FOREX Press I. J. of Electrical & Electronics Research
Support Open Access
  • Home/
  • IJEER-100444

Research Article |

Optimal Spot Pricing Evaluation in Restructured Electrical Power System

Author(s): Pramod Gadge1 and Prakash Burade2

Published In : International Journal of Electrical and Electronics Research (IJEER)        Volume 10, Issue 4

Publisher : FOREX Publication

Published : 20 November 2022

e-ISSN : 2347-470X

Page(s) : 1021-1026

DOI: https://doi.org/10.37391/IJEER.100444

Abstract

Electricity markets in both developed and developing countries have been considerably reorganized over the previous two decades. The unbundling of generation and transmission results in restructured electricity market which enhances the competition among the market traders in the regime of open access. Therefore, the transmission pricing methods should be skilled in translating transmission costs into tariffs to allow participation, which leads to profitable effectiveness, allows the grid owner to recover prices, and makes market participants aware of the system's supply defense and consistency maintained. This research intends to (1) examine the drivers behind power transmission pricing, (2) Create AC-DC OPF-based Nodal Pricing methodology, and (3) work out prices for India’s real transmission network to enable market participants to compete and make the best decisions. Finally, the study indicated that the planned methodology is more appropriate for rising nations to achieve the goals of building extensive energy markets.

Keywords: Electricity market, Optimal power flow, Spot pricing, Embedded cost, Transmission pricing.




Pramod Gadge*, Department of Electrical & Electronics Engineering, Sandip University, Nashik (MS), India; Email: gadgepm@gmail.com

Prakash Burade, Department of Electrical & Electronics Engineering, Sandip University, Nashik (MS), India; Email: prakash.burade@gmail.com

    [1] F.F Wu, F.L. Zheng, F.S. Wen, “Transmission investment and expansion planning in a restructured electricity market”, Energy 31, 2006, pp. 954–966.[Cross Ref]
    [2] F. C. Schweppe, M.C. Caramanis, and R.E. Bohn, “The cost of Wheeling and optimal Wheeling Rates” IEEE Trans. on PWRS Vol.1, No. 1, Feb 1986.[Cross Ref]
    [3] Hyde M. Merrill, Bruce W. Erickson, “Wheeling Rates Based on Marginal cost Theory”, IEEE Trans. on Power System, Vol.4, No. 4, Oct 1989.[Cross Ref]
    [4] D. Shirmohammmadi, C. Rajgopalan, E.R. Alward and C. L. Thomas “Cost of Transmission Transaction: Introduction”, IEEE Trans. On Power System, Vol.6 No.4, Nov 1991, pp. 1546-1560.[Cross Ref]
    [5] Ross Kovacs, Allen Leverett, “ A Load Flow Based Method for calculating Embedded, Incremental and Marginal cost of Transmission capacity”, IEEE Trans. on Power System, Vol.9, No. 1, Feb 1994, pp. 272-278.[Cross Ref]
    [6] Happ, “Cost of Wheeling Methodologies”, IEEE Trans. on Power System, Vol.9, No. 1, Feb 1994.[Cross Ref]
    [7] J.W. Marangon Lima, “Allocation of transmission Fixed Charges: An Overview” IEEE Trans. on Power Systems, Vol.11, No. 3, August 1996, pp. 1409-1415.[Cross Ref]
    [8] Young-Moon Park; Jong-Bae Park; Jung-Uk Lim; Jong-Ryul Won “An analytical approach for transaction costs allocation in transmission system”, IEEE Trans. on Power Systems, Volume: 13 Issue 4, Nov. 1998, pp. 1407 –1412.[Cross Ref]
    [9] Yog Raj Sood, N. Padhy, H.O. Gupta, “ Allocating Embedded Cost of transmission to Simultaneous Bilateral Transactions- An Applications to South African System” Journal of the International Associations on Electricity Generation Transmission and Distribution (Afro AsianRegion), Vol 8-10, No 1, March-June 2002, pp. 1-11.[Cross Ref]
    [10] M. Oloomi-Buygi, and M. Reza Salehizadeh, “Transmission Pricing based on Voltage Angle Decomposition”, Proceedings of World Academy of Science, Engineering and Technology Volume 17, December 2006, pp. 151-156.[Cross Ref]
    [11] M. Rivier and I. J. Perez-Ariaga, "Computation and decomposition of nodal price for transmission pricing," in 11th PSCC conference, 1991.[Cross Ref]
    [12] D. Finney, H. A. Othman, and W. L. Rutz, "Evaluating transmission congestion constraints in system planning," IEEE Trans. on Power Systems, vol. 12, no. 3, Aug. 1997.[Cross Ref]
    [13] F.C. Schweppe, M.C. Caramanis, R.D. Tabors, and R.E. Bohn, Nodal Pricing of Electricity, Norwell, MA: Kluwer, 1988.[Cross Ref]
    [14] C. N. Lu, S. S. Chen, C. M. Ong, “The Incorporation of HVDC Equations in Optimal Power Flow Methods using Sequential Quadratic Programming Techniques”, IEEE Trans. on Power Systems, Vol. 3, No.3, August 1988, pp 1005-1011.[Cross Ref]
    [15] Kai Xie, Yong-Hua Song, John Stonham, Erkeng Yu, and Guangyi Liu, “Decomposition Model and Interior Point Methods for Optimal Nodal Pricing of Electricity in Deregulation Environments”, IEEE Trans. On Power Systems, vol. I, No. 1, February 2000, pp. 39-50.[Cross Ref]
    [16] Luonan Chen, Hideki Suzuki, TsunehisaWachi, and Yukihiro Shimura, “Components of Nodal Prices for Electric Power Systems”, IEEE Trans. on Power Systems, Vol. 17, No. 1, 2002, pp. 41-49.[Cross Ref]
    [17] Tong Wu, Ziad Alaywan, and Alex D. Papalexopoulos, “Locational Marginal Price Calculations Using the Distributed-Slack Power-Flow Formulation”, IEEE Trans. on Power Systems, Vol. 20, No. 2, May 2005, pp. 1188-1190.[Cross Ref]
    [18] S.B.Warkad, V.G.Umale “Locational Marginal Pricing based Financial Transmission Rights”, IEEE Explore2017[Cross Ref]

Pramod Gadge and Prakash Burade (2022), Optimal Spot Pricing Evaluation in Restructured Electrical Power System. IJEER 10(4), 1021-1026. DOI: 10.37391/IJEER.100444.