• OpenAccess
  • Review of Methods to Calculate Congestion Cost Allocation in Deregulated Electricity Market  [CET 2016]
  • DOI: 10.4236/wjet.2016.43D003   PP.16 - 26
  • Author(s)
  • Jiawei Zhao, Jianfeng Lu, Kwok Lun Lo
  • With maturing deregulated environment for electricity market, cost of transmission congestion becomes a major issue for power system operation. Uniform Marginal Price and Locational Marginal Price (LMP) are the two practical pricing schemes on energy pricing and congestion cost allocation, which are based on different mechanisms. In this paper, these two pricing schemes are introduced in detail respectively. Also, the modified IEEE-14-bus system is used as a test system to calculate the allocated congestion cost by using these two pricing schemes.
  • Deregulated Electricity Market, Transmission Congestion Management, Congestion Cost Allocation, Uniform Marginal Price and Locational Marginal Price
  • References
  • [1]
    Lo, K.L. and Yuen, Y.S. Deregulation of Electric Utilities. Power System Restructuring and Deregulation, Wiley, 50-74.
    Sun, J. (2014) Demand Side Approaches for Congestion Management in Electricity Market. Ph.D. Dissertation, Dept. EEE. Eng., Univ. Strath-clyde.
    Abdullah, M.P. (2008) Congestion Management and Security Cost Allocation in Electricity Market. Ph.D. Dissertation, Dept. EEE. Eng., Univ. Strathclyde.
    Christie, R.D., Wollenberg, B.F. and Wangensteen, I. (2000) Transmission Management in the Deregulated Environment. Proceedings of the IEEE, 88.
    Abdullah, M.P., Hassan, M.Y. and Hussin, F. (2008) Congestion Cost Allocation in a Pool- Based Electricity Market. IEEE 2nd International Power and Energy Conference, PECon 2008, 1033-1037.
    Simmonds, G. (2002) Regulation of the UK Electricity Industry. CRI Industry Brief, University of Bath, Desktop published by Jan Marchant 2002 Edition.
    Lo, K.L., Yuen, Y.S. and Snider, L.A. (2000) Congestion Man-agement in Deregulated Electricity Markets. International Conference on Electric Utility Deregulation and Restructuring and Power Tech-nologies, 47-52.
    Hussin, F., Hassan, M.Y. and Lo, K.L. (2006) Transmission Congestion Management Assessment in Deregulated Electricity Market. 2006 4th Student Conference on Research and Development, 250-255.
    Hamoud, G. and Bradley, I. (2004) Assessment of Transmission Congestion Cost and Locational Marginal Pricing in a Com-petitive Electricity Market. IEEE Transactions on Power Systems, 19, 769-775.
    Orfanogianni, T. and Gross, G. (2007) A General Formulation for LMP Evaluation. IEEE Transactions on Power Systems, 22, 1163-1173.
    Li, F.X. and Rui, B. (2008) DCOPF-Based LMP Simulation: Algorithm, Comparison with ACOPF, and Sensitivity. 2008 IEEE/PES Transmission and Distribution Conference and Exposition.
    Tong, J.Z. (2004) Overview of PJM Energy Market Design, Operation and Experience. Proceedings of the 2004 IEEE International Conference on Electric Utility De-regulation, Restructuring and Power Technologies, (DRPT 2004), 24–27.
    Ott, A.L. (2003) Experience with PJM Market Operation, System Design, and Implementation. IEEE Transactions on Power Systems, 18, 528-534.
    Li, H. and Tesfatsion, L. (2011) ISO Net Surplus Collection and Allocation in Wholesale Power Markets under LMP. IEEE Transactions on Power Systems, 26, 627–641.
    Logenthiran, T., Srinivasan, D. and Zong, S.T. (2012) Demand Side Management in Smart Grid Using Heuristic Optimization. IEEE Transactions on Smart Grid, 3, 1244-1252.
    Hausman, E. (2007) American Public Power Association, and Synapse Energy Economics (Firm). LMP Electricity Markets: Market Operations, Market Power, and Value for Consumers. American Power Association, Washington DC.

Engineering Information Institute is the member of/source content provider to