Estimation of Least Loss Power Contracts in a Deregulated Environment

Abstract

An economic power contract agreement can be entered into by transacting with the cheapest generator. However, from the generation-load location and transmission systems point of view, this may not always be the desired contract, as selecting only the cheapest generator may sometimes lead to transmission bottlenecks. This paper presents the most desired way to select a generator and its Mega-Watt (MW) generation schedule while forming contracts, which results in minimised losses. The approach is based on a concept called the Relative Electrical Distance (RED), which uses the information of the relative distances between the generator and load buses in its analysis. With this information, the value of Desired Generation Schedule (DGS) can be obtained. The generators are scheduled as per DGS and real power flows are traced and each generator’s load and loss sharing proportions are computed. The power contracts formed based on DGS will ensure better system security, better voltage profiles and also result in minimised transmission losses. With the allocation information, transmission basic and transmission supplementary charges are estimated. Illustrative case studies are carried out on a sample 6 bus and IEEE 39-bus systems.