A comparative study on transmission network cost allocation methodologies
13 Jun 2013-pp 145-152
TL;DR: Three existing techniques namely Zbus method, Zbusavg method and Relative Electrical Distance (RED) method for the network cost allocation is compared and the results obtained are quite encouraging and useful for the deregulated electricity market related issues.
Abstract: In the deregulated electricity market, it has become very important to determine the complete information about the participants who are utilizing the transmission network. Transmission line usage computation requires information of generator to load contributions and the path used by various generators to meet loads and losses. In the present restructured electricity market, it is necessary to develop appropriate pricing techniques that can provide the useful economic information to market participants. In this paper, the three existing techniques namely Zbus method, Zbusavg method and Relative Electrical Distance (RED) method for the network cost allocation is compared. It has been successfully applied on an IEEE 24 bus-Reliability Test System (RTS) and the results obtained are compared. The results obtained are quite encouraging and useful for the deregulated electricity market related issues. The simulation is carried out using MATLAB 7.8.0 (R 2009a).
Citations
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TL;DR: This study presents a lucid approach for loss allocation economically by ranking the loss supplying generators based on their PQC and gives both the real power loss/cost allocation to the generators and for individual transactions.
Abstract: Supplying transmission losses economically under bilateral contract is a challenge for power engineers. In this study, penalised quoted cost (PQC) based approach is proposed where generators will participate for supplying the transmission losses which may be incurred from their customers through their bilateral contracts in a deregulated electricity market. The loss supplying generators will quote the cost and the quantum of real power that can be supplied by them to independent system operator (ISO) in a day-ahead market. This study presents a lucid approach for loss allocation economically by ranking the loss supplying generators based on their PQC. Penalty factor for each loss supplying generator is calculated using the loss coefficients. ISO will meet the losses due to bilateral contracts in an economical way by selecting the generators with minimum PQC and the associated cost is allocated to the individual transactions based on loss contribution fraction. The proposed algorithm is tested using a sample four-bus system and IEEE 30 bus system using MATLAB R2014a. This method is based on the participation of generators and their given quotation in transmission loss allocation process. The study gives both the real power loss/cost allocation to the generators and for individual transactions.
13 citations
01 Nov 2016
TL;DR: In this paper, the authors proposed a fair allocation of transmission loss in deregulated electricity market, where the total cost for supply of loss is allocated to the generators and loads based on loss factors.
Abstract: Fair allocation of transmission loss is a challenging task for power engineers in deregulated electricity market. One of the key roles of Independent System Operator (ISO) is to provide the details of transmission loss in real time and to allocate the associated cost to the involved parties. For effective and reliable operation of power system, compensation of real and reactive power loss in real time is essential. For a bilateral contract, a generator and a load is involved in the transmission loss allocation process. This paper presents a simple, novel and a fair method to allocate real power loss due to bilateral contracts. The total cost for supply of loss is allocated to the generators and loads based on loss factors. Two loss factors are computed namely generator loss factor for generators and load loss factor for loads. Loss factors are computed from the AC load flow. The proposed method is tested on IEEE 30 bus system and a comparison is made with the other existing methods like proportional sharing, Z bus and modified Z bus . MATLAB R2014a is used for all simulations.
8 citations
Cites methods from "A comparative study on transmission..."
...In [4], a comparison of three loss allocation methods namely Zbus, modified Zbus and relative electric distance (RED) are presented and results are compared on an IEEE 24 bus system....
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01 Nov 2017
TL;DR: Optimum generation cost is determined using metaheuristic optimization techniques like firefly algorithm and particle swarm optimization and comparative analysis of optimum generation is also carried out using these techniques.
Abstract: Electricity deregulation has caused rapid changes in electricity market structure. Vertically integrated utility which performed all the functions including generation, transmission, distribution and retail services are now disaggregated into separate companies devoted to each function. The main goal of this deregulation is to enhance competition and provide new choices and economic benefits to the consumers. In a deregulated environment, determination of Market Clearing Price (MCP) is the main objective of a pool operator. Market Clearing Price is based on bids received from the generators as well as consumers. The Independent System Operator (ISO) finds out the Market Clearing Price based on these bids from generators and consumers. The calculation of market clearing price using conventional methods is not suitable for spot market as they are slow and less efficient. In this paper, optimum generation cost is determined using metaheuristic optimization techniques like firefly algorithm and particle swarm optimization and comparative analysis of optimum generation is also carried out using these techniques. Optimum location of DG is also determined in this work. Both fixed and variable demands are considered in this paper. IEEE standard 9 bus system is taken as the test system and the programming is carried out using MATLAB platform (R2014a).
6 citations
01 Nov 2017
TL;DR: A methodology to price the real power loss due to bilateral contracts considering reactive power drawn by the loads using an IEEE 30 bus system is presented and the results in comparison with other loss allocation methods are presented.
Abstract: In deregulated electricity market, economic allocation of transmission loss to the generators and the loads in a fair way is a tremendous challenge for power engineers. This paper presents a methodology to price the real power loss due to bilateral contracts considering reactive power drawn by the loads. The real power loss is divided into two components namely transaction loss component and reactive power loss component. Transaction loss component is due to the bilateral contracts and reactive power loss component is due to the reactive power demand of the loads. Based on transaction loss factor and reactive power loss factor the total cost for real power loss is allocated to both generators and loads. Transaction loss factor depends on quantum of real power generation and load and hence cost of transaction loss component is shared among the generators and the loads equally. Reactive power loss factor depends on quantum of reactive power demand of the loads and hence cost of reactive power loss component is allocated to the loads. The results of the proposed approach in comparison with other loss allocation methods are presented using an IEEE 30 bus system. The simulation is carried out using MATLAB R2014a.
4 citations
Cites background from "A comparative study on transmission..."
...A comparative study of different loss allocation methods is illustrated in [16-18]....
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01 Jun 2017
TL;DR: The result shows that mutual inductance has a significant impact on transmission loss and hence cannot be ignored.
Abstract: Addressing loss due to transmission and its cost allocation in deregulated electricity market is an essential issue. Independent System Operator (ISO) provides the real power loss from the generators and the associated cost is allocated to the concerned parties in a fair way. The generators and loads participate in the loss/cost allocation process. The highlight of the paper is that the effect of mutual inductance (MI) that exists on transmission line in transmission loss/cost allocation process for bilateral contracts is illustrated. To demonstrate the effect of mutual inductance, the results of two existing loss allocation methods like penalized quoted cost (PQC) based approach and proportional generation and proportional load (PGPL) based approach are discussed. Effect of mutual inductance is presented using an IEEE 14 bus system. The simulation results are carried out using MATLAB R2014a. The result shows that mutual inductance has a significant impact on transmission loss and hence cannot be ignored.
4 citations
Cites methods from "A comparative study on transmission..."
...A comparison of loss allocation methods based on graph theory, proportional sharing, Zbus, modified Zbus and relative electrical distance methods are presented in [16-17]....
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References
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TL;DR: In this article, an enhanced test system (RTS-96) is described for use in bulk power system reliability evaluation studies, which will permit comparative and benchmark studies to be performed on new and existing reliability evaluation techniques.
Abstract: This report describes an enhanced test system (RTS-96) for use in bulk power system reliability evaluation studies. The value of the test system is that it will permit comparative and benchmark studies to be performed on new and existing reliability evaluation techniques. The test system was developed by modifying and updating the original IEEE RTS (referred to as RTS-79 hereafter) to reflect changes in evaluation methodologies and to overcome perceived deficiencies.
3,040 citations
"A comparative study on transmission..." refers methods in this paper
...To build the EBEs, each demand is proportionally assigned a fraction of each generation, and conversely, each generation is proportionally assigned a fraction of each demand, in such a way as both Kirchhoff’s Laws are satisfied[12][13]....
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Book•
01 Jan 2004
TL;DR: In this article, the authors discuss the need for a Managed Spot Market for electrical energy markets and present a model of competition in such a market, which is based on the theory of the firm.
Abstract: Preface. 1. Introduction. 1. Why Competition? 2. Dramatis Personae. 3. Models of Competition. 4. Open Questions. 5. Further Reading. 6. Problems. 2. Basic Concepts from Economics. 1. Introduction. 2. Fundamentals of Markets. 3. Concepts from the Theory of the Firm. 4. Types of Markets. 5. Markets with Imperfect Competition. 6. Further Reading. 7. Problems. 3. Markets for Electrical Energy. 1. Introduction. 2. What is the Difference between a Megawatt--hour and a Barrel of Oil? 3. The Need for a Managed Spot Market. 4. Open Electrical Energy Markets. 5. The Managed Spot Market. 6. The Settlement Process. 7. Further Reading. 8. Problems. 4. Participating in Markets for Electrical Energy. 1. Introduction. 2. The Consumer's Perspective. 3. The Producer's Perspective. 4. Perspective of Plants with Very Low Marginal Costs. 5. The Hybrid Participant's Perspective. 6. Further Reading. 7. Problems. 5. System Security and Ancillary Services. 1. Introduction. 2. Describing the needs. 3. Obtaining Ancillary Services. 4. Buying Ancillary Services. 5. Selling Ancillary Services. 6. Further Reading. 7. Problems. 6. Transmission Networks and Electricity Markets. 1. Introduction. 2. Decentralized Trading over a Transmission Network. 3. Centralized Trading over a Transmission Network. 4. Further Reading. 5. Problems. 7. Investing in Generation. 1. Introduction. 2. Generation Capacity from an Investor's Perspective. 3. Generation Capacity from a Customer's Perspective. 4. Further Reading. 5. Problems. 8. Investing in Transmission. 1. Introduction. 2. The Nature of the Transmission Business. 3. Cost--based Transmission Expansion. 4. Value--based Transmission Expansion. 5. Further Reading. 6. Problems. Appendix: Answers to Selected Problems. Abbreviations and Acronyms. Index.
1,211 citations
"A comparative study on transmission..." refers background in this paper
...In the traditional pro rata method [3], [4] both generators and loads are charged a flat rate per megawatthour, disregarding their respective use of individual transmission lines....
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TL;DR: In this article, a technique for answering the question of which generators are supplying a particular load, how much use each generator is making of a transmission line and what is each generator's contribution to the system losses is described.
Abstract: Because of the introduction of competition in the electricity supply industry, it has become much more important to be able to determine which generators are supplying a particular load, how much use each generator is making of a transmission line and what is each generator's contribution to the system losses. This paper describes a technique for answering these questions which is not limited to incremental changes and which is applicable to both active and reactive power. Starting from a power flow solution, the technique first identifies the busses which are reached by power produced by each generator. Then it determines the sets of buses supplied by the same generators. Using proportionality assumption, it is then possible to calculate the contribution of each generator to the loads and flows. The applicability of the proposed technique is demonstrated using a 30-bus example.
641 citations
"A comparative study on transmission..." refers methods in this paper
...Some flow-based methods use the proportional sharing principle [6], [7], which implies that any active power flow leaving a bus is proportionally made up of the flows entering that bus, such that Kirchhoff’s Current Law is satisfied....
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28 Jan 2005
593 citations
TL;DR: In this article, the authors proposed a simple method of transmission supplement charge allocation based on topological analysis of power flows in the network. But the method uses the MW-MILE methodology but analyses the share, not the impact of, individual loads and generators in line flows.
Abstract: This paper introduces a simple novel method of transmission supplement charge allocation based on topological analysis of power flows in the network. The method uses the MW-MILE methodology but analyses the share, not the impact of, individual loads and generators in line flows. This results in positive contributions from all the users hence rescinding the problem of counterflows.
454 citations
"A comparative study on transmission..." refers methods in this paper
...Some flow-based methods use the proportional sharing principle [6], [7], which implies that any active power flow leaving a bus is proportionally made up of the flows entering that bus, such that Kirchhoff’s Current Law is satisfied....
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