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Cooperation in Transmission Expansion Planning: Enhancing Grid Reliability and Efficiency Under a Changing Climate

Electricity grids are challenged to maintain reliability during more intense and frequent extreme weather events due to climate change. This challenge is exacerbated by multi-sector electrification and power sector decarbonization through increased reliance on variable renewable energy, which necessitates the expansion of transmission infrastructure. However, transmission expansion planning is often complicated by intertwined planning authorities and jurisdictions, and allocation of large capital investment needs. These factors cause authorities to manage transmission investments individually (i.e., only/mostly intraregional planning), which can lead to suboptimal transmission networks. This study investigates the potential benefits of cooperative transmission expansion planning (i.e., both intraregional and interregional planning that optimizes transmission investments across the entire physical system). Using sectoral and economic optimization, and machine learning models, it analyzes the impact of different levels of cooperation among transmission planning regions within U.S. Western Interconnection in 2019 and 2059 via an iterative investment process. Furthermore, it examines the effects of future climate change on transmission cooperation by simulating historical heat waves from 2019 under conditions of 2059. The results indicate that cooperative transmission planning leads to lower wholesale electricity prices, decreased energy outages, and reduced greenhouse gas emissions. However, the advantages of collaboration diminish during widespread heat waves, despite remaining beneficial especially for regions like California Independent System Operator with substantial solar installations. The study underscores the importance of transmission cooperation in reducing costs and enhancing reliability, emphasizing the need for strategic investments in storage to address challenges posed by future extreme weather events with varying spatial scales.

Capacity Expansion Model

Investigating the effects of cooperative transmission expansion planning on grid performance during heat waves with varying spatial scales

There is growing recognition of the advantages of interregional transmission capacity to decarbonize electricity grids. A less explored benefit is potential performance improvements during extreme weather events. This study examines the impacts of cooperative transmission expansion planning using an advanced modeling chain to simulate power grid operations of the United States Western Interconnection in 2019 and 2059 under different levels of collaboration between transmission planning regions. Two historical heat waves in 2019 with varying geographical coverage are replayed under future climate change in 2059 to assess the transmission cooperation benefits during grid stress. The results show that cooperative transmission planning yields the best outcomes in terms of reducing wholesale electricity prices and minimizing energy outages both for the whole interconnection and individual transmission planning regions. Compared to individual planning, cooperative planning reduces wholesale electricity prices by 64.3 % and interconnection-wide total costs (transmission investments + grid operations) by 34.6 % in 2059. It also helps decrease greenhouse gas emissions by increasing renewable energy utilization. However, the benefits of cooperation diminish during the widespread heat wave when all regions face extreme electricity demand due to higher space cooling needs. Despite this, cooperative transmission planning remains advantageous, particularly for California Independent System Operator with significant diurnal solar generation capacity. This study suggests that cooperation in transmission planning is crucial for reducing costs and increasing reliability both during normal periods and extreme weather events. It highlights the importance of optimizing the strategic investments to mitigate challenges posed by wider-scale extreme weather events of the future.

24 POWER TRANSMISSION AND DISTRIBUTION

Cooperative Transmission Expansion Planning Experiment Data and Results

GO WEST is an open-source power grid modeling framework for U.S. Western Interconnection, which allows users to tailor the model depending on their research study and science questions. It covers 28 balancing authorities (BA) and 12 states in U.S. Western Interconnection. GO WEST allows users to select different number of nodes and come up with a simplified network by utilizing 10,000 nodal topology of U.S. Western Interconnection created by Texas A&M University. Users can try and select different number of nodes, mathematical formulations (linear programming vs. mixed-integer linear programming), transmission line limit scaling factors, and hurdle rate scaling factors. GO WEST offers a unit commitment and economic dispatch (UC/ED) module to simulate grid operations on an hourly scale. In this sense, users can calibrate and validate their model versions by comparing model outputs to historical datasets. TEP is an open-source transmission capacity expansion model, built on GO WEST framework. It utilizes linear programming to optimize transmission capacity addition investment on existing lines within GO WEST framework. In this sense, TEP model only increases the thermal capacity of existing transmission lines and does not add new lines to the system, which leaves the topology preserved. TEP minimizes the total cost of the system which comprises the operational cost of satisfying electricity demand (i.e., generation cost), cost of loss of load (i.e., unserved energy), cost of power flow, and cost of new transmission capacity additions (i.e., investment cost). In order to use TEP model, users need to create scenarios with GO WEST framework. In this analysis, outputs from several models are used to create future inputs to GO WEST and TEP models, including GCAM-USA, TELL, CERF and reV. This dataset includes experiment inputs and outputs from three different transmission expansion scenarios (cooperative, intermediate, and individual) for 2019 and 2059. For 2019, a base scenario to illustrate the default (i.e., historical) power grid operations is also included. This study utilizes rcp45hotter_ssp3 scenario from a previous version of GCAM-USA simulations. Sources of the shapefiles in supplementary data are HIFLD Open and U.S. Energy Atlas. Please see the README file for a detailed description of the main and supplementary data.

Capacity Expansion Model

Informing Transmission Supply Chain Needs from National Transmission Studies

Recent national studies indicate significant transmission expansion can provide the lowest-cost option to maintain grid reliability while meeting growing demand. However, constraints in domestic supply chains may limit grid expansion across the U.S., with higher costs and longer delays for required transmission equipment. Despite growing evidence of supply chain constraints for transmission components, transmission planning studies often assume transmission equipment is readily available for deployment or analyze future demand using historical trade and manufacturing data that may not capture evolving grid needs. This report aims to address this gap by demonstrating methods to quantify future demand for critical transmission components and input materials from national-scale planning models. These components include power transformers, generator step-up transformers, converter transformers, conductors, circuit breakers, and transmission towers and the materials include aluminum, steel, grain-oriented electrical steel (GOES), and copper. The analytical approach is applied to two nodal transmission expansion scenarios from the National Transmission Planning Study (NTP) to illustrate the methods. These scenarios represent different transmission expansion strategies for the contiguous U.S. to the year 2035: the Alternating Current (AC) scenario includes AC transmission expansion within each interconnection and the Multiterminal (MT) scenario includes interregional transmission expansion across the country using both AC and multiterminal HVDC options between neighboring zones. We also explore potential heuristics to derive transmission component demand from zonal capacity expansion models (CEMs) with coarse representation of the transmission grid.

24 POWER TRANSMISSION AND DISTRIBUTION

Informing Transmission Supply Chain Needs from National Transmission Studies

Recent national studies indicate significant transmission expansion can provide the lowest-cost option to maintain grid reliability while meeting growing demand. However, constraints in domestic supply chains may limit grid expansion across the U.S., with higher costs and longer delays for required transmission equipment. Despite growing evidence of supply chain constraints for transmission components, transmission planning studies often assume transmission equipment is readily available for deployment or analyze future demand using historical trade and manufacturing data that may not capture evolving grid needs. This report aims to address this gap by demonstrating methods to quantify future demand for critical transmission components and input materials from national-scale planning models. These components include power transformers, generator step-up transformers, converter transformers, conductors, circuit breakers, and transmission towers and the materials include aluminum, steel, grain-oriented electrical steel (GOES), and copper. The analytical approach is applied to two nodal transmission expansion scenarios from the National Transmission Planning Study (NTP) to illustrate the methods. These scenarios represent different transmission expansion strategies for the contiguous U.S. to the year 2035: the Alternating Current (AC) scenario includes AC transmission expansion within each interconnection and the Multiterminal (MT) scenario includes interregional transmission expansion across the country using both AC and multiterminal HVDC options between neighboring zones. We also explore potential heuristics to derive transmission component demand from zonal capacity expansion models (CEMs) with coarse representation of the transmission grid.

24 POWER TRANSMISSION AND DISTRIBUTION

Synergies and trade-offs between storage, transmission, and sector coupling in high renewable energy systems

Energy storage, transmission, and sector coupling are some prominent flexibility solutions to support variable renewable energy (VRE) integration. However, investment cost uncertainties and public acceptance could hamper the deployment of these flexibility solutions. This raises questions about the development and cost-effectiveness of future energy systems, especially on how the dependence on local and cross-border solutions of flexibility would evolve if the uptake of these solutions is restricted. In this context, this paper identifies the synergies among flexibility options under restrictions on transmission expansion or increased costs of energy storage. It contributes to determining whether investments in energy storage and/or transmission expansion offer the least-cost transition and investigates the impact of sector coupling on these solutions. A long-term energy system planning and optimisation model towards 2050 is developed using the open-source energy system optimisation tool Balmorel, and a case study of the countries surrounding the Baltic Sea and the North Sea is established. Five cases with restrictions imposed on transmission expansion and higher energy storage technology costs are analysed at different levels of sector coupling. The results highlight the importance of transmission expansion at all levels of sector coupling. As the level of sector coupling increases, uncertainties around the cost of energy storage drive the least-cost pathways. Optimal investment solutions are found to have a mix of transmission and energy storage in capacity expansion at all levels of sector coupling.

24 POWER TRANSMISSION AND DISTRIBUTION

What Can We Learn from US National Transmission Studies?

Multiple US regions have announced new electricity transmission plans, are actively revisiting the future role of transmission, and could benefit from findings from recent national-scale transmission studies. A review of seven national studies shows that significant transmission expansion is cost-optimal for serving new demand, integrating additional resources, and supporting grid reliability. A majority of the reviewed scenarios, which span a range of policy and technology assumptions, include at least a doubling of the transmission system by 2050. The national studies find substantial net system cost savings from transmission expansion and high benefit-cost ratios for transmission investments. The results are derived through multi-value, nationally coordinated, co-optimized, multi-scenario modeling, which is an approach that could yield lower-cost pathways compared to current industry planning practices.

24 POWER TRANSMISSION AND DISTRIBUTION

IDAES GTEP 0.1 Release

The Institute for the Design of Advanced Energy Systems (IDAES) Generation and Transmission Expansion Planning (GTEP) package provides a Pyomo-based implementation of a modular, flexible, Generalized Disjunctive Programming (GDP) formulation for power infrastructure planning problems. This package is designed with the following goals in mind: - Abstract GTEP modeling away from any particular case study or fixed modeling assumptions (e.g., technologies, temporal resolution, spatial resolution, policy implications, etc.) - Admit flexible decision sets and heterogeneous parameterization - Allow high-level modeling options to be understood easily, chosen modularly, and changed rapidly

AS

The value of long-duration energy storage under various grid conditions in a zero-emissions future

Long-duration energy storage (LDES) is a key resource in enabling zero-emissions electricity grids but its role within different types of grids is not well understood. Using the Switch capacity expansion model, we model a zero-emissions Western Interconnect with high geographical resolution to understand the value of LDES under 39 scenarios with different generation mixes, transmission expansion, storage costs, and storage mandates. We find that a) LDES is particularly valuable in majority wind-powered regions and regions with diminishing hydropower generation, b) seasonal operation of storage becomes cost-effective if storage capital costs fall below US$\$$5 kWh −1 , and c) mandating the installation of enough LDES to enable year-long storage cycles would reduce electricity prices during times of high demand by over 70%. Given the asset and resource diversity of the Western Interconnect, our results can provide grid planners in many regions with guidance on how LDES impacts and is impacted by energy storage mandates, investments in LDES research and development, and generation mix and transmission expansion decisions.

25 ENERGY STORAGE

Parallel computing for power system climate resiliency: Solving a large-scale stochastic capacity expansion problem with mpi-sppy

Here we propose a nodal stochastic generation and transmission expansion planning model that incorporates the output from high-resolution global climate models through load and generation availability scenarios. We implement our model in Pyomo and perform computational studies on a realistically-sized test case of the California electric grid in a high performance computing environment. We propose model reformulations and algorithm tuning to efficiently solve this large problem using a variant of the Progressive Hedging Algorithm. We utilize the parallelization capabilities and overall versatility of mpi-sppy, exploiting its hub-and-spoke architecture to concurrently obtain inner and outer bounds on an optimal expansion plan. Initial results show that instances with 360 representative days on a system with over 8,000 buses can be solved to within 5% of optimality in under 4 h of wall clock time, a first step towards solving a large-scale power system expansion planning problem across a wide range of climate-informed operational scenarios.

24 POWER TRANSMISSION AND DISTRIBUTION

Long-Term Impacts of Constrained Transmission Deployment on the Cost-Reliability Tradeoff

Traditional Resource Adequacy (RA) frameworks in the U.S. undervalue the contributions of inter-regional transmission to resource adequacy during stress periods, focusing on the availability of nameplate capacity instead. However, availability of nameplate capacity does not always translate into electricity delivery, especially during tail events. Moreover, the rapid deployment of energy-limited resources and increasing electricity demand challenge existing resource adequacy frameworks and couple regional electricity demand and availability of supply via transmission. We propose a two-stage framework that goes beyond the existing capacity-centered approaches to reveal the RA contributions of transmission. In the first stage we introduce a multi-objective optimization framework to quantify the merits of transmission expansion via Pareto Frontiers under alternative futures of no transmission investment, primary energy resources availability and demand growth. The second stage focuses on tail events and leverages the results of the first stage to characterize the risk profile of regional consumers across the U.S. under the alternative energy futures. We find that no new transmission can lead to a more expensive and less reliable national grid across scenarios, however, the impact on regional RA can vary. The probabilistic analysis reveals that transmission investments can alleviate the tail risk of consumers, however, the availability of fuel resources does not always alleviate regional tail risks. Our findings inform policymakers and utilities on the prioritization of transmission investments to mitigate the risk of widespread outages, also for tail events, and ensure reliable and affordable electricity delivery to all.

24 POWER TRANSMISSION AND DISTRIBUTION

Western Interconnection Baseline Study

The purpose of the baseline study is to evaluate the degree to which current industry planning processes meet the national 2035 decarbonization goals for the Western Interconnection. This analysis serves as a comparative baseline for the scenario analysis conducted in the NTP Study using a Western Interconnection dataset that is readily available to industry. This baseline analysis differs from the production cost modeling analysis and power flow analysis in the main NTP Study report (forthcoming). In particular, the analysis presented in this report reflects a business-as-usual future with an optimistic build out of specific planned transmission projects and foreseeable generation. In contrast, the NTP Study models a future generation and transmission expansion based on optimization from a capacity expansion model. The analysis presented herein also reflects a 2030 timeframe, whereas the main NTP Study production cost modeling analysis and power flow analysis reflect a 2035 time frame. This baseline analysis utilizes industry’s most reliable data to account for future transmission projects across various stages of development, with a particular focus on those in the permitting stage. Additionally, it incorporates projections for changes in generation capacity (both additions and retirements). This baseline analysis outlines a probable trajectory, given current process and practice, for the future of the bulk power system with a horizon extending to 2030.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Evolving Competitive Markets in SAPP: Leveraging Competitive Wholesale Electricity Markets to Drive Renewable Generation Capacity in the Southern African Power Pool (SAPP)

The SADC region has significant natural resource potential to increase renewable energy generation, improve electricity reliability, and support economic development. This research finds an apparent lack of confidence from electricity infrastructure investors in SAPP wholesale electricity markets, which increases risk perception and lowers the likelihood of capital deployment. With respect to free market fundamentals, competitive market obstacles and renewable energy development obstacles are characterized. Stakeholders identified the top obstacles to well-functioning competitive markets as insufficient transmission infrastructure for interconnection and regional movement of electricity, dominance of national single-buyer markets, and lack of or weak nation-state regulatory frameworks. Stakeholders prioritized the top three obstacles for renewable energy development as a lack of viable commercial arrangements for variable renewable energy (VRE) balancing, lack of functional and consistent nation-level regulations, and higher project costs related to reliance on imported equipment. With respect to potential solution options, stakeholders prioritized the development of new cost allocation and finance methods to facilitate new transmission expansion, training to educate new or potential new market entrants on SAPP processes, as well as modeling and analysis of regional SAPP participation benefits disaggregated to the nation-state level. From these perspectives, this research identified strategy options for consideration including transitioning SAPP to a regional transmission operator (RTO) for operation and planning of cross-border transmission facilities and market administration, shifting operations of SAPP member transmission systems to Independent System Operators (ISOs), establishing a regional regulatory authority and enhancing market data transparency. Implementing these reforms is expected to be challenging, but not insurmountable, given the domestic political, legal, and jurisdictional complexities of the SADC region.

29 ENERGY PLANNING, POLICY, AND ECONOMY

National Transmission Planning Study - Chapter 5: Stress Analysis for 2035 Scenarios

The National Transmission Planning Study (NTP Study) is presented as a collection of six chapters, each of which is listed next. The NTP Study was led by the U.S. Department of Energy's Grid Deployment Office, in partnership with the National Renewable Energy Laboratory and Pacific Northwest National Laboratory. Chapter 5: Stress Analysis for 2035 Scenarios (this chapter) outlines how the future transmission expansions perform under stress tests.

24 POWER TRANSMISSION AND DISTRIBUTION

Improved Evaluation of Large Network Matrices for Linear Power Flow Within Optimization Problems

This work presents methods for evaluating the Power Transfer Distribution Factor (PTDF) and Line Outage Distribution Factor (LODF) matrices by employing sparse linear algebra for large-scale computing applications. These matrices play a critical role in many power system applications, such as the Unit Commitment Problem (UC), pre- and post-contingency power flow analysis, and transmission expansion. These matrices are typically dense, which means they require a significant amount of time and memory to be computed for large networks. However, by analyzing the structure of the matrices and their computation method, it is possible to use reduced memory methods based on sparse matrix operations. This paper shows that sparse linear algebra algorithms are faster and require less memory and time than traditional dense approaches. Additionally, we explore the effect of matrix sparsification by eliminating trailing digits on power flow calculations.

large scale

Multi-parametric analysis for mixed integer linear programming: An application to transmission upgrade and congestion management

Upgrading the capacity of existing transmission lines is essential for meeting the growing energy demands, facilitating the integration of renewable energy, and ensuring the security of the transmission system. This study focuses on the selection of lines whose capacities and by how much should be expanded from the perspective of the Independent System Operators (ISOs) to minimize the total system cost. We employ advanced multi-parametric programming and an enhanced branch-and-bound algorithm to address complex mixed-integer linear programming (MILP) problems, considering multi-period time constraints and physical limitations of generators and transmission lines. To characterize the various decisions in transmission expansion, we model the increased capacity of existing lines as parameters within a specified range. This study first relaxes the binary variables to continuous variables and applies the Lagrange method and Karush-Kuhn-Tucker (KKT) conditions to obtain optimal solutions and identify critical regions associated with active and inactive constraints. Moreover, we extend the traditional branch-and-bound (B&B) method by determining the problem’s upper and lower bounds at each node of the B&B decision tree, helping to manage computational challenges in large-scale MILP problems. Here, we compare the difference between the upper and lower bounds to obtain an approximate optimal solution within the decision-makers’ tolerable error range. In addition, the first derivative of the objective function on the parameters of each line is used to inform the selection of lines for easing congestion and maximizing social welfare. Finally, the capacity upgrades are selected by weighing the reductions in system costs against the expense of upgrading line capacities. The findings are supported by numerical simulations and provide transmission-line planners with decision-making guidance.

24 POWER TRANSMISSION AND DISTRIBUTION