Transmission Pricing And Congestion Management In Electric Power Market

Electric industry has changed planned economy into market economy in china. Separations of generation and grid and bidding price have become mature. The electric reform comes into a new period, because network companies will become independent institutioiiL and transmission open access is necessary. After the grid separates form the generation, it is benefit to the fair competition of participants, to the control of transmission charges, and to the development of grid. At the same time, the network companies* must open to all users fairly and receive the transmission charges rationally. So how to charge transmission cost will become a focus problem.Under this condition, I think the research of transmission pricing has practical significance and is a challenging work. This paper systemically discusses the whole process of transmission service using the knowledge of electric system, economics, applied mathematics and computer programs. This paper classifies the transmission cost into three parts, fixed transmission cost, transmission congestion and loss, and classifies the transmission pricing into point-to-point type and grid type. For the two types, this paper gives several calculation methods of transmission pricing and describes the advantages and disadvantages of each method. This paper also introduces modified cooperative game theory into transmission pricing and it is a new thought to the transmission pricing.Congestion management is a very difficult problem. This paper presents the modified OFF model, and calculates the LMPs. The difference of each nodal LMP is the congestion cost. And also this paper brings forward the concept of financial transmission right(FTR) to avoid transmission risk.The maui merit of the paper is that it gives many samples to demonstrate the theories of calculation methods, which is easy to understand for the readers.Finally, this paper exploits simulation software using the transmission system of 14 nodes.