Fixed Transmission Cost Allocation Using Power Flow Tracing Methods

In the open access restructured power system market, it is necessary to develop an appropriate pricing scheme that can provide the useful economic information to market participants, such as generation, transmission companies and customers. Though many methods have already been proposed, but accurately estimating and allocating the transmission cost in the transmission pricing scheme is still a challenging task. This work addresses the problem of allocating the cost of the transmission network to generators and demands. In this work four methods using DC Power flow and AC power flow have been attempted. They are MW-Mile Method, MVA-Mile Method, GGDF method and Bialek Tracing method. MVA-Mile method and Bialek Tracing method applies AC power flow and considers apparent power flows. The purpose of the present work is to allocate the cost pertaining to the transmission lines of the network to all the generators and demands. A load flow solution is run and, the proposed method determines how line flows depend on nodal currents. This result is then used to allocate network costs to generators and demands. The technique presented in this work is related to the allocation of the cost to GENCO‘s TRANSCO‘s and DISCO‘s. A technique for tracing the flow of electricity of lines among generators with GGDF and Bialek upstream looking algorithm is proposed. With these methods correct economic signals are generated for all players. All these methods are tested on IEEE 14 bus systems.