Electricity transmission network optimization model of supply and demand – the case in Taiwan electricity transmission system

Abstract

The electricity system can be divided into power generation, transmission and distribution subsystems from the structure point of view. Electricity business is positioned as a public business and regulated by pricing and quantities due to the high publicly utilization. The power transmission system is responsible for power transmission from power generation plants to the areas of power utilization. Since there is the characteristic that electricity needs to produce and sell with immediate and instant balance, it is required to construct the complete power transmission network in charge of the power dispatching in order to provide stable electricity. The price of purchases and sales is closely related with the necessity of power supply and demand. The purpose of this paper is to introduce the optimization model of power supply and demand in the independent power transmission network for the maximization of consumer and producer's surplus in the liberalization of electricity business.We apply this model to discussing the relationships of electricity quantity and price of purchases and sales. In addition, the sensitive analysis is introduced as well. We conclude that the maximal profit of power transmission network will be decreased when quantity of power utilization, cost of power generation and maintenance cost of transmission network are increasing. Instead, the maximal profit of power transmission network will be increased when power transmission rate is increasing.