a network constrained bi-level model for optimal generation expansion planning and optimal determination of feedin tariffs for renewable energy resources

This paper presents a new model for strategic generation expansion planning as well as investor decision making. the generation expansion planning in this paper is including the purchase of a guaranteed power, which is discussed at hl2. the existing problem has a target year (30 years later), which consists of several steps. regarding time periods and strategic behavior of investors, a bi-level model is presented. the upper-level issue involves investment decisions and strategic products with the goal of maximizing investor profit and the lower-level includes market clearing equations aimed at maximizing social welfare. the bi-level model presented using the kkt conditions is converted into a problem of mathematical programming with equilibrium constraints (mpec). in this paper, the contract price of the guaranteed purchase, the market price and the strategic offers as a variable in the problem that are in the output of the problem. the proposed model is implemented on a 6-bus network.