A new method for charging transmission services

Chunyang Zhao, Stuart Galloway, K.L. Lo

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

1 Citation (Scopus)

Abstract

In the deregulated power system, transmission services are treated as a commodity sold to market participants. So a charging method must be developed to support this concept. At present charging for transmission services is based on use of capacity or nodal pricing. There is a view that nodal pricing is better because it is more reflective of power market operation. However neither of these methods is entirely superior over the other one. In this paper a new charging method is introduced to resolve the transmission payment problem. The new method is a combination of the usage and nodal pricing methods. The proposed method makes use of advantages in both methods to achieve transmission charged equally. The combined method is tested on IEEE 118 network and turns out that the result is a fair charging method for market participants. In addition its application is not influenced by political borders, which means it can be used in a single system or in an area included many zones.
Original languageEnglish
Title of host publicationProceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009
Place of PublicationNew York
PublisherIEEE
Pages473-477
Number of pages5
ISBN (Print)9781424468232
Publication statusPublished - 2009
EventThe 44th International Universities' Power Engineering Conference - Glasgow, United Kingdom
Duration: 1 Sep 20094 Sep 2009

Conference

ConferenceThe 44th International Universities' Power Engineering Conference
CountryUnited Kingdom
CityGlasgow
Period1/09/094/09/09

Fingerprint

Costs
Power markets

Keywords

  • deregulation
  • power flow tracing
  • nodal price
  • transmission pricing
  • electrical market

Cite this

Zhao, C., Galloway, S., & Lo, K. L. (2009). A new method for charging transmission services. In Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009 (pp. 473-477). New York: IEEE.
Zhao, Chunyang ; Galloway, Stuart ; Lo, K.L. / A new method for charging transmission services. Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009. New York : IEEE, 2009. pp. 473-477
@inproceedings{7fc37029ede44f7882ba02af980e5cca,
title = "A new method for charging transmission services",
abstract = "In the deregulated power system, transmission services are treated as a commodity sold to market participants. So a charging method must be developed to support this concept. At present charging for transmission services is based on use of capacity or nodal pricing. There is a view that nodal pricing is better because it is more reflective of power market operation. However neither of these methods is entirely superior over the other one. In this paper a new charging method is introduced to resolve the transmission payment problem. The new method is a combination of the usage and nodal pricing methods. The proposed method makes use of advantages in both methods to achieve transmission charged equally. The combined method is tested on IEEE 118 network and turns out that the result is a fair charging method for market participants. In addition its application is not influenced by political borders, which means it can be used in a single system or in an area included many zones.",
keywords = "deregulation, power flow tracing , nodal price, transmission pricing, electrical market",
author = "Chunyang Zhao and Stuart Galloway and K.L. Lo",
year = "2009",
language = "English",
isbn = "9781424468232",
pages = "473--477",
booktitle = "Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009",
publisher = "IEEE",

}

Zhao, C, Galloway, S & Lo, KL 2009, A new method for charging transmission services. in Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009. IEEE, New York, pp. 473-477, The 44th International Universities' Power Engineering Conference, Glasgow, United Kingdom, 1/09/09.

A new method for charging transmission services. / Zhao, Chunyang; Galloway, Stuart; Lo, K.L.

Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009. New York : IEEE, 2009. p. 473-477.

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

TY - GEN

T1 - A new method for charging transmission services

AU - Zhao, Chunyang

AU - Galloway, Stuart

AU - Lo, K.L.

PY - 2009

Y1 - 2009

N2 - In the deregulated power system, transmission services are treated as a commodity sold to market participants. So a charging method must be developed to support this concept. At present charging for transmission services is based on use of capacity or nodal pricing. There is a view that nodal pricing is better because it is more reflective of power market operation. However neither of these methods is entirely superior over the other one. In this paper a new charging method is introduced to resolve the transmission payment problem. The new method is a combination of the usage and nodal pricing methods. The proposed method makes use of advantages in both methods to achieve transmission charged equally. The combined method is tested on IEEE 118 network and turns out that the result is a fair charging method for market participants. In addition its application is not influenced by political borders, which means it can be used in a single system or in an area included many zones.

AB - In the deregulated power system, transmission services are treated as a commodity sold to market participants. So a charging method must be developed to support this concept. At present charging for transmission services is based on use of capacity or nodal pricing. There is a view that nodal pricing is better because it is more reflective of power market operation. However neither of these methods is entirely superior over the other one. In this paper a new charging method is introduced to resolve the transmission payment problem. The new method is a combination of the usage and nodal pricing methods. The proposed method makes use of advantages in both methods to achieve transmission charged equally. The combined method is tested on IEEE 118 network and turns out that the result is a fair charging method for market participants. In addition its application is not influenced by political borders, which means it can be used in a single system or in an area included many zones.

KW - deregulation

KW - power flow tracing

KW - nodal price

KW - transmission pricing

KW - electrical market

M3 - Conference contribution book

SN - 9781424468232

SP - 473

EP - 477

BT - Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009

PB - IEEE

CY - New York

ER -

Zhao C, Galloway S, Lo KL. A new method for charging transmission services. In Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009. New York: IEEE. 2009. p. 473-477