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The impact of transmission loss component on transmission cost recovery in pool electricity markets

Hassan, Mohammad Yusri and Almaktar, M. A. and Abdullah, Md. Pauzi and Hussin, Faridah and Majid, M. S. and Abd. Rahman, Hasimah (2010) The impact of transmission loss component on transmission cost recovery in pool electricity markets. International Review Of Electrical Engineering-Iree, 5 (4). pp. 1736-1746. ISSN 1827- 6660

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Abstract

This paper proposes a DC based pricing scheme for transmission cost recovery for pool electricity markets. The scheme uses Generalized Generation Distribution factors (GGDFs) for allocating the utilization of the grid by different transmission users. The same factors are utilized for allocating transmission losses among the market’s participants. The proposed pricing scheme is tested on 5-bus and IEEE 14-bus systems and compared with Ireland’s pricing scheme that has adopted the DC lossless Transmission Use of System Charge (TUoSC). The proposed DC approach is validated with AC Z-bus Distribution Factors (ZBDF). Results show that the proposed scheme provides sensible signals for transmission system users relieving the transmission network. The merit of the proposed scheme over the Irish one lies on rewarding users for reducing the transmission system losses.

Item Type:Article
Uncontrolled Keywords:generalized generation distribution factors, locational and non-locational charges, loss allocation, Z-bus distribution factors
Subjects:T Technology > TK Electrical engineering. Electronics Nuclear engineering
Divisions:Electrical Engineering
ID Code:27070
Deposited By: Yanti Mohd Shah
Deposited On:24 Jul 2012 02:18
Last Modified:22 May 2019 01:17

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