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Integration of Business Climate Resilience on the Transmission Expansion Planning Over the Low-Carbon Energy Transition

The energy transition is changing power systems towards more environmentally friendly structures by increasing renewable sources and reducing greenhouse gas emissions. Besides their natural short-term uncertainties, climate changes input long-term variations on renewable sources’ behavior. Thus, the development of proper tools for Transmission Expansion Planning (TEP) is imperative to mitigate the consequences of unexpected climate events on the operation of power systems. Hence, this paper presents a Five-Level Stochastic Programming (FLSP) TEP formulation that aims at finding protective umbrellas measured by Business Climate Resilience (BCR) while employing stochastic optimization techniques to enhance investment and operative decisions over a planning horizon containing uncertainties. The proposed methodology is tested using the NREL-118 system, and the results confirm that adopting an aversive behavior to climate risk can reduce operation costs by 69.85% over the years.