Power System Transmission Pricing-A Review

Abstract

Restructuring in the power supply industries has given rise to a competitive electricity market. The allocation of the transmission cost is a vital issue in this power market. The transmission pricing should be economical, transparent, efficient and ensure the reliable operation of the electricity market. This paper puts forward the review of different transmission pricing techniques and methods. The transmission cost allocation by nodal pricing and power flow tracing techniques along with the congestion management, optimization techniques and the transmission loss allocation constitute the body of this paper.