Objective transmission cost allocation based on marginal usage of power network in spot market

Abstract Transmission cost allocation is important for a liberalized market with open access to transmission facilities. However, it remains controversial how to objectively allocate the transmission costs because there is no unique answer for the mapping between the power injections at buses and the power flows on branches. However, the marginal usage of the power network can be uniquely determined according to the market-clearing solution. In this paper, an objective transmission cost allocation method is proposed based on the marginal usage of the power network. The influence of the loss modeling on the proposed method is discussed. The “extent of use” of transmission facilities is determined based on the economic principles without subjective assumptions, which obeys the fairness requirement of spot markets. The proposed method is computationally efficient, in which only matrix manipulations are involved. Moreover, the proposed approach is compatible with the standards and procedures of the current spot market operation in the U.S., China, and many other countries and holds promise for industrial applications.

[1]  Hongbin Sun,et al.  Distributed solution to DC optimal power flow with congestion management , 2018 .

[2]  Janusz Bialek,et al.  Tracing the flow of electricity , 1996 .

[3]  Arunachalam Sundaram,et al.  Market Clearing and Settlement Using Participant Based Distributed Slack Optimal Power Flow Model for a Double Sided Electricity Auction Market –Part I , 2018 .

[4]  Jong-Bae Park,et al.  An analytical approach for transaction costs allocation in transmission system , 1998 .

[5]  Goran Strbac,et al.  Tracing active and reactive power between generators and loads using real and imaginary currents , 1999 .

[6]  Haiwang Zhong,et al.  A General Formulation of Linear Power Flow Models: Basic Theory and Error Analysis , 2019, IEEE Transactions on Power Systems.

[7]  Janusz Bialek,et al.  Topological generation and load distribution factors for supplement charge allocation in transmission open access , 1997 .

[8]  Liqun Shang,et al.  Maximum power point tracking of PV system under partial shading conditions through flower pollination algorithm , 2018 .

[9]  Osvaldo R. Saavedra,et al.  Allocation of transmission network cost using modified Z bus matrix , 2014 .

[10]  Y. Molina,et al.  Transmission Network Cost Allocation Based on Circuit Theory and the Aumann-Shapley Method , 2013, IEEE Transactions on Power Systems.

[11]  Jiuping Pan,et al.  Review of usage-based transmission cost allocation methods under open access , 2000 .

[12]  S. Arunachalam.  Calculation of Participation Based Loss Factors using the Concept of Market Center in a Deregulated Power System , 2017 .

[13]  Chongqing Kang,et al.  A Linearized OPF Model With Reactive Power and Voltage Magnitude: A Pathway to Improve the MW-Only DC OPF , 2018, IEEE Transactions on Power Systems.

[14]  M. S. G. Smitha,et al.  TRANSMISSION COST ALLOCATION USING CO-OPERATIVE GAME THEORY CONCEPTS , 2018 .

[15]  I. Pérez-Arriaga,et al.  Marginal pricing of transmission services: a comparative analysis of network cost allocation methods , 2000 .

[16]  Arunachalam Sundaram,et al.  Participant Based Distributed Slack Power Flow Model and Calculation of Participant Based Loss Factors Using the Concept of Market Center , 2017, 2017 9th IEEE-GCC Conference and Exhibition (GCCCE).

[17]  J. H. Malinowski,et al.  Evaluation of Transmission Network Capacity Use for Wheeling Transactions , 1989, IEEE Power Engineering Review.

[18]  B. Hobbs,et al.  Improved Transmission Representations in Oligopolistic Market Models: Quadratic Losses, Phase Shifters, and DC Lines , 2008, IEEE Transactions on Power Systems.

[19]  N. Hatziargyriou,et al.  A More Fair Power Flow Based Transmission Cost Allocation Scheme Considering Maximum Line Loading for N-1 Security , 2013, IEEE Transactions on Power Systems.

[20]  Chongqing Kang,et al.  LMP Revisited: A Linear Model for the Loss-Embedded LMP , 2017, IEEE Transactions on Power Systems.

[21]  Nikos D. Hatziargyriou,et al.  Computer-Assisted Interactive Learning for Teaching Transmission Pricing Methodologies , 2014, IEEE Transactions on Power Systems.

[22]  H. Rudnick,et al.  Marginal pricing and supplement cost allocation in transmission open access , 1995 .

[23]  Antonio J. Conejo,et al.  Network usage determination using a transformer analogy , 2014 .

[24]  P. Pentayya,et al.  Electricity transmission pricing: tracing based point-of-connection tariff for Indian power system , 2006, 2006 IEEE Power Engineering Society General Meeting.

[25]  Chongqing Kang,et al.  A Structural Transmission Cost Allocation Scheme Based on Capacity Usage Identification , 2016, IEEE Transactions on Power Systems.

[26]  R D Zimmerman,et al.  MATPOWER: Steady-State Operations, Planning, and Analysis Tools for Power Systems Research and Education , 2011, IEEE Transactions on Power Systems.

[27]  Sairaj V. Dhople,et al.  Power Divider , 2015, IEEE Transactions on Power Systems.

[28]  M. Ilić,et al.  Toward regional transmission provision and its pricing in New England , 1997 .

[29]  Osman Bülent Tör.  Separation of power systems into a unique set of zones based on transmission usage of network tariffs and transmission loss tariffs , 2015 .

[30]  Mohd Wazir Mustafa,et al.  Evaluation of real power and loss contributions for deregulated environment , 2012 .

[31]  Tongxin Zheng,et al.  Marginal loss modeling in LMP calculation , 2004, IEEE Transactions on Power Systems.