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A Comprehensive Review of Embedded Transmission Pricing Methods Based on Power Flow Tracing Techniques

DOI: 10.1155/2013/501587

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Abstract:

Restructuring of electricity supply industry introduced the concept of deregulation. After deregulation transmission cost allocation is a vital issue. In the available literature, various authors have presented different methods for allocation of transmission cost. This paper presents the review of a variety of methods and algorithm based on the principle of power-flow tracing. For a fair and equitable transmission charge allocation it is necessary to know the quantum of power flowing by each generator and load in line flows. Power flow tracing techniques are mainly based on the concepts of proportional sharing principle, graph theory, circuit theory (Z-bus tracing), optimization approach, relative electrical distance concept, Equilateral bilateral exchange (EBE), and game theory. This paper presents a comprehensive review of all the available literature on the above. 1. Introduction Restructuring of electricity supply industry (ESI) has taken place around the world. The main aim behind this restructuring is to introduce competition to increase efficiency and quality of services in the electricity supply industry. Initially, power sector operated as vertically integrated utility in which all the functions are governed and controlled by state own organization. After the restructuring deregulation and open access is introduced in the ESI. Following deregulation the regulated structure of the ESI is converted into a deregulated structure in which all the three major functions are separated by three companies, namely, Generation Company Ltd. (GENCOS), Transmission Company Ltd. (TRANSCO), and Distribution Company Ltd. (DISCOMS). Competition is introduced in the entire system. Various independent power producers IPPs come in the field of generation. They generate power and sell to the Central Transmission Utility (CTU) or TRANSCO. Competition is introduced in the distribution sector. But it is difficult to introduce competition in the transmission sector due to its monopolistic nature. In transmission sector, it is not possible to build a separate transmission line for every generation facility. Hence transmission cost allocation is very complicated task in the deregulated environment. Several methodologies and their variants are presented to solve this problem. The main aim of any transmission pricing methodology is to introduce a fair competition in the electricity sector and provide efficient economic signals. Transmission pricing methods are the overall processes of translating transmission costs into overall transmission charges. Figure 1 presents the

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