Review of methods to calculate congestion cost allocation in deregulated electricity market

Jiawei Zhao, Jianfeng Lu, Kwok Lun Lo

Research output: Contribution to journalArticle

Abstract

With maturing deregulated environment for electricity market, cost of transmission congestion becomes a major issue for power system operation. Uniform Marginal Price and Locational Mar-ginal Price (LMP) are the two practical pricing schemes on energy pricing and congestion cost allo-cation, which are based on different mechanisms. In this paper, these two pricing schemes are in-troduced 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.

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Costs
Electricity market
Pricing
Congestion
Cost allocation
Power markets
Positive ions
Power system
Bus
Energy

Keywords

  • deregulated electricity market
  • transmission congestion management
  • congestion cost allocation
  • uniform marginal price
  • locational marginal price
  • power system operation
  • energy pricing
  • modified IEEE-14-bus system

Cite this

@article{e3d0b94a2e8248c88c19aaa8db666ec2,
title = "Review of methods to calculate congestion cost allocation in deregulated electricity market",
abstract = "With maturing deregulated environment for electricity market, cost of transmission congestion becomes a major issue for power system operation. Uniform Marginal Price and Locational Mar-ginal Price (LMP) are the two practical pricing schemes on energy pricing and congestion cost allo-cation, which are based on different mechanisms. In this paper, these two pricing schemes are in-troduced 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.",
keywords = "deregulated electricity market, transmission congestion management, congestion cost allocation, uniform marginal price, locational marginal price, power system operation, energy pricing, modified IEEE-14-bus system",
author = "Jiawei Zhao and Jianfeng Lu and Lo, {Kwok Lun}",
year = "2016",
month = "10",
day = "20",
doi = "10.4236/wjet.2016.43D003",
language = "English",
volume = "4",
pages = "16--26",
journal = "World Journal of Engineering and Technology",
issn = "2331-4222",
number = "3D",

}

Review of methods to calculate congestion cost allocation in deregulated electricity market. / Zhao, Jiawei; Lu, Jianfeng; Lo, Kwok Lun.

In: World Journal of Engineering and Technology, Vol. 4, No. 3D, 3D, 20.10.2016, p. 16-26.

Research output: Contribution to journalArticle

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AU - Lo, Kwok Lun

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N2 - With maturing deregulated environment for electricity market, cost of transmission congestion becomes a major issue for power system operation. Uniform Marginal Price and Locational Mar-ginal Price (LMP) are the two practical pricing schemes on energy pricing and congestion cost allo-cation, which are based on different mechanisms. In this paper, these two pricing schemes are in-troduced 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.

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