{"word_count": 167, "character_count": 1287}
Planning electricity transmission to accommodate renewables : Using  two-stage programming to evaluate flexibility and the cost of  disregarding uncertainty  / Adriaan Hendrik van der Weijde and Benjamin  F. Hobbs. Electricity Policy Research Group, Cambridge University, 2011,  50 p. (Working Paper ;  EPRG1102)http://www.eprg.group.cam.ac.uk/wp-content/uploads/2011/01/Binder11.pdfWe develop a stochastic two-stage  optimisation model that captures the multistage nature of electricity  transmission planning under uncertainty and apply it to a stylised  representation of the Great Britain (GB) network. In our model, a  proactive transmission planner makes investment decisions in two time  periods, each time followed by a market response. This model allows us  to identify robust first-stage investments and estimate the value of  information in transmission planning, the costs of ignoring uncertainty,  and the value of flexibility. Our results show that ignoring risk has  quantifiable economic consequences, and that considering uncertainty  explicitly can yield decisions that have lower expected costs than  traditional deterministic planning methods. Furthermore, the best plan  under a risk-neutral criterion can differ from the best under  risk-aversion. (Abstract © EPRG)