Power Flow Based Contract Path Method for Transmission Pricing
I. Kranthi Kiran1, A. Jaya Laxmi2
1I.Kranthi Kiran, Department of EEE, MVGR College of Engineering, Vizianagaram, India.
2Dr. A.Jaya Laxmi, Department of EEE, JNTUH College of Engineering, Hyderabad, India.
Manuscript received on December 08, 2014. | Revised Manuscript received on December 15, 2014. | Manuscript published on January 05, 2014. | PP: 61-65  | Volume-3 Issue-6, January 2014. | Retrieval Number: F1988013614/2014©BEIESP
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: Provision of correct economic signals to the market participants like generation companies, wheeling companies and customers in a deregulated electricity market is necessary. The operation of the wheeling company between generation companies and customers must ensure reliable and secured operation of the overall power system. Proper wheeling cost methodology is needed to allocate the cost of transmission transactions to the customers to achieve it. Accurate transmission pricing scheme still remains a challenging task. This paper gives an overview of different cost components of wheeling party, principles of wheeling pricing and a detailed presentation of a power flow tracing methodology and ‘embedded’ wheeling cost methodology namely ‘Contract path method’. This method is applied to an application example illustrated to calculate the wheeling cost and the results obtained are illustrated.
Keywords: Contract path, Embedded cost, Wheeling, Wheeling cost