expansion planning. Finally, a numerical example is included for illustrative purposes.
|Title of host publication||Transmission Expansion Planning: The Network Challenges of the Energy Transition|
|Place of Publication||Schweiz|
|Publication status||Published - 2021|