Power flow tracing based transmission congestion pricing in deregulated power markets

Abstract

The objective of this paper is to propose a simple transmission congestion pricing scheme based on tracing principle by considering generator fixed cost, cost for incurring loss and transmission congestion cost. Restructuring has brought about considerable changes by the virtue of which electricity is now a commodity and has converted into deregulated type. Such a competitive market has paved way for innumerable participants. This concept of restructuring has led to overloading of transmission lines. In this paper, power flow tracing has been employed by using suitable optimization algorithm, where the real power generation has been maximized. Congestion in the transmission line has been produced in a new fashion by maximizing the real power demand. The power flow under normal operating condition and congestion is determined and hence the difference in power flow is estimated. Based on the estimated power flow difference, the transmission line congestion cost is computed. Pool model and bilateral model has been considered in simulation study to introduce the concept of deregulation. The proposed method is tested and validated on Modified IEEE 30 bus test system and Indian utility 69 bus test system.