Marginal Pricing of Transmission Services: An Analysis of Cost Recovery

An Advanced Method of Congestion Management for Optimal Energy Pricing

“…However, an embedded cost, transmission usage tariff (TUT) is added in to this formula. In fact, market operators use different approaches to account for this tariff, such as: postage stamp rate method, contract path method, MW-mile method, unused transmission capacity method or counter-flow method (Perez-Arriaga et al, 1995;Shahidehpour et al, 2002;Shu & Gross, 2002). So far, pricing for transmission services using such methods above are still separately accounted for from the energy market price calculation.…”

Empirical analysis of the Congestion Revenue Cycle in Europe's electricity grid

“…the last accepted bid sets the clearing price for all accepted bids 10 . The auction revenue is thus given by the product of available transfer capacity times the marginal bid price (also called the clearing price, CP), see formula 1:…”

Congestion Management using Genetic Algorithm in Deregulated Power Environments

“…In recent years the methods of managing transmission congestion have been under intense scrutiny [12][13][14][15][16][17][18][19][20][21]25]. Presently there are two distinct congestion management systems widely being employed: nodal pricing [20] and zonal pricing methods [13].…”

“…Presently there are two distinct congestion management systems widely being employed: nodal pricing [20] and zonal pricing methods [13]. Many of these congestion management models are based on optimal power flow algorithms [13][14]. A primal-dual interior point linear programming method is applied to solve the congestion model in [15].…”