Recent advances and challenges in optimization models for expansion planning of power systems and reliability optimization

Optimization models for expansion planning of power systems aim to determine capacities, investment timing, and location of power systems to satisfy the power demands while minimizing the total cost. The models have become complex in recent years to reflect both regulations on conventional energy sources and the increasing penetration of renewable energy sources (RES). This paper reviews the basic concepts and optimization models for expansion planning of power systems. We first explain the definition and features of generation expansion planning (GEP), transmission expansion planning (TEP), and generation and transmission expansion planning (GTEP). To address the computational challenges of large-scale expansion planning problems, we review several simplifications including temporal and spatial aggregation, and decomposition methods. This paper also addresses power system reliability defined as the probability of satisfying the load demand while withstanding failures of components. The goal of this paper is to provide a research overview, discuss trends in expansion planning of power systems, and suggest directions for future research.