Congestion pricing in a deregulated market using A.C. Power Transfer Distribution Factors

Abstract

In our paper we will be reporting our investigations on congestion pricing in a deregulated electricity market using A.C. Power Transfer Distribution Factors (AC-PTDF). In transmission lines, congestion is the important operational issue that often occurs in deregulated system. Congestion in the transmission line restricts the simultaneous delivery of power for set of transaction between generator and load. Thus it is important to manage and remove congestion and to appropriately charge the transmission system users that cause congestion. Many different methods Topological Generation Distribution Factors (D.C.), Traceable flow method, Optimal re-dispatch and Zonal congestion management have been used to determine the congestion cost. In the paper we will first report on the results of our comprehensive literature review on the topic as well detailing the outline of the promising preliminary methodologies investigate. The main focus of the paper will be on the methods for transmission line congestion cost management and calculation during transmission transactions. In our studies we will use full AC load flow analysis (Newton Rapson) to determine the power system quantities. MW-mile method will be used to determine the congestion cost in the system. This approach will allow us improve the accuracy and allocate the values fairly to the transmission line users most responsible for the congestion. Furthermore we will be reporting on our preliminary findings and conclusion of our efforts in trying to derive a practical congestion pricing methodology that will be accurate and can be accepted by all parties as equitable and practical and conclude by detailing the future stages of our investigations.