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.