A Benders decomposition algorithm for a multi‐area, multi‐stage integrated resource planning in power systems

The aim of this paper is to propose an integrated model for resource planning in power systems by taking into account both supply and demand sides options simultaneously. At supply‐side, investment in generation capacity and transmission lines is considered. Demand side management (DSM) technologies are also incorporated to correct the shape of the load duration curve in terms of peak clipping and load shifting programmes. A mixed integer non‐linear programming model is developed to find the optimal location and timing of electricity generation/transmission as well as DSM options. To solve the resulting complex model, nonlinearity caused by transmission loss terms are first eliminated using the piecewise linearization technique. Then, a Benders decomposition (BD) algorithm is developed to solve the linearized model. The performance of the proposed BD algorithm is validated via applying it to the 6‐bus Garver test system and a modified 21‐bus IEEE reliability test system.