Power Wheeling Pricing Considering Congestion in Power Network: A Review

Abstract

Limited capacity of the power system infrastructure has a limiting effect on the quantity of electrical power that can be transmitted thereby resulting in the system been congested which also affects the quality of electrical energy supplied. Congestion is an undesired effect in power system with serious economic, reliability and security effect on power system infrastructure, which are yet to be adequately quantify in term of cost. Congestion occurrence and management on the power system network has been studied extensively, causes of congestion and various management techniques have been proposed which are at great financial consequences. While setting transmission wheeling prices, congestions are not adequately considered, nor are the management methods accurately financially compensated. Some wheeling pricing techniques however recognises the short coming and takes into consideration the financial cost of congestion and it’s management methods when setting their transmission wheeling costs. This paper is a review of wheeling methods that takes into consideration the cost of congestion and the management techniques when setting wheeling prices and makes a recommendation using financial and economic implication of the occurrence of congestion and the management techniques adopted in reducing the impact when setting wheeling prices, in order to encourage investment into the transmissions system infrastructures.