A leader-followers model of power transmission capacity expansion in a market driven environment

  title={A leader-followers model of power transmission capacity expansion in a market driven environment},
  author={Paolo Pisciella and Marida Bertocchi and Maria Teresa Vespucci},
  journal={Computational Management Science},
We introduce a model for analyzing the upgrade of the national transmission grid that explicitly accounts for responses given by the power producers in terms of generation unit expansion. The problem is modeled as a bilevel program with a mixed integer structure in both upper and lower level. The upper level is defined by the transmission company problem which has to decide on how to upgrade the network. The lower level models the reactions of both power producers, who take a decision on new… 
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