A transmission congestion cost allocation method in bilateral trading electricity market

Jiawei Zhao, Jianfeng Lu, Kwok Lun Lo

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Bilateral trading in electricity is one of the typical deregulated power market trading methods and it has its own way to calculate and allocate congestion cost. In this paper, using as a practical bilateral structure example, the British electricity market is stated in details especially the operation mechanism and the methodology of imbalance settlement. A corresponding congestion cost allocation method for bilateral market is introduced briefly by equations and is simulated in a modified IEEE-14 bus model to investigate its pros and cons.
Original languageEnglish
Pages (from-to)240-249
Number of pages10
JournalEnergy and Power Engineering
Issue number4B
Publication statusPublished - 6 Apr 2017
Event9th Asia-Pacific Power and Energy Engineering Conference - Chengdu, China
Duration: 15 Apr 201717 Apr 2017



  • bilateral electricity market
  • congestion management
  • congestion cost allocation
  • imbalance settlement

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