The new non-discriminatory strategy for cost allocation in restructured system

Abstract

Congestion relief management (CRM) is introduced as one of ancillary services in market structure. The CRM maintains the system operation within the security limits and defines the cost receiving and paying for congestion relief. It is important contents that how congestion relief cost is allocated to every participant in energy market. In this paper, a new strategy for congestion cost allocation in a pool-based market is proposed to improve the accuracy and equitability of the existing methods, also it can eliminates merchandising surplus and give correct signal to participants for each congested line separately. ISO determines how much congestion is related to every participant by using an index. This index termed as congestion allocation index (CAI) which is determined for every bus. This method is capable of allocating cost to every participant based on each participant's share in congested line. The numerical study is based on IEEE 30-bus system.