TITLE:
Review of Methods to Calculate Congestion Cost Allocation in Deregulated Electricity Market
AUTHORS:
Jiawei Zhao, Jianfeng Lu, Kwok Lun Lo
KEYWORDS:
Deregulated Electricity Market, Transmission Congestion Management, Congestion Cost Allocation, Uniform Marginal Price and Locational Marginal Price
JOURNAL NAME:
World Journal of Engineering and Technology,
Vol.4 No.3D,
October
20,
2016
ABSTRACT:
With maturing deregulated environment for electricity market, cost of transmission congestion becomes a major issue for power system operation. Uniform Marginal Price and Locational Marginal Price (LMP) are the two practical pricing schemes on energy pricing and congestion cost allocation, which are based on different mechanisms. In this paper, these two pricing schemes are introduced in detail respectively. Also, the modified IEEE-14-bus system is used as a test system to calculate the allocated congestion cost by using these two pricing schemes.