A probabilistic transmission pricing methodology considering transmission reliability margins

Abstract

This paper posits on a reasonable quantification of the intrinsic reliability offered by an existing transmission network structure for a given set of power transactions. We rely on the concept of transmission reliability margins in the lines, which act as safety nets to protect system security in the face of aleatory uncertainties in the availability of transmission lines and epistemic uncertainty in accounting for the load demand patterns. This is proposed to be used as an equitable basis to charge the users of transmission network, generation and load consumption entities alike, over and above the usage charges levied according to the 'extent-of-use' normative. Using the tandem combination of deterministic and probabilistic load flow studies in conjunction with power flow tracing procedures, we propose a step-by-step procedure to arrive at a novel transmission pricing methodology. A six-bus Roy Billinton Test System (RBTS) is employed to illustrate the conceptual feasibility and the computational procedure.

A Shapley value approach for transmission usage cost allocation under contingent restructured market

“…In [8][9] D. Hur et al proposed various variants of procedures to allocate reliability contribution to market participants. In [10] V. Vijay et al proposed a novel probabilistic transmission pricing methodology with consideration of transmission reliability margin. In 2008 H. Monsef et al [11] presented the transmission cost allocation based on use of reliability margin under contingency condition.…”

Transmission Usage and Cost Allocation Using Shapley Value and Tracing Method: A Comparison

“…In July 2004, D. Hur et al [30] proposed various methods to allocate reliability contribution to market participants. In June 2010, V. Vijay et al [31] proposed a novel probabilistic transmission pricing methodology with consideration of transmission reliability margin. In 2008, H. Monsef et al [32] presented the transmission cost allocation based on use of reliability margin under contingency condition.…”

Transmission pricing using power flow tracing methodology with consideration N-1 security criterion

“…In [24] authors proposed various methods to allocate reliability contribution to market participants. A novel probabilistic transmission pricing methodology with consideration of transmission reliability margin was done [25]. In [26] authors presented the transmission cost allocation based on use of reliability margin under contingency condition.…”