Transmission Cost Allocation Using Improved MVA-km Method by Optimal Power Flow

Alireza Sedaghati, Ali Mokhtarizade

Abstract


In the recent years, with restructuring in power systems and arising of electricity markets result in considerable changes in power system operation. An important challenge in power systems is transmission pricing. Transmission pricing has important effects on competition in the electricity markets, return of the transmission system investment and attracting new investments. In this paper, transmission pricing is done using improved MVA-km method. This method is based on the Zbus and MVA-km methods. Three different approaches are defined in order to analysis the effect of the reverse power flows on transmission cost. For compatibility with the electricity market environments, AC optimal power flow (ACOPF) is used for power dispatch of generation units. The proposed methods are simulated on a 12 bus test systems and the results of three MVA-km based methods are reported and compared. Moreover, the results of transmission cost calculation based on optimal power flow and power flow are compared.


Keywords


Electricity markets; Transmission system; Transmission pricing; Improved MVA-km method; AC optimal power flow (ACOPF).

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