A new transmission charging methodology for Australian National Electricity Market

Abstract

The Australian National Electricity Market (NEM) continues to move from a predominantly government owned and managed market to a more competitive, commercial one. Hence, transmission pricing plays an important role in NEM transmission network business. Currently, the NEM has been using the Cost Reflective Network Pricing (CRNP) and Modified Cost Reflective Network Pricing (MCNRP) method for transmission service charges. The drawbacks of both methods are (1) the load is burden with high transmission use of system (TUoS) charges as this charges is only paid by load (2) inaccurate transmission pricing method as the contribution of counter flows and local load case are totally being neglected. Hence, in this paper, a novel transmission pricing method which is called Distribution Factors Enhanced Transmission Pricing (DFETP) method is introduced in order to increase the utilization efficiency of the network as well as to promote the green technology in a market environment.

RETRACTED: New Australian NEM transmission use of system charging methodologies for integrating renewable generation to existing grid

“…The Transmission Network Service Providers (TNSPs) that use CRNP method such as Transend Networks, TransGrid and Vencorp while ElectraNet uses MCRNP method for transmission charging [12]. In addition, the AEMO has introduced the additional TUoS charges which incorporated with the CRNP or MCRNP method for charging the demands due to the integration of renewable generator in the existing grid.…”

“…This section describes the concept and formulation of the DFETP method [12]: modification on existing Generalized Generation Distribution Factors (GGDFs) and Generalized Load Distribution Factors (GLDFs) by replacing Generalized Shift Distribution Factors (GSDFs) with Justified Distribution Factors (JDF) in order to estimate the contributions to the network flows from individual users, and charging the transmission user by using the MW-mile (negative-flow sharing approach) plus tracing-based postage-stamp method.…”

“…Both methods are based on the combination of the traditional DFETP method introduced by Ref. [12] and the AEMO additional prescribed transmission charges.…”

Integrating the Transmission Loss Component with the Distribution Factors Enhanced Transmission Pricing Method for Efficient Transmission Use of System Charges

“…Hence, the MW-mile method (negativeflow sharing) was introduced [28]. In this method, the negative ,^ _ _nr#(i)\orff(i), (1) where value of Jk(u) is shared between the transmission owner and users using profit sharing factor r [30]. This factor is determined according to the willingness of the transmission owner to share profit with the transmission users [32].…”