IPP selection based on contingency analysis and optimal power flow

Recently the deregulation of the electric power industry has progressed worldwide. In Japan the electric power industry law was revised to achieve a reduced electricity price in 1995, and competition in the power generation market was started in Japan. Moreover, the retail wheeling to large customers was launched in March 2000. Under this situation, IPP selectors (electric power utilities) have to think about efficient connection to existing systems by which they have select IPPs considering not only the cost but also the future demand. Therefore, in order to achieve efficient connection of IPPs to the existing systems some selection guidelines are needed. What IPP selectors want to know is "where" and "how much" in the existing system they want to have IPPs. It is thought that knowing good connecting point(s) and the appropriate capacity of IPPs becomes one of the IPP selection guidelines. In this paper, we propose a method by which we can determine the connecting point(s) and the appropriate capacity of IPPs to plan the appropriate electric power system for the future. The proposed method in which IPP selectors can select from both sides of reliability and economy is verified using simulations.