Implementation of LMP-FTR Mechanism in an AC-DC System

Sarkar, Vaskar; Khaparde, S.A.

doi:10.1109/tpwrs.2008.920202

Cited by 16 publications

(12 citation statements)

References 27 publications

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“…The LMP-FTR mechanism framework establishment believes the regulation of the system with fully AC and unregulated of the system is through proxy-transaction bids. However, the flow of the system is management and maintained [15].…”

Section: Related Workmentioning

confidence: 99%

LMP Congestion Management Using Enhanced STF-LODF in Deregulated Power System

Kumar¹,

Mohan²

2016

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Nowadays electricity market industry is become a major impact on power system for privatization and deregulation of power in global wise. As per the limitation of the transmission system, the complexity arises and the supply fact will be with demand at the time of balancing. The congestion of the power system is occurring based on the transmission limits of the power desire and amount for operating the system. In order to avoid transmission line congestion, enhanced STF-LODF method is proposed. It shows the regulated line transmission flow with generating units by implementing renewable energy resources (RER) based on enhanced STF-LODF in power systems. It avoids the congestion of transmission line frequently in the power system and manages price based on pricing and sensitivity approach, and also manages optimal location of congestion transmission and instability issues of voltage. The congestion management of Locational Marginal Pricing (LMP) is performed with minimum line loss, less cost, line flow, better sensitivity and better performances in optimal power flow and control flow. The efficiency of the proposed power system is analyzed and verified by the simulation results of tested IEEE 14 bus system.

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Section: Related Workmentioning

confidence: 99%

LMP Congestion Management Using Enhanced STF-LODF in Deregulated Power System

Kumar¹,

Mohan²

2016

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“…Similarly, for loss-only FTRs, the loss collection should be sufficient to pay full FTR credits. The revenue adequacy of COFTRs can be ensured by means of a well known mechanism called as the simultaneous feasibility test (SFT) [1], [2], [5], [6], [11], [16]. Similarly, a procedure, called as the offset capacity test (OCT), can be employed for the revenue adequate issuance of LOFTRs.…”

Section: A Revenue Adequacymentioning

confidence: 99%

“…However, the basis of the loss hedging theory of [9] is a revenue adequacy test mechanism [2] that itself is not well justified with regard to its applicability to the practical system condition. The primary limitations of the above revenue adequacy test mechanism are discussed in [6] and [11]. In [12], a counterexample is presented showing how the particular revenue adequacy test may, in reality, end up with revenue shortfall in a practical environment.…”

Section: Introductionmentioning

confidence: 99%

Introduction to Loss-Hedging Financial Transmission Rights

Sarkar

Khaparde

2009

IEEE Trans. Power Syst.

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Abstract-In order to guard forward contracts from the locational marginal price (LMP) volatility, financial transmission rights (FTRs) are issued in the centralized power markets. However, the current FTR system can provide hedge only against the congestion components of LMP differentials. Consequently, the loss components remain unhedged. To bridge the gap, a framework is developed in this paper to implement an FTR system that will provide hedge against the loss prices. The availability of loss-hedging FTRs in addition to the congestion hedging FTRs further reduces the exposure of the forward market participants to the LMP volatility. The loss-hedging framework developed is carefully designed to fit the practical environment. All the primary issues for the implementation of loss-hedging FTRs, such as the revenue adequacy test, auction, and auction revenue rights, are carefully addressed. Revenue adequacy of loss-hedging FTRs can be ensured by means of a test called as the offset capacity test. Some efficient policies are also designed for the successful functioning of loss-hedging FTRs. At the end of the paper, a case study is carried out to assess the effectiveness of the methodology developed.

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“…Similar to that as for a lossless power dispatch model, the total target payment (TTP) to the FTR holders can be calculated as [17], [24] (19) [17] at a particular hour are those FTRs that are converted into the cash at that hour. Irrespective of the direction of congestion, the value of an active FTR is always given by the product of its MW amount and the congestion component of the LMP differential on its path.…”

Section: Matrix Loss Distribution Modelmentioning

confidence: 99%

DCOPF-Based Marginal Loss Pricing With Enhanced Power Flow Accuracy by Using Matrix Loss Distribution

Sarkar

Khaparde

2009

IEEE Trans. Power Syst.

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Abstract-On current days, many of the power markets are adopting the practice of marginal loss pricing. The dc optimal power flow (DCOPF) model is still mostly used for the purpose of market clearing owing to its simplicity, robustness and higher speed of convergence. Within the DCOPF framework, transmission line losses are represented as additional external loads on the system. In the classical DCOPF model of marginal loss pricing, as implemented in the New England market, the aggregated network loss is distributed over the system nodes in a fixed ratio. To gain more design flexibility in the distribution of system losses, a matrix loss distribution (MLD) framework is developed in this paper maintaining compatibility with financial transmission rights. In MLD, each individual line is considered separately for the purpose of loss distribution. The ratio in which the power loss in a certain line is distributed can be different from that in which the power loss in another line is distributed. The additional design flexibility thus obtained assists in making a more accurate representation of the power flow. The benefit of MLD is illustrated through a case study. An energy reference independent application of MLD is also suggested. Congestion component of .

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Implementation of LMP-FTR Mechanism in an AC-DC System

Cited by 16 publications

References 27 publications

LMP Congestion Management Using Enhanced STF-LODF in Deregulated Power System

LMP Congestion Management Using Enhanced STF-LODF in Deregulated Power System

Introduction to Loss-Hedging Financial Transmission Rights

DCOPF-Based Marginal Loss Pricing With Enhanced Power Flow Accuracy by Using Matrix Loss Distribution

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