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Long term investment optimization methodology for multi-zonal transmission expansion

This paper introduces a stepwise investment optimization methodology for transmission system expansion planning. The objective of the developed methodology is to determine transmission expansion plans to realize a desired interconnection capacity between multiple zones minimizing investment and operational costs. The methodology uses MILP optimization and a modified A* shortest path algorithm sequentially in order to determine the optimal investment time point, transmission topology, technology and routing. Spatial constraints and their effects on the installation cost are taken into account in the technology and route optimization. A possible application of the methodology is demonstrated on a stepwise investment plan for the North Sea region.