@inproceedings{967f64bfc23140c49ebc65f6fc660f91,
title = "What is the benefit of including uncertainty in transmission planning? A WECC case study",
abstract = "The electricity industry has undergone a series of radical economic, policy, and technology changes over the past several decades. More changes are to come, to be sure, but their nature and magnitude is highly uncertain. Such changes in market fundamentals profoundly impact the economic value of transmission. This paper quantifies the economic value of stochastic programming for transmission planning over a multidecadal time horizon, considering how generation investment reacts to network reinforcements and how the grid can be adapted later on as circumstances change. The economic value is the difference between the probability-weighted present worth of cost of (1) a stochastic model that chooses first-stage (through 2024) lines to minimize that cost and (2) a stochastic model whose 2024 lines are constrained to be those that were chosen by a suboptimal process, such as deterministic decision making. Even considering a small number of scenarios can drastically improve solutions.",
keywords = "Electricity transmission, Risk management, Stochastic optimization, Utility planning",
author = "Hobbs, {Benjamin F.} and Saamrat Kasina and Qingyu Xu and Park, {Sang Woo} and Jasmine Ouyang and Ho, {Jonathan L.} and Donohoo-Vallett, {Pearl E.}",
note = "Publisher Copyright: {\textcopyright} 2016 IEEE.; 49th Annual Hawaii International Conference on System Sciences, HICSS 2016 ; Conference date: 05-01-2016 Through 08-01-2016",
year = "2016",
month = mar,
day = "7",
doi = "10.1109/HICSS.2016.295",
language = "English (US)",
series = "Proceedings of the Annual Hawaii International Conference on System Sciences",
publisher = "IEEE Computer Society",
pages = "2364--2371",
editor = "Sprague, {Ralph H.} and Bui, {Tung X.}",
booktitle = "Proceedings of the 49th Annual Hawaii International Conference on System Sciences, HICSS 2016",
address = "United States",
}