Review of usage-based transmission cost allocation methods under open access

Pan, Jiuping; Teklu, Y.; Rahman, Sadek; Jun, K.

doi:10.1109/59.898093

Cited by 138 publications

(27 citation statements)

References 23 publications

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“…Pricing of transmission services plays a crucial rule in determining whether providing transmission services is economically beneficial to both the wheeling utility and customers. Some methods have been reported in the literature to allocate transmission fixed costs [9,10,13,14] and can be classified as embedded cost, incremental cost and composite embedded/ incremental cost methods. The cost to deliver electric energy varies as a function of time, system status and location within a power system.…”

Section: Generalmentioning

confidence: 99%

Reliability Modelling and Assessment of Power System Operation in the Competitive Electric Energy Market

Hammons¹

2011

Electricity Infrastructures in the Global Marketplace

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This Chapter describes the main concepts and features of appropriate computational methodologies that have been developed for assessing the overall reliability and operational performance of electric power systems operating under the framework of the competitive electric energy market. These methodologies are based on the Monte -Carlo sequential simulation approach and are used for conducting the appropriate assessment studies on the composite generation and transmission power systems. A special attention is given to the impact of renewable energy sources while appropriate case studies are presented and examined thoroughly in order to describe more effectively the basic features of the developed methodologies. IntroductionIn recent years, electric power systems are adopting new technologies in their structure in order to achieve better performance and efficiency in the electricity production, transmission and distribution [1]. One of the most important aspects of the competitive electric energy market is the operation of independent power producers that can be connected at any system voltage level. This fact together with additional financial incentives being developed in many countries has increased considerably the number of power generating units using renewable energy sources [2].Additionally, the role of transmission networks receives a great attention under the framework of this new environment being applied. Their role is to enable the competition by allowing an open access of all participants while keeping the system reliability and operational performance within appropriate standards [1,2].An increased need for simulating the operation of power systems has emerged in order to take into consideration all the special operating features and procedures that are being incorporated as a result of this new environment. For this purpose, appropriate computational methods are being developed to be used for examining alternative operational schemes of power systems and investigating the impact of certain features (such as the penetration level of renewable energy sources) to their overall reliability and operational performance. These methods are mainly based on the Monte -Carlo sequential simulation approach and it was proved that they are very useful for comparing thoroughly different planning and operational schemes of power systems in order to deduce the optimal one. Monte-Carlo Sequential Simulation ApproachThe Monte -Carlo sequential simulation approach is a stochastic simulation procedure and can be used for calculating the operational and reliability indices of a power system by simulating its actual behavior [3][4][5][6]. The problem is treated as a series of real experiments conducted in simulated time steps of one hour. A series of system scenarios is obtained by hourly random drawings on the status of each system component and the determination of the hourly load demand. The operational and reliability indices are calculated for each hour with the process repeated for the remaining hours in the year ...

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Section: Generalmentioning

confidence: 99%

Reliability Modelling and Assessment of Power System Operation in the Competitive Electric Energy Market

Hammons¹

2011

Electricity Infrastructures in the Global Marketplace

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“…Transfer capability is significant and its design need Total transfer capability (reliable electric power transfer over interconnected network), Available Transfer Capability (commercially available power transfer over the network), Transmission Reliability Margin (standard margin in transfer capability for critical cases), and Credible Contingency [4]. There is dissimilarity between transfer capability and transmission capability on the basis of 'N-1' criteria, Stability Criteria, Non-uniform loading of parallel lines, Loop flows, Voltage profile, Load generation disposition, Intra-state network configuration, and Law of diminishing returns.…”

Section: B Transfer Capability Networkmentioning

confidence: 99%

Congestion management in Indian Power Transmission System

Khan¹,

Ahmad²,

Imran³

2017

IJET

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Abstract-Congestion, signify a crisis where limit of transmission capacity overflows than transmission network capabilities, resulting in a violation of network security limits, being thermal, voltage stability limits, or levelled crucial contingency condition. Power Distribution system comprises huge quantity of physical utilities and interconnected network make it vulnerable to congestion at any non-specific location. This paper presents the various methods to reduce the congestion in Indian power sector. Further, on the basis of limitation which has been indulge with the present scenario of power market some suggestion has been provided which may lead a convention grid to smart grid system.

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“…The MW-mile [12] method is widely used in transmission networks, in which considers the changes in MW transmission flow and transmission line length in miles. Several other methods were developed based on MW-mile method, such as the unused capacity [13], the zero counter-flow [14], the dominant flow [15], and the MVA-mile [16]. Based on the power flow, the equivalent bilateral exchange method for cost allocation is proposed in [17].…”

Section: Literature Review and Specific Contributionsmentioning

confidence: 99%

“…However, the increasing penetration of DER at distribution level forces the need to adapt traditional cost allocation methods used in transmission system to the distribution level. In general, the cost allocation methods for transmission systems may be classified into three distinct categories: nodal marginal methods [3][4][5][6][7]; rolled-in methods [8][9][10][11]; embeddedmethods [12][13][14][15][16][17][18][19][20][21][22][23][24]. The cost allocation based on nodal marginal pricing for transmission systems is presented in [3][4][5], in which are considered the long-term and short-term marginal costs related to energy, reliability, investments and demand side.…”

Section: Literature Review and Specific Contributionsmentioning

confidence: 99%

“…To determine the amount of energy, it is usual to consider typical daily travel profile of each V2G as well as efficiency of charge and discharge energy in the grid. The energy stored on the battery of each V2G requires minimum (16) and maximum (17) limits. Charge (18) and discharge (19) rates present itself maximum limit.…”

Section: First Step -Energy Resources Scheduling and Locational Margimentioning

confidence: 99%

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Cost allocation model for distribution networks considering high penetration of distributed energy resources

Soares

Pereira

Morais

et al. 2015

Electric Power Systems Research

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a b s t r a c tThe high penetration of distributed energy resources (DER) in distribution networks and the competitive environment of electricity markets impose the use of new approaches in several domains. The network cost allocation, traditionally used in transmission networks, should be adapted and used in the distribution networks considering the specifications of the connected resources. The main goal is to develop a fairer methodology trying to distribute the distribution network use costs to all players which are using the network in each period. In this paper, a model considering different type of costs (fixed, losses, and congestion costs) is proposed comprising the use of a large set of DER, namely distributed generation (DG), demand response (DR) of direct load control type, energy storage systems (ESS), and electric vehicles with capability of discharging energy to the network, which is known as vehicle-to-grid (V2G). The proposed model includes three distinct phases of operation. The first phase of the model consists in an economic dispatch based on an AC optimal power flow (AC-OPF); in the second phase Kirschen's and Bialek's tracing algorithms are used and compared to evaluate the impact of each resource in the network. Finally, the MW-mile method is used in the third phase of the proposed model. A distribution network of 33 buses with large penetration of DER is used to illustrate the application of the proposed model.

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Review of usage-based transmission cost allocation methods under open access

Cited by 138 publications

References 23 publications

Reliability Modelling and Assessment of Power System Operation in the Competitive Electric Energy Market

Reliability Modelling and Assessment of Power System Operation in the Competitive Electric Energy Market

Congestion management in Indian Power Transmission System

Cost allocation model for distribution networks considering high penetration of distributed energy resources

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