Optimal tracing based transmission pricing and transmission congestion pricing in deregulated power market

Abstract

In the deregulated electricity markets cost allocation of transmission services is a major issue for transmission open access All the users of the transmission facilities generators and loads should pay for the network usage of the system following an efficient transmission pricing mechanism that is able to recover transmission costs and allocate them to transmission network users in a proper way The transmission pricing philosophies prevailing all over the world can be classified into three paradigms such as embedded cost incremental cost and composite cost Generally the choice of adopting a particular paradigm of pricing is dominated by the degree of deregulation or liberalization in the power sector of that country Again for fully deregulated power industry the choice can vary depending on the market models A power flow tracing based approach is developed to find the cost in the transmission lines The power flow in the transmission lines are obtained by tracing of power flow from generator to transmission line or from load to transmission lines This research work proposes a new method to find the congestion cost in the deregulated transmission network using power flow tracing Real power generation is maximized by adding an Independent Power Producer IPP at load buses The maximization process is done using Particle Swarm Optimization PSO technique The overloading of the lines is carried over by maximizing the real power generation The congestion cost is calculated from the optimized power flow in the transmission lines The usage based power flow is applied to find out the congestion cost in transmission lines newline