EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.

C. Contaxis

ELECTRICAL NETWORK OPTIMIZATION

J. Kabouris
Hellenic Transmission System Operator (HTSO), Greece

G. C. Contaxis
National Technical University of Athens (NTUA), Greece

Keywords: Electric Power Systems, Transmission System, Security Assessment,

Operation optimization, Optimal operating mode, Mathematical Programming.

Contents

1. Introduction
2. Transmission System Optimal Expansion Planning

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3. Transmission System Operational Requirements

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4. Statement of the Optimization Problem
4.1 Problem Statement
4.2 Formulation
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4.3 Modelling of Planning Criteria
4.4 Technical Planning Constraints
5. Optimization Methodologies
6. Conclusion
Glossary
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Bibliography
Biographical Sketches
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Summary

Electrical network optimization refers to the determination of the necessary network

reinforcements that guarantee the security of supply to electrical loads. This
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optimization follows the Least Cost Planning concept for both distribution and
transmission systems. The optimal transmission system expansion planning is the most
important, but representative as well, electrical network optimization problem (and it is
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deeply analyzed in detail). It is a quite interesting but complicated optimization problem

since it is influenced by numerous factors and parameters (technical, environmental,
financial, social, etc.). The criteria used to determine the optimum expansion plan
may vary significantly according to the specific system conditions and the organization
of the Electricity Supply Industry. In all cases, optimization is performed with respect to
technical constraints that reflect mainly security criteria.

1. Introduction

Electric network is the set of devices used to transport electric power from the power
plants to the consumers. These devices include OverHead transmission Lines (OHL),
underground or submarine cables, switching equipment (breakers and disconnectors),
substations (i.e. subsystems equipped with transformers and autotransformers that allow
the power transfer between systems operating at different voltage levels) and reactive

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EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.
C. Contaxis

power compensation devices (capacitors and reactors). OHLs and cables are modeled as
branches while busbars at substations are modeled as nodes in a node-branch model.
This network is distinguished into two subsystems, namely the transmission system and
the distribution system.
Transmission system (OHLs, cables and their switching equipment) accommodates the
transfer of bulk quantities of electric power (hundreds or thousands MW) in long
distances (hundreds or thousands km) from the generation sites to high voltage
substations located near the load areas. These substations are the boundaries of the
transmission system where electric power is transferred to the distribution system(s)
through transformers. Transmission systems operate at high voltage levels (from 150 kV
up to 1000kV) and their structure involves closed loops that allow higher reliability in
transferring the electric power from the generators to the loads.

Distribution networks are used to distribute rather smaller quantities of power (tens of
MWs) in rather short distances (up to 30-40 km). They transfer power from the high

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voltage substations to the distribution substations (very close to the end-users) using

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similar devices as the transmission systems. Distribution systems operate at medium
voltage levels (from 3 kV up to 110 kV) and in the majority of the cases they are
operated in a radial structure.
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Historically, electricity networks have been developed during past decades; during this
period the Electricity Supply Industry (ESI) was dominated by vertically integrated
electricity companies (production, transmission, distribution) operating at National or
Regional level in a monopolistic regime. In the last decade, especially in developed
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countries, ESI is in a procedure towards de-regulation (liberalization) and establishment

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of an electricity market. Electricity is considered a commodity which is freely traded

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in a market. Several actors may participate in electricity markets such as producers,

loads, suppliers, distributors, traders, etc. Competition has been established mainly in
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production and trading. Under this new environment electricity networks are common
carriers that serve all market participants and they are considered (in most of the cases)
as natural monopolies. Power transmission and distribution are considered as services
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which are properly remunerated by the users of the corresponding system(s). Since
electricity networks structure and operation (mainly transmission systems) may
influence the power transfers from the generators to the loads and consequently the
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operation of the markets, their operation has to be transparent and non-discriminatory.

To guarantee transparency and avoid any discrimination, transmission systems in
liberalized markets are under the responsibility of Transmission Companies
(TRANSCOs) or Transmission System Operators (TSOs) which are enterprises
independent of the market participants. Accordingly, Distribution System Operators
(DSOs) have been established for the distribution activities. The main activities of these
organizations are the operation and the expansion planning of the transmission and the
distribution systems correspondingly, which are performed under specific legislation
(Grid Codes).

Optimization of electricity networks is of major importance since they are the main
infrastructure to serve electricity markets and their operation affects all the ESI
participants. This optimization follows the Least Cost Planning principles, i.e. the
minimization of the total cost of operation plus investment over a long planning

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EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.
C. Contaxis

horizon. The problem of the transmission system optimal expansion planning is not only
the most important but quite interesting and complicated one and it is presented in the
next sections. Distribution system optimization follows similar concepts.

2. Transmission System Optimal Expansion Planning

Due to the temporal and spatial distribution of both the generating units and the loads,
transmission systems play a key-role in security of supply and influence significantly
the ESI. The continuous increase of electricity demand requires the expansion and
reinforcement of the existing transmission systems in order to accommodate the
increasing transmission needs. Expansion of transmission systems includes the
installation of new devices (mainly OHLs and cables) or the reinforcement of existing
transmission corridors and the upgrade of existing substations.

In both monopolies and de-regulated markets, planning of transmission expansion is a

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major issue and it is performed in long-term time horizon following the Least Cost

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Planning principles. Some crucial factors should be underlined here:

investments in transmission systems are usually not profitable; they require high
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capital cost while the pay-back period is usually significant (up to 40 years);

the realization of new transmission projects requires considerably long time

(possibly several years). This is mainly due to the licensing procedures and the
expropriations needed, but also due to the increasing protest by the public to the
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erection of the projects (especially in developed countries). Besides, there is a

significant construction phase especially for long overhead lines.
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3. Transmission System Operational Requirements

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For a better understanding of the methodologies applied for the transmission systems
planning, it is crucial to define the operational requirements set by the transmission
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system operators. Although they may vary significantly among the transmission system
operators, the basic requirements are outlined below:

Security: a transmission system is subject to random events (lightning, short-

circuits, accidents, etc.), which may cause the loss of transmission lines or cables. In
case of such contingencies the remaining system must be able to operate safely and
it should not be led to major disturbances (i.e. brown-outs or even complete black-
outs). This requirement refers both to the security of supply and the security of the
equipment.

Smooth operation: the electric power characteristics (voltage, frequency, power

quality, etc.) should be kept within predefined limits, i.e. within a range of
acceptable values.

Reliability: the system should be able to provide the customers with electricity
continuously even if some devices are out of operation due to outages or scheduled

Encyclopedia Of Life Support Systems (EOLSS)

EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.
C. Contaxis

maintenance. Any interruptions cause inconvenience to the customers and curtailed

revenues for the producers. Furthermore, restoration of service is always costly.

Minimum environmental impact.

Transmission services should be provided at minimum cost.

4. Statement of the Optimization Problem

The optimization of transmission system expansion is a quite complicated problem as it

involves a variety of parameters (technical, economic, social, environmental, etc.) that
should be taken into consideration for each specific transmission system. Since the
conditions among systems vary, the concepts and methodologies applied also vary,
depending mainly on the organization of the ESI sector. In general, the aim of the
transmission expansion optimization is to determine the most economical expansion

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policy of an electricity transmission system over a finite planning period.

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In monopolistic regimes, since the transmission system influences (sometimes
dramatically) the operation and the economics of the rest ESI subsystems (mainly the
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generation but the distribution as well), the transmission planning optimization is
closely related to generation expansion planning. It is quite often that optimization of
transmission expansion is performed jointly with the generation expansion. Although
conditions may vary among systems, for a monopolistic regime the optimization
problem can be stated in general as follows:
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Given for a planning horizon of N years:

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the existing transmission system configuration,

the projected loads over the planning period (N years),
the available right-of-ways for new transmission corridors and sites for new
substations,
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the estimated configuration (synthesis) of the generation system (new generators and
generators retirements),
the cost of both the new transmission elements and their upgrades (i.e. per km cost
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of OHLs and cables, transformers, autotransformer and compensation devices etc.),

the cost of generation for existing and foreseen generators,
the estimated cost of unserved energy,

Find:

The transmission system expansion plan (i.e. when new transmission facilities are
needed, where should they be located and what should they be) that optimizes the
planning criterion i.e. the objective function of the optimization problem solved. The
objective function to be optimized may vary as outlined in Section 4.3.

In deregulated electricity markets, the transmission system optimization is performed

independently of the expansion planning of the rest ESI subsystems. Since the behavior
of the market participants is in general unknown, transmission planning is performed

Encyclopedia Of Life Support Systems (EOLSS)

EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.
C. Contaxis

under high uncertainties (concerning the new generation sites and future generators,
power exchanges, etc.). These uncertainties are usually treated through alternative
scenarios for the new generators. Although the planning criteria may vary among
TSOs, the problem of the transmission system expansion optimization can be stated in
general as follows:
Given for a planning horizon of N years:

the existing transmission system configuration,

the projected loads over the planning period (N years),
the available right-of-ways for new transmission corridors and sites for new
substations,
the cost of both the new transmission elements and their upgrades (i.e. per km cost
of OHLs and cables, transformers, autotransformer and compensation devices etc.),

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Find:

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The transmission system expansion plan (i.e. the new transmission projects and
corresponding time of commissioning) that optimizes the planning criterion, i.e. the
objective function of the optimization problem solved as outlined in Section 4.3.
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The optimization of the objective function is, in all cases, subject to a set of constraints
that may vary significantly upon the ESI organization, social and economic conditions,
etc. From the technical point of view, some basic security constraints should be taken
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into consideration (representing roughly the operational requirements), i.e. to guarantee

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the smooth and secure system operation. Technical requirements may vary among TSOs
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though.
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In more developed and mature electricity markets, transmission is treated as a service.

In such markets different concepts are applied aiming to alleviate any system constraints
since operational requirements are treated as ancillary services.
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Bibliography

Bennon R. J., Juves J. A. and Meliopoulos A. P. (1982). Use of Sensitivity Analysis in Automated
Transmission Planning. IEEE Transactions on Power Apparatus and Systems, Vol. PAS-101, No. 1, p.
53, Jan. 1982. [The planning criterion is the total cost of transmission investments and transmission losses
over the planning period. Sensitivity analysis is performed to filter the alternative expansion scenarios.
Security constraints are checked with respect to the N-1 criterion using the AC load flow equations.]
Berry P. E. and Dunnett R. M. (1989). Contingency Constrained Economic Dispatch Algorithm for
Transmission Planning. IEEE Proceedings, Vol. 136, Pt.C, No.4, p. 238, July 1989. [This methodology

Encyclopedia Of Life Support Systems (EOLSS)

EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.
C. Contaxis

minimizes the total cost of transmission system operation over the planning period. The problem is solved
sequentially in three phases.]
Bertoldi O., Salvaderi L. and Scalcino S. (1988). Monte Carlo Approach in Planning Studies An
Application to IEEE RTS. IEEE Transactions on Power Systems, Vol. PWRS-3, No.3, p. 1146, Feb.
1988. [The expansion planning of both generation and transmission systems are solved simultaneously.
The planning criterion is the sum of investment costs (for both generation and transmission) and the cost
of unserved energy. Monte-Carlo techniques in conjunction with the DC load flow equations are used.]
Bhavaraju M. P. and Billinton R. (1971). Transmission Planning Using a Reliability criterion Part II:
Transmission Planning. IEEE Transactions on Power Apparatus and Systems, Vol. PAS-90, No. 1, p. 70.,
Jan-Feb. 1971. [The generation expansion plan is considered to be known. The planning criterion adopted
includes only the total investment cost. Reliability indices are utilized. Security constraints are evaluated
using AC load flow under extreme system loading conditions.]
Dusonchet Y. P. and El-Abiad A. (1973). Transmission Planning Using Discrete Dynamic Optimizing.
IEEE Transactions on Power Apparatus and Systems, Vol. PAS-92, No. 4, p. 1358., Jul.-Aug. 1973. [The
planning criterion adopted is the minimization of the total investment cost of new projects. DC load flow
is used to check security constraints. System is divided into neighborhoods; for each neighborhood

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the optimal plan is determined using dynamic programming.]

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Gilles M. L. (1986). Optimum HVAC - Transmission Expansion Planning. IEEE Transactions on Power

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Systems, Vol. PWRS-1, No. 1, p. 48, Feb. 1986. [It solves the transmission expansion problem and finds
simultaneously the optimal location of reactive power compensating devices. The planning criterion is the
total cost of transmission investments and transmission losses over the planning period. Integer linear
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programming is used. Network constraints are checked using AC load flow.]
Horne P. R., Garver L.L. and Miscally A. E. (1981). Transmission Plans Impacted by Generation Siting
A New Study Method. IEEE Transactions on Power Apparatus and Systems, Vol. PAS-100, No. 5, p.
2563., May 1981. [This paper presents a methodology to determine the optimal locations to install new
generation in order to minimize transmission losses. The planning criterion adopted is the total investment
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cost. Optimization procedure uses linear programming.]

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Kim K. J., Park Y. M. and Lee K. Y. (1988). Optimal Long Term Transmission Expansion Planning
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Based on Maximum Principle. IEEE Transactions on Power Systems, Vol. PWRS-3, No.4, p. 1494, Nov.
1988. [The planning criterion is the total cost of transmission investments and transmission losses over
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the planning period. Linear programming is used to minimize a Hamiltonian function which represents
the objective function. System reliability is taken into account using probabilistic techniques. DC load
flow is utilized to check security constraints.]
Lattore-Bayona G. and Perez-Arriaga I. J. (1994). Chopin, A Heuristic Model for Long Term
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Transmission Expansion Planning. IEEE Transactions on Power Systems, Vol. PWRS-9, No.4, p. 1886,
Nov. 1994. [The planning criterion is the total investment cost of generation and transmission expansion
plus the cost of the unserved energy. The problem is decoupled into subproblems solved sequentially. DC
load flow is used to verify transmission constraints.]
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Levi V. A. and Calovic M. S. (1991). A New Decomposition Based Method for Optimal Expansion
Planning of Large Transmission Networks. IEEE Transactions on Power Systems, Vol. PWRS-6, No.3, p.
937, Aug. 1991. [The problem is decoupled into two subproblems: minimization of total investment cost
and minimization of operational cost. Both DC and AC load flow equations are utilized. The subproblems
are solved sequentially. For the minimization of investment, linear programming is used (simplex) while
for the minimization of operational cost a Monte-Carlo Simulation is used.]
Meliopoulos A. P. (1976). A General Approach to the Planning of a Transmission Network. PhD Thesis,
Georgia Institute of Technology. [This work addresses the general problem of optimal expansion
planning of an electricity transmission network. The problem is formulated as a discrete time
deterministic optimization subject to a general form of constraints. A non-linear branch and bound
method is used to determine the optimal expansion policy.]
Meliopoulos A. P., Webb R. P., Bennon R. J. and Juves J. A. (1982). Optimal Long - Range Transmission
Planning with a AC Load Flow. IEEE Transactions on Power Apparatus and Systems, Vol. PAS-101, No.
10, p. 4156, Oct. 1982. [The planning criterion is the total cost of transmission investments and

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EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.
C. Contaxis

transmission losses over the planning period. Security constraints are checked with respect to the N-1
criterion using the AC load flow equations.]
Modicelli A., Santos A., Pereira M. V. F., Cunha S. H., Parker B. J. and Praca J. C. G. (1982). Interactive
Transmission Network Planning Using a Least Effort Criterion. IEEE Transactions on Power Apparatus
and Systems, Vol. PAS-101, No. 10, p. 3919, Oct. 1982. [A heuristic optimization methodology that
limits significantly the computation time is proposed. Each expansion scenario is validated upon the ratio
(investment)/(reduction of operational cost). N-1 security criterion is considered using DC load flow.]
Pereira M. V. F., Pinto L. M. V. G., Cunha S. H. and Oliveira G. C. (1985). A Decomposition Approach
to Automated Generation-Transmission Expansion Planning. IEEE Transactions on Power Apparatus
and Systems, Vol. PAS-104, No. 11, p. 3074, Nov. 1985. [The planning criterion is the total cost of
transmission investments and transmission losses over the planning period. The problem is decoupled into
two optimization subproblems i.e. optimization of investments and optimization of transmission losses;
these problems are solved separately. DC load flow is applied. Optimization procedure utilizes linear
programming.]
Romero R. and Modicelli A. (1994). A Hierarchical Decomposition Approach for Transmission Network
Expansion Planning. IEEE Transactions on Power Systems, Vol. PWRS-9, No. 1, p. 373, Feb. 1994. [The

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methodology used decouples the problem as in Pereira et al. (1985). The planning criterion is the total
cost of transmission investments and transmission losses over the planning period. Optimization is

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performed in three phases using linear and integer linear programming. DC load flow is used to check
security.]
Santos A., Franca P. M., and Said A. (1989). An Optimization Model for Long - Range Transmission
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Expansion Planning. IEEE Transactions on Power Systems, Vol. PWRS-4, No. 1, p. 94, Feb. 1989. [The
planning criterion is the minimization of the total investment cost of transmission. DC load flow is used
to check security. Optimization is based on full enumeration of expansion scenarios; the optimum is
determined through mixed integer programming.]
Sawey R. M. and Zinn C. D. (1977). A Mathematical Model for Long Range Expansion of Generation
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and Transmission in Electric Utility Systems. IEEE Transactions on Power Apparatus and Systems, Vol.
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PAS-96, No. 2, p. 657., Mar.-Apr. 1977. [This paper presents a method for the simultaneous optimization
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of the expansion of both the generation and transmission Systems. The planning criterion considered is
the total investment cost of both generation and transmission. The constraints considered are the
production limits of each generator. The DC load flow equations are used to verify security.]
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Seifu A., Salon S. and List G. (1989). Optimization of Transmission Line Planning Including Security
Constraints. IEEE Transactions on Power Systems, Vol. PWRS-4, No. 4, p. 1507., Oct. 1989. [The
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using DC load flow. Both linear programming and heuristic optimization algorithms are utilized.]
Serna C., Duran J. and Camargo A. (1978). A Model for Expansion Planning of Transmission Systems -
A Practical Application Example. IEEE Transactions on Power Apparatus and Systems, Vol. PAS-97,
No. 2, p. 610., Mar.-Apr. 1978. [The planning criterion is the total cost of transmission investments and
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transmission losses over the planning period. An equivalent transmission network is used. Static security
criteria are considered.]
Wenyuan L. and Billinton R. (1993). A Minimum Cost Assessment Method for Composite Generation
and Transmission System Expansion Planning. IEEE Transactions on Power Systems, Vol. PWRS-8, No.
2, p. 628., May 1993. [This paper deals with the cross-optimization of both transmission and generation.
The planning criterion applied is the sum of the generation investment cost and the cost of unserved
energy. Probabilistic techniques are used for the generation simulation. Concerning system constraints,
only the thermal limits are taken into account; the latter are checked using DC Load flow. Optimization
procedure uses linear programming.]
Youssef H. K. and Hackam R. (1989). New Transmission Planning Model. IEEE Transactions on Power
Systems, Vol. PWRS-4, No.1, p. 9, Feb. 1989. [An integer programming approach is used. The AC load
flow equations are used to check power flows through the transmission lines and the voltage angles at
buses.]

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EXERGY, ENERGY SYSTEM ANALYSIS AND OPTIMIZATION Vol. II - Electrical Network Optimization - J. Kabouris, G.
C. Contaxis

Biographical Sketches

John Kabouris is serving at the Hellenic Transmission System Operator (DESMIE S.A.).
John Kabouris received the Diploma in Electrical and Computer Engineering from the National
University of Athens (NTUA) in 1985. After his military service (1986-1988), he undertook graduate
studies in Electrical Engineering at the NTUA, leading to the Ph.D. degree (1992).
He worked for the Public Power Corporation (PPC) from 1991 until 2001. His main activities were
related with transmission expansion planning and integration of renewable energy sources into electricity
grids. In 2001 he joined the Hellenic Transmission System Operator (DESMIE S.A.). He is currently the
head of the transmission system planning studies department of DESMIE S.A. From 1999 he teaches
electrical power systems in the Technological Education Institute of Piraeus.
His research activity is related to the electric power systems analysis, transmission expansion planning,
renewable energy sources, production simulation and load forecasting.
He has published more than sixty papers in journals and international conferences.

George C. Contaxis is Professor of Power System Planning and Operation at the Department of

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Electrical and Computer Engineering of the National Technical University of Athens. He holds a

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Mechanical-Electrical Engineering degree from NTUA (1971), a MSEE degree (1973) and a Ph.D degree

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(1977) from the Electrical Engineering Department of Georgia Institute of Technology. He is senior
member of IEEE.
Prof. Contaxis has worked, as Teaching/Research Assistant and as Research Associate, for 5 years at the
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Department of Electrical Engineering of Georgia Institute of Technology (Atlanta, USA, 1972-July
1977). During this period he participated in projects funded by the National Science Foundation and the
Bonneville Power Administration. These projects were related to Security Assessment of Power Systems.
From August 1977 until May 1979 he has worked as Analyst at the Planning Department of Southern
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Power Company. During this period he participated in the development of computer software systems
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related to power system expansion, production costing and reliability.

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From January 1985 until August 1985 and during the summer months of 1986 he has worked as Visiting
Professor at the Department of Electrical Engineering of Georgia Institute of Technology. During this
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period he participated in projects funded by Electric Power Research Institute (EPRI).

From April 1980 he is working at the National Technical University of Athens. He is teaching courses
related to power system planning, and optimum operation of power systems. He has participated in
research projects funded by the General Secretariat for Research and Technology, the Public Power
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Corporation of Greece, the Center for Renewable Energy Sources (CRES), the International Atomic
Energy Agency, the European Commission among others. He was project coordinator in 20 research
projects. He is author of 3 books and 80 publications in international magazines or conference
proceedings.
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Prof. Contaxis has served as Secretary/Treasurer (1987-1991), as Vice-Chairman (1992-1996) and as

Chairman (1997-2001) of the Greece Section of IEEE (Institute of Electrical and Electronic Engineers).
Since 2001 he was appointed by the Executive Committee of IEEE Region 8 as Chapter Coordinator for
the PE and PEL Chapters of the region. He has been a member of several technical committees and
working groups of the Technical Chamber of Greece and member of working groups of IEEE and
CIGRE. He was member of the educational and professional activities committee of the Technical
Chamber of Greece in the area of Electrical Engineering. He has been a member of organizing
committees of workshops, seminars and conferences. From September 1990 to August 1994 he was
Director of the Electric Power Division of the Department of Electrical and Computer Engineering. From
September 1994 to August 1998 he was Vice-Chairman of the Department of Electrical and Computer
Engineering. From September 2000 till his sudden and premature death on 1 November 2004 he has
served as the Chairman of the Department of Electrical and Computer Engineering.

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