Abstract
Electric power transmission and transmission pricing are the key issues in the deregulated electric power industry. Factors like fast power demand growth, competition, service outage, and scarce natural resources make transmission systems operate close to their thermal limits. However, new transmission systems cannot be built in due to economic, environmental, and political reasons. For better utilization of existing power system capacities, the power electronic technology-based power system equipment called flexible alternating current transmission system (FACTS) devices like thyristor-controlled series compensators (TCSCs) can be effectively used for operating the transmission grid economically, rapidly, dynamically, and efficiently with increased flexibility and efficiency under different loading conditions. TCSCs, being costly devices, may adversely affect some deregulated power market participants. This paper proposes a unit commitment algorithm for the minimization of power losses and determination of optimal location for TCSC placement. The impact of the TCSC in conjunction with the application of the proposed algorithm on the generation cost and wheeling cost is analyzed using a power flow-based line-by-line rolled-in transmission pricing scheme. The comparison between the annual generation costs and annual wheeling costs with and without the TCSC is carried out under different load conditions in the IEEE 30-bus system. Results and simulations validate the economy of the suitable TCSC's optimal presence over its absence.
Highlights
In the 1980s, there was a worldwide push of monopolistic utilities like railroads, airlines, telephone services, gas industries, and banks from a vertically integrated environment to open-market or deregulated or restructured systems
This paper proposes a modified power flow tracing methodology incorporating the computation of the contribution of each generating unit of the bus system towards the loads and line flows
Either a single entity or multiple entities could do wheeling. The latter case leads to the need for power flow tracing techniques, which, by notional decomposition of line flows and losses, provide information regarding the transmission network usage share by various generating units for either a specific load or a certain line flow to fix the wheeling cost in order to recover fixed transmission costs, decomposition of power flows on a line into its constituent generators and loads, loss energy delivered by generators, and line losses due to different loads [14]
Summary
In the 1980s, there was a worldwide push of monopolistic utilities like railroads, airlines, telephone services, gas industries, and banks from a vertically integrated environment to open-market or deregulated or restructured systems. The power flow-based line-by-line rolled-in transmission pricing scheme maintains no priority order in the case of multiple wheeling transactions, provides correct economic signals irrespective of entities’ distance involved in the wheeling process, emulates the actual system operating conditions, and encourages the economic usage of the transmission network capacity by giving a higher cost signal to transactions with several delivery points. This methodology recovers transmission network embedded capital costs partially, but fails to signal the future investment cost
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