Article: Incentive charge calculation based on counter flow effect Journal: International Journal of Power and Energy Conversion (IJPEC) 2014 Vol.5 No.1 pp.88 - 102 Abstract: This paper studies the transmission pricing using optimal power flow when both pool and bilateral system coexist. The paper introduces the evaluation of transmission pricing for all market participants by considering counter flow effects. This approach uses the properties of the mega watt-mile method but takes into account the economic benefits of both trading parties by analysing their shares in negative power flow or counter flow. An analytical approach is used for calculating the incentive charge for individual participant when the multiple wheeling transactions are considered simultaneously. The proposed method allocates the incentive charge over the participants by analysing their shares in negative power flow or counter flow. One case study based on an IEEE 14 bus system is used to illustrate the proposed approach. The results show that the each participant provide with some incentive charges, which encourages the individual participants contribution over the traditional MW-mile approach in the context of revenue reconciliation of transmission services, regardless of transmission arrangement and locations. The main advantage of the developed method lies in its capability to consider multiple wheeling transactions simultaneously. Inderscience Publishers - linking academia, business and industry through research

Title: Incentive charge calculation based on counter flow effect

Authors: Kirti Pal; Manjaree Pandit; Laxmi Srivastava

Addresses: Department of Electrical Engineering, IIMT Group of Colleges, Meerut, U.P., 250004, India ' Department of Electrical Engineering, Madhav Institute of Technology and Science, Gwalior, M.P., 474005, India ' Department of Electrical Engineering, Madhav Institute of Technology and Science, Gwalior, M.P., 474005, India

Abstract: This paper studies the transmission pricing using optimal power flow when both pool and bilateral system coexist. The paper introduces the evaluation of transmission pricing for all market participants by considering counter flow effects. This approach uses the properties of the mega watt-mile method but takes into account the economic benefits of both trading parties by analysing their shares in negative power flow or counter flow. An analytical approach is used for calculating the incentive charge for individual participant when the multiple wheeling transactions are considered simultaneously. The proposed method allocates the incentive charge over the participants by analysing their shares in negative power flow or counter flow. One case study based on an IEEE 14 bus system is used to illustrate the proposed approach. The results show that the each participant provide with some incentive charges, which encourages the individual participants contribution over the traditional MW-mile approach in the context of revenue reconciliation of transmission services, regardless of transmission arrangement and locations. The main advantage of the developed method lies in its capability to consider multiple wheeling transactions simultaneously.

Keywords: transmission pricing; absolute pricing; incentive charge calculation; counter flow effect; megawatt mile; open access; wheeling charges; optimal power flow; negative power flow; IEEE 14 bus; multiple wheeling transactions.

DOI: 10.1504/IJPEC.2014.059985

International Journal of Power and Energy Conversion, 2014 Vol.5 No.1, pp.88 - 102

Accepted: 06 Aug 2012
Published online: 13 May 2014 *

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Title: Incentive charge calculation based on counter flow effect

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