Abstract
We consider the problem of fair allocation of the cost of a transmission system among load and generation entities using the marginal participation approach. We show that a cost-causal approach involving capacity-based line cost rate and a min-max fair economic slack bus selection for price-taking entities leads to a rigorously fair and more accurate implementation of marginal participation method. In the existing methods the counter-flows are masked, which is a compromise with fairness and linearity. However, if the counter-flows are incentivized then it can lead to pay-offs to some entities. The proposed approach solves the problem of pay-offs without masking the counter-flows. This is achieved by separation of the total transmission services cost into usage, reliability and residual capacity components. The allocation of the first two components is based on the min-max fairness policy, and the residual capacity costs are allocated on a pro-rata basis. Simulation results on multiple IEEE test systems, Indian utility power systems and extensive comparative evaluations for the contemporary methods demonstrate the claims made.
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Notes
the ability to schedule the least cost resource.
Abbreviations
- \({\mathcal {C}}\) :
-
The set of all the N-1 contingencies
- \({\mathcal {K}}\) :
-
Constant postage stamp rate to allocate RC
- \(C_{lm}\) :
-
Cost of line between bus l and m
- G :
-
Set of all generator buses
- L :
-
Set of all load buses
- NetCombCost :
-
Network combined cost for ‘extent of use’ and reliability capacity using DC framework
- NetEOUCost :
-
Network ‘extent of use’ cost using DC framework
- NetRelCapCost :
-
Network cost reliability capacity using DC framework
- \(P_{lm}\) :
-
Power flow in line lm using DC framework
- \(P_{{REL}_{lm}}\) :
-
Reliability capacity for line lm using DC framework
- \(PoC_1\) :
-
PoC tariff for DCPF-based proposed method
- \(RC_{REL}\) :
-
Residual capacity cost with reliability modelling in DC framework
- \(S_{lm}\) :
-
Capacity of the line lm in MW
- \(TSU^{0}\) :
-
Total network cost to be recovered
- UB :
-
Upper bound
- DCPF:
-
DC power flow
- PoC:
-
Point of connection tariff in ₹/MW
- RC:
-
Residual cost of the system
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Mehta, R.P., Rao, M.S.S. & Soman, S.A. A cost-causal marginal participation method using min-max fairness for transmission services cost allocation. Sādhanā 45, 183 (2020). https://doi.org/10.1007/s12046-020-01418-x
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DOI: https://doi.org/10.1007/s12046-020-01418-x