  A two-stage stochastic optimization model for the design of the closed-loop
cable layout of an Offshore Wind Farm (OWF) is presented. The model consists on
a Mixed Integer Linear Program (MILP) with scenario numeration incorporation to
account for both wind power and cable failure stochasticity. The objective
function supports simultaneous optimization of: (i) Initial investment (network
topology and cable sizing), (ii) Total electrical power losses costs, and (iii)
Reliability costs due to energy curtailment from cables failures. The
mathematical optimization program is embedded in an iterative framework called
PCI (Progressive Contingency Incorporation), in order to simplify the full
problem while still including its global optimum. The applicability of the
method is demonstrated by tackling a real-world instance. Results show the
functionality of the tool in quantifying the economic profitability when
applying stochastic optimization compared to a deterministic approach, given
certain values of failure parameters.
