Transmission Cost Allocation in Restructured Power Systems Based on Nodal Pricing Approach by Controlling the Marginal Prices
This paper presents a method to allocate the transmission network costs to users based on nodal pricing approach by regulating the nodal prices from the marginal point to the new point. Transmission nodal pricing based on marginal prices is not able to produce enough revenue to recover the total tra...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Iran University of Science and Technology
2010-06-01
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| Series: | Iranian Journal of Electrical and Electronic Engineering |
| Subjects: | |
| Online Access: | http://ijeee.iust.ac.ir/browse.php?a_code=A-10-262-2&slc_lang=en&sid=1 |
| Summary: | This paper presents a method to allocate the transmission network costs to users
based on nodal pricing approach by regulating the nodal prices from the marginal point to
the new point. Transmission nodal pricing based on marginal prices is not able to produce
enough revenue to recover the total transmission network costs. However, according to the
previous studies in this context, this method recovers only a portion of transmission costs.
To solve this problem, in this paper a method is presented in which by considering the
direction and amount of injected power in each node the marginal price is regulated to the
new price, in such a way as the nodal pricing can recover the total transmission network
costs. Also the proposed method is able to control the cost splitting between loads and
generators in accordance with the pre-specified ratio. The proposed method is implemented
on both IEEE 24-bus and 118-bus test systems and the obtained results are reported. |
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| ISSN: | 1735-2827 2383-3890 |