Planning Beyond Reliability - Economics Driven Transmission Planning Under Market Environment: Fundamentals, Applications, Benchmark and Challenges Session 2: Production Cost Modeling, Simulation and Benchmark (Video)

This tutorial will provide a comprehensive overview of economic transmission planning process, methodology, and applications using production cost simulation tool. It will firstly introduce the economic transmission planning principles and process, and review fundamentals of production cost simulation tools. Electricity market fundamentals will also be reviewed and its significance in economic transmission planning will be explained. The challenges brought by high renewable penetration and the role of transmission planning will be discussed in detail. Industry study processes and resulting real world transmission investment will be reviewed. Next, the tutorial will go in-depth to discuss model building assumptions, process, quality control, and benchmark. In addition, the interdependency between load, wind, solar, and storage will be discussed. Lastly, challenges facing economic transmission planning and production cost simulation will be discussed. The tutorial will use MISO as the primary example, supplemented with contents from other ISO/RTOs.