Developing concurrent investment plans for power generation and transmission

The problem subsumes the capacitated network location problem and the network design problem, the former being related to decisions on generation expansion and the latter to decisions on transmission network expansion. The integrated model becomes NP in both feasibility and optimality, because of the sub-problems it contains. Here, a practical procedure is proposed to achieve overall feasibility and also to improve investment decisions when the solution is feasible. The model is tested on the dense interconnected network of an industrialized region in Turkey. The implementation shows how future infeasibilities in the transmission network are highlighted by the model and how generation investment decisions are affected by network expansion alternatives.