Transmission cost allocation using the distribution factors method

Abstract

One of the key problems of energy transmission system in an independent environment refers to necessity to establish a cost for system services on nondiscriminatory bases. The prices must to be simple and transparent. A properly established cost provides economical signals for short-term and long-term recovery current expenses and for a fair cost allocation for participants. This paper presents allocation of transmission costs to consumers and to generator using the distribution factors method. A detailed comparison between regime with active losses and the regime without active losses are presented. A case study based on a 12-node system is provided.

Network usage with probabilistic distribution factors method

“…In this case the sharing of network usage among market participants becomes crucial. Some of the proposals for network usage are: pro-rata method [3], Bialek method [4], distribution factors method [5], system matrices method [6], [7], EBE method [8], [9] and Kirschen method [10]. The network usage allocated to generators and consumers may be computed in a probabilistic manner.…”

Contingency-constrained Congestion Management and Transmission Cost Allocation

“…The traditional version of this method was proposed by Ng in [20]. It was extended to AC power flow, being able to evaluate the real and reactive power flow [21]. Allocation method based on the equivalent bilateral exchanges (EBE) [22] does not depend on the slack bus selection.…”

Probabilistic network usage by means of equivalent bilateral exchanges. Case study for the Romanian Power System

“…Some proposal problem are mention: distribution factors method [3], system matrices method [4]- [5], EBE method [6]- [7], pro rata method [8], Bialek method [9] and Kirschen method [10]. Network usage can be addressed through a probabilistic approach, considering the two random variables.…”