Comparison of Various Sunk Cost Methods of Transmission Pricing

EasyChair Preprint no. 335, version 1

Abstract

Issue of transmission pricing is a largely debated issue across the deregulated power systems. This is because, any transmission pricing scheme has to obey certain principles. The principles are contrasting and no single method can satisfy these principles. Every system tries to accommodate those principles that are based on prevailing conditions. Hence, there is no method that can be termed as ‘the best’ method. One has to make judicious choice between the methods. This paper compares a few popular methods for allocating transmission network cost to the constituents based upon various algorithms that find out ‘extent of use’ of the constituents. The results are compared for the locational variation under constrained and unconstrained cases.Thus, an attempt has been made to capture the congestion signal in transmission pricing method. The aim here is to determine that
method/methods whose results are a tradeoff between the results from, the method that provides the ideal locational signal(pLMP) and the one that is commonly used to simplify the settlement process (Postage Stamp). Based on the findings, certain important conclusions are drawn for suitability of a particular method/s. The results have been obtained on IEEE 30 bus system.

Keyphrases: Distributed Slack Bus MAPF, Hybrid, Locational Marginal Pricing, Marginal Participation Factors (MAPF), Postage Stamp, Real Power Tracing, Sunk cost, Transmission Pricing

@Booklet{EasyChair:335,
  author = {Heramb Mayadeo and Anjali Dharme and Abhijit Abhyankar},
  title = {Comparison of Various Sunk Cost Methods of Transmission Pricing},
  howpublished = {EasyChair Preprint no. 335},

  year = {EasyChair, 2018}}