Capacity Value of Interconnectors for Resource Adequacy Assessment in Multi-Region Systems

Interconnectors can enhance resource adequacy in multiple regions of an interconnected system, but determining the value of their contribution, and how it is shared between the regions, is non trivial. This paper introduces the concept of minimum equivalent firm capacity (MEFC) to determine the minimum additional generation which would be required to provide the same reliability benefit as an interconnector, and into which regions of the system this should be installed. MEFC is calculated using a linear program as a heuristic to identify the optimal ratio in which the MEFC should be installed. The reliability of the system is evaluated using a sequential Monte Carlo simulation, with an efficient convex optimization used to dispatch interconnectors and energy storage. The optimality of the heuristic approach is investigated, and the method is demonstrated on a three-region system of Great Britain, Ireland, and France with the addition of the proposed Celtic Interconnector.