A production-cost-simulation-based method for optimal planning of the grid interconnection between countries with rich hydro energy

Cross-border grid interconnection is a critical means to achieve wide-area share of hydro and other clean energy.Economic benefit assessment of cross-border grid interconnection projects should be carefully performed during early stage.In this paper,a method based on cost-benefit economic assessment for optimal planning of cross-border grid interconnection is proposed.An economic index for comprehensively assessing the cost of a transmission project and its resulting benefits of more usage of hydro energy is designed first.A chronological production cost simulation model considering hydro energy spillage due to transmission congestion and thermal operational limitation is then proposed to calculate the economic index.A case study is performed using the proposed method to determine the optimal capacity of a potential transmission link between Brazil and Argentina,which have rich and complementary hydro energy resources.