The following sub-goals are defined, which will lead to the main objective:

1. Define the future generation of models for power system analysis and transmission expansion planning.
2. Develop new methods and models for better assessment of power capacity related problems, including improved wind power models and consumer flexibility.
3. Design flexible interfaces for easy data exchange between power market and network simulation models.
4. Build new competence in transmission system analysis through a PhD-education.

The main objective is to build the competence necessary to face future challenges in power system analysis and transmission expansion planning.

The most important contribution of this project will be knowledge and methods used in computer optimization and simulation models. The goal is to define the future generation of models for transmission planning purposes, in terms of model structure, data flow, and coupling between market optimization and network simulation parts.

The main challenges arise due to differences between details needed in market models and transmission models.

There is a need for knowledge building in the intersection between traditional market modelling and hydro-thermal scheduling on the one side and transmission system modelling on the other side. The need for this knowledge has increased because the market balance in the NordPool area has become tighter, the connection to continental Europe has become stronger and because of an increasing share of wind power that will increase the power flow variations in the system.

The main problem is not the lack of basic methodologies that can be used for this type of problems, but more related to which are the best methods for this specific problem, what simplifications are necessary and what are pros and cons of different approaches in order to develop practical tools. One of the main problems is that the NordPool market includes more than 1000 different hydro reservoirs and the inflows to these reservoirs are not known.

Some simplifications have to be done. The project will contribute to better utilisation of the Norwegian/Nordic electricity system in general and especially contribute to better decision support for the Nordic TSOs in making correct socio-economic investments and other decisions related to the operation and surveillance of the Nordic power system. This will contribute to lower prices for electricity and thus benefit all consumers of electricity.