<?xml version="1.0" encoding="UTF-8"?><!DOCTYPE article  PUBLIC "-//NLM//DTD Journal Publishing DTD v3.0 20080202//EN" "http://dtd.nlm.nih.gov/publishing/3.0/journalpublishing3.dtd"><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" dtd-version="3.0" xml:lang="en" article-type="research article"><front><journal-meta><journal-id journal-id-type="publisher-id">EPE</journal-id><journal-title-group><journal-title>Energy and Power Engineering</journal-title></journal-title-group><issn pub-type="epub">1949-243X</issn><publisher><publisher-name>Scientific Research Publishing</publisher-name></publisher></journal-meta><article-meta><article-id pub-id-type="doi">10.4236/epe.2017.94B042</article-id><article-id pub-id-type="publisher-id">EPE-75298</article-id><article-categories><subj-group subj-group-type="heading"><subject>Articles</subject></subj-group><subj-group subj-group-type="Discipline-v2"><subject>Engineering</subject></subj-group></article-categories><title-group><article-title>
 
 
  The Security Correction of Large Consumers Long-Term Direct Power Trading Based on DC Power Transfer Distribution Factor
 
</article-title></title-group><contrib-group><contrib contrib-type="author" xlink:type="simple"><name name-style="western"><surname>Ouyang</surname><given-names>Xu</given-names></name><xref ref-type="aff" rid="aff1"><sup>1</sup></xref></contrib><contrib contrib-type="author" xlink:type="simple"><name name-style="western"><surname>Zhenggang</surname><given-names>Wang</given-names></name><xref ref-type="aff" rid="aff2"><sup>2</sup></xref></contrib><contrib contrib-type="author" xlink:type="simple"><name name-style="western"><surname>Bifeng</surname><given-names>Lv</given-names></name><xref ref-type="aff" rid="aff2"><sup>2</sup></xref></contrib><contrib contrib-type="author" xlink:type="simple"><name name-style="western"><surname>Jinguo</surname><given-names>Zhang</given-names></name><xref ref-type="aff" rid="aff3"><sup>3</sup></xref></contrib><contrib contrib-type="author" xlink:type="simple"><name name-style="western"><surname>Jiangang</surname><given-names>Yao</given-names></name><xref ref-type="aff" rid="aff1"><sup>1</sup></xref></contrib><contrib contrib-type="author" xlink:type="simple"><name name-style="western"><surname>Bin</surname><given-names>Wang</given-names></name><xref ref-type="aff" rid="aff2"><sup>2</sup></xref></contrib></contrib-group><aff id="aff2"><addr-line>State Grid Hunan Electric Power Company, Changsha, China</addr-line></aff><aff id="aff1"><addr-line>College of Electrical and Information Engineering, Hunan University, Changsha, China</addr-line></aff><aff id="aff3"><addr-line>State Grid Yueyang Power Supply Company, Yueyang, China</addr-line></aff><pub-date pub-type="epub"><day>06</day><month>04</month><year>2017</year></pub-date><volume>09</volume><issue>04</issue><fpage>365</fpage><lpage>375</lpage><history><date date-type="received"><day>February</day>	<month>20,</month>	<year>2017</year></date><date date-type="rev-recd"><day>Accepted:</day>	<month>March</month>	<year>30,</year>	</date><date date-type="accepted"><day>April</day>	<month>6,</month>	<year>2017</year></date></history><permissions><copyright-statement>&#169; Copyright  2014 by authors and Scientific Research Publishing Inc. </copyright-statement><copyright-year>2014</copyright-year><license><license-p>This work is licensed under the Creative Commons Attribution International License (CC BY). http://creativecommons.org/licenses/by/4.0/</license-p></license></permissions><abstract><p>
 
 
   
   The experiments of large consumers direct power trading is conducting in china nationwide, and it’s important to the reform of electricity market. To compensated efficiencies in security correction of large consumers direct power trading, a novel security correction method based on DC power transfer distribution factor was proposed. Using the presented method to comply security correction, all the transactions that satisfy the specific requirements of maximizing social welfare are able to enter security correction process, and when the power of transmission line is out of limit, this method avoid the transaction which causes this problem is abandoned directly by introducing supplement transactions. The simulation has shown that the proposed security correction method of large consumers direct power trading based on DC power transfer distribution factor is effective. 
  
 
</p></abstract><kwd-group><kwd>Large Consumers</kwd><kwd> Direct Power Trading</kwd><kwd> DC Power Transfer Distribution Factor</kwd><kwd> Security Correction</kwd><kwd> Electricity Markets</kwd></kwd-group></article-meta></front><body><sec id="s1"><title>1. Introduction</title><p>The direct power trading between power users and power generation enterprises refers to electricity users and generation enterprises who meet the conditions for access to carry out power purchasing and selling transactions directly base on the principle of voluntary participation and independent negotiation [<xref ref-type="bibr" rid="scirp.75298-ref1">1</xref>]. Large consumers direct power trading is one of the direct power trading between power users and power generation enterprises, as its name implies, requires the power users have a higher voltage level and a larger electricity consumption, for instance, large consumers direct power trading in Hunan province requires the electricity users “receiving end voltage is above or equal to 110 kV, and last annual electricity consumption is more than 200 million・kWh”.</p><p>For the purposes of electricity market change from government regulation to openness, and then establish a market-oriented mechanism, large consumers direct power trading is an inevitable part. In the market-oriented reform of electric power industry in America, Britain and Japan, large consumers direct power trading has been implemented in all these country [<xref ref-type="bibr" rid="scirp.75298-ref2">2</xref>] [<xref ref-type="bibr" rid="scirp.75298-ref3">3</xref>].</p><p>Large consumers direct power trading in China started in 2002, in the electricity system reform programme issued by The State Council, this concept was first proposed. In 2004, the National Development and Reform Commission and the State Electricity Regulatory Commission jointly issued “Interim Measures about Power Users Purchase Electricity from Generation Enterprises Directly”, clarified the purposes and principles. Since 2013, especially after the release of government documents, because of its transition in the resource allocation model, introducing competition mechanisms in the sales side market and other advantages [<xref ref-type="bibr" rid="scirp.75298-ref4">4</xref>], large consumers direct power trading has been conducted in many provinces.</p><p>Security correction is essential to large consumers direct power trading. Out of the power system security considerations, the transaction result needs to go through security correction to determine whether it meets the constraints on power system security before it will be truly implemented. On this issue, there have been some research works at this present. The content and process of monthly security correction in provincial power company is introduced in [<xref ref-type="bibr" rid="scirp.75298-ref5">5</xref>]. A case study of northeast regional electricity market is presented in [<xref ref-type="bibr" rid="scirp.75298-ref6">6</xref>], in this paper, the problem of monthly security constrained dispatching is studied. A congestion management algorithm to minimize the cost of purchasing electricity from generation plants in generation-side electric power market is developed in [<xref ref-type="bibr" rid="scirp.75298-ref7">7</xref>]. Security correction system of power generation plant in east China power grid is indicated in [<xref ref-type="bibr" rid="scirp.75298-ref8">8</xref>]. These studies made some achievements in security correction of large consumers direct power trading, nevertheless, these research simply abandon trading outcome which doesn’t meet the security constraint. Such an approach will hurt enthusiasm of consumers and power generation, is not conducive to large consumers direct power trading.</p><p>Regarding the issue above, based on DC Power Transfer Distribution Factor (PTDF), a new security correction method of large consumers direct power trading is developed in this paper. Through the introduction of supplemental transactions, this method is able to encourage large users to carry out direct electricity purchase. In this article, a mathematical model is established, and the effectiveness of the proposed method is verified by an example system.</p></sec><sec id="s2"><title>2. Direct Power Trading Mode</title><sec id="s2_1"><title>2.1. Transaction Model</title><p>At present, there are primarily two types of large consumers direct power trading modes, namely direct negotiation transaction and centralized matching transaction. Direct negotiation transaction means consumers and generator companies conclude the transaction through bilateral and independent negotiation, and transaction result will be submitted to the Independent System Operator (ISO). Direct negotiation transaction is flexible and easy to implement, so it’s the main way to carry out large consumers direct power trading at an initial stage. However, it also has characteristics such as small competition intensity and opaque price signal [<xref ref-type="bibr" rid="scirp.75298-ref9">9</xref>].</p><p>In the background of the market-oriented reform of generation-side electric power market has been carried out for many years and the power market technical support system has been perfected, compared with direct negotiation transaction, centralized matching transaction is more suitable for large consumers direct power trading, and is beneficial to the construction of the market in the future [<xref ref-type="bibr" rid="scirp.75298-ref2">2</xref>].</p><p>To maximize social welfare, centralized matching transaction obtains transaction result according to generators and large users of their declared transfer quantity and price. The exact process is as follows. First of all, sort declared price of buyer from high to low and declared price from seller low to high, then match these price one by one, the difference between buyer’s price and seller’s price is greater than or equal to zero is effective transaction. Effective transaction determines transaction volume, if there is surplus, then enter the top of the queue to continue until the transaction is complete. The mathematical model is:</p><disp-formula id="scirp.75298-formula278"><label>(1)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x2.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x3.png" xlink:type="simple"/></inline-formula> is social welfare, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x4.png" xlink:type="simple"/></inline-formula>is set of large users, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x5.png" xlink:type="simple"/></inline-formula>is set of power generation enterprises, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x6.png" xlink:type="simple"/></inline-formula>and <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x7.png" xlink:type="simple"/></inline-formula> is declared price of buyer and seller respectively, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x8.png" xlink:type="simple"/></inline-formula>is transaction volume which is given by:</p><disp-formula id="scirp.75298-formula279"><label>(2)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x9.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x10.png" xlink:type="simple"/></inline-formula> is declared transfer quantity of large users<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x11.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x12.png" xlink:type="simple"/></inline-formula>is declared transfer quantity of large users<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x13.png" xlink:type="simple"/></inline-formula>.</p><p>The constraints of the model are as follows:</p><p>1) Power quantity balance</p><disp-formula id="scirp.75298-formula280"><label>(3)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x14.png"  xlink:type="simple"/></disp-formula><p>2) Active power flow constraint of transmission line</p><disp-formula id="scirp.75298-formula281"><label>(4)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x15.png"  xlink:type="simple"/></disp-formula><p>3) Total transaction amount</p><disp-formula id="scirp.75298-formula282"><label>(5)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x16.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x17.png" xlink:type="simple"/></inline-formula> is active power of transmission line<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x18.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x19.png" xlink:type="simple"/></inline-formula>is maximum active power flow of transmission line<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x19.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x20.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x19.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x20.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x21.png" xlink:type="simple"/></inline-formula>is maximum amount of large consumers direct power trading determined by ISO.</p></sec><sec id="s2_2"><title>2.2. Security Correction</title><p>In the actual trading, based on the above-mentioned centralized matching transaction model, security correction process is outlined in the following. First, for the model that does not consider the active power flow constraint of transmission line, solve the initial transaction result by the conventional optimization method or the fast algorithm [<xref ref-type="bibr" rid="scirp.75298-ref10">10</xref>]. And then, for each specific transaction in the initial transaction result, execute security correction in accordance with the price differential spread from high to low. Finally, determine whether the transmission line security constraints are fulfilled. When a specific transaction leads to the line out of its constraints, then give up this transaction directly. Repeat this process until all transactions have been checked.</p><p>This method is easy and fast, which embodies the principle of marketization. However, there are some problems with this method. For example, the impact of different transactions on the same line may be opposite. So, when a specific transaction executes security correction priority, it may fail and be discarded, but when the subsequent transaction joining, this specific transaction can pass the correction somehow [<xref ref-type="bibr" rid="scirp.75298-ref11">11</xref>]. The existence of this situation will result in the abandonment of some transaction which could have been carried out. Moreover, there are also disadvantages to set constraint of total transaction amount in Equation (5). Although it can guarantee the security and stability of the electricity market, but also may lead to some transaction which could have been to maximize social welfare cannot be implemented. The above-mentioned problems, in a manner, is a blow for large consumers direct power trading.</p></sec></sec><sec id="s3"><title>3. DC Power Transfer Distribution Factor</title><sec id="s3_1"><title>3.1. DC Power Flow</title><p>For the branches with node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x22.png" xlink:type="simple"/></inline-formula> and node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x22.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x23.png" xlink:type="simple"/></inline-formula> at both ends, the active power flow equation can be written as:</p><disp-formula id="scirp.75298-formula283"><label>(6)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x24.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula> is power flow of branch, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x26.png" xlink:type="simple"/></inline-formula>and <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x26.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x27.png" xlink:type="simple"/></inline-formula> is voltage of node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x26.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x27.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x28.png" xlink:type="simple"/></inline-formula> and node<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x26.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x27.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x28.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x29.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x26.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x27.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x28.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x29.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x30.png" xlink:type="simple"/></inline-formula>is angular phase difference of branch, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x26.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x27.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x28.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x29.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x30.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x31.png" xlink:type="simple"/></inline-formula>is branch conductance, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x25.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x26.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x27.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x28.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x29.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x30.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x31.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x32.png" xlink:type="simple"/></inline-formula>is branch susceptance [<xref ref-type="bibr" rid="scirp.75298-ref12">12</xref>].</p><p>For normal transmission network, the node voltage is equal to rated voltage, angular phase difference of branch is small, and the line resistance is much smaller than the reactance, that is, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x33.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x33.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x34.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x33.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x34.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x35.png" xlink:type="simple"/></inline-formula>, so Equation (6) can be simplified into:</p><disp-formula id="scirp.75298-formula284"><label>(7)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x36.png"  xlink:type="simple"/></disp-formula><p>where<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x37.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x37.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x38.png" xlink:type="simple"/></inline-formula>is branch reactance. Because power of node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x37.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x38.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x39.png" xlink:type="simple"/></inline-formula> is balance, consequently,</p><disp-formula id="scirp.75298-formula285"><label>(8)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x40.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x41.png" xlink:type="simple"/></inline-formula> is injected active power of node<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x41.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x42.png" xlink:type="simple"/></inline-formula>. For each node in the network except balance node, write the above equation, the matrix expression of DC power flow can be obtained:</p><disp-formula id="scirp.75298-formula286"><label>(9)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x43.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x44.png" xlink:type="simple"/></inline-formula> is <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x44.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x45.png" xlink:type="simple"/></inline-formula> order node admittance matrix, matrix element is:</p><disp-formula id="scirp.75298-formula287"><label>(10)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x46.png"  xlink:type="simple"/></disp-formula></sec><sec id="s3_2"><title>3.2. Transfer Distribution Factor</title><p>When active power of node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x47.png" xlink:type="simple"/></inline-formula> change<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x47.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x48.png" xlink:type="simple"/></inline-formula>, from Equation (9), the corresponding variation of node voltage phase angle is:</p><disp-formula id="scirp.75298-formula288"><label>(11)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x49.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x50.png" xlink:type="simple"/></inline-formula> is unit column vector, the value in the corresponding position of node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x50.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x51.png" xlink:type="simple"/></inline-formula> is 1, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x50.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x51.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x52.png" xlink:type="simple"/></inline-formula>is inverse matrix of node admittance matrix<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x50.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x51.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x52.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x53.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x50.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x51.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x52.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x53.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x54.png" xlink:type="simple"/></inline-formula>is the <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x50.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x51.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x52.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x53.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x54.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x55.png" xlink:type="simple"/></inline-formula> column vector of<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x50.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x51.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x52.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x53.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x54.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x55.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x56.png" xlink:type="simple"/></inline-formula>.</p><p>Assume <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x57.png" xlink:type="simple"/></inline-formula> is node-branch incident matrix of branch<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x57.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x58.png" xlink:type="simple"/></inline-formula>, and inflow is +1, outflow is −1, when active power of node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x57.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x58.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x59.png" xlink:type="simple"/></inline-formula> change, the homologous variation of active power flow of branch <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x57.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x58.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x59.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x60.png" xlink:type="simple"/></inline-formula> is:</p><disp-formula id="scirp.75298-formula289"><label>(12)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x61.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x62.png" xlink:type="simple"/></inline-formula> is transfer distribution factor between branch <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x62.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x63.png" xlink:type="simple"/></inline-formula> and</p><p>node<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x64.png" xlink:type="simple"/></inline-formula>.</p><p>Specific to large consumers direct power trading, let the nodes of branch <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula> is node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula> and node<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula>, when power generation enterprises (node<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x68.png" xlink:type="simple"/></inline-formula>) and large consumers (node<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x68.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x69.png" xlink:type="simple"/></inline-formula>) make a transaction with amount of<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x68.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x69.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x70.png" xlink:type="simple"/></inline-formula>, sincetransaction between power generation enterprises and large consumers subject to Equation (3), the active power of node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x68.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x69.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x70.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x71.png" xlink:type="simple"/></inline-formula> and node <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x68.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x69.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x70.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x71.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x72.png" xlink:type="simple"/></inline-formula> change <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x68.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x69.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x70.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x71.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x72.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x73.png" xlink:type="simple"/></inline-formula> and <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x65.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x66.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x67.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x68.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x69.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x70.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x71.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x72.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x73.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x74.png" xlink:type="simple"/></inline-formula> respectively, substitute this into Equation (12), transfer distribution factor in this situation is:</p><disp-formula id="scirp.75298-formula290"><label>(13)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x75.png"  xlink:type="simple"/></disp-formula><p>From Equation (13) we conclude that PTDF is only correlative with topology of transmission network, hence it’s easy to calculate and use.</p></sec></sec><sec id="s4"><title>4. Security Correction Based on DC PTDF</title><p>Suppose <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x76.png" xlink:type="simple"/></inline-formula> is a set of large consumers direct power trading preliminary result which haven’t executed security correction yet, and <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x76.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x77.png" xlink:type="simple"/></inline-formula> is one specifically transaction one of the result, subscript <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x76.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x77.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x78.png" xlink:type="simple"/></inline-formula> indicates the price differential spread from high to low, so the security correction process described in 2.2 is shown in <xref ref-type="fig" rid="fig1">Figure 1</xref>.</p><p>To solve the problems of security correction in this process, calculate DC PTDF <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x79.png" xlink:type="simple"/></inline-formula> between branch <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x79.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x80.png" xlink:type="simple"/></inline-formula> and transaction <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x79.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x80.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x81.png" xlink:type="simple"/></inline-formula> by using Equation (13), and modify security correction process as shown in <xref ref-type="fig" rid="fig2">Figure 2</xref>, where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x79.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x80.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x81.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x82.png" xlink:type="simple"/></inline-formula> is mark vector, in the security correction process, transaction resulting in transmission line out of its constrain and number of line will be remarked.</p><p>After all the specific transaction have been checked, execute security correction again to determine whether there is transaction which is unable to meet the constraint of security, if there is no transmission line out of power limitation, then the process is end, otherwise, supplemental transaction is performed.</p><p>Let <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x83.png" xlink:type="simple"/></inline-formula> is set of available supplemental trans- action, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x83.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x84.png" xlink:type="simple"/></inline-formula>is DC PTDF between branch <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x83.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x84.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x85.png" xlink:type="simple"/></inline-formula> and transaction<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x83.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x84.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x85.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x86.png" xlink:type="simple"/></inline-formula>, hence supplemental transaction should satisfy Equation (14):</p><disp-formula id="scirp.75298-formula291"><label>(14)</label><graphic position="anchor" xlink:href="http://html.scirp.org/file/75298x87.png"  xlink:type="simple"/></disp-formula><p>where <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x88.png" xlink:type="simple"/></inline-formula> is active power of normal transmission line, the adjusted power is taken into account, it can be calculated from the original transmission power, supplemental transaction value and Equation (13), <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x88.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x89.png" xlink:type="simple"/></inline-formula>is the maximum transmission power of this line, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x88.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x89.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x90.png" xlink:type="simple"/></inline-formula>is power margin percentage.</p><fig id="fig1"  position="float"><label><xref ref-type="fig" rid="fig1">Figure 1</xref></label><caption><title> Flow chart of original security correction</title></caption><graphic mimetype="image"   position="float"  xlink:type="simple"  xlink:href="http://html.scirp.org/file/75298x91.png"/></fig><fig id="fig2"  position="float"><label><xref ref-type="fig" rid="fig2">Figure 2</xref></label><caption><title> Flow chart of improved security correction</title></caption><graphic mimetype="image"   position="float"  xlink:type="simple"  xlink:href="http://html.scirp.org/file/75298x92.png"/></fig><p>The above conditions reflect two principles of choosing a supplemental transaction. First, it is able to reduce the load of the transmission line which is out of power limitation. Secondly, it will not exacerbate load on other lines. If there is no supplemental transaction to meet the conditions, according to the mark vector<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x93.png" xlink:type="simple"/></inline-formula>, forward exclude transaction which will lead to the line exceed its limitation, repeat the above procedure until security correction is ended.</p><p>The exact composition of the supplemental transaction set is as follows. <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula>is set of transaction whose social welfare is greater than 0 but is unable to carry out because of total transaction amount constraint, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x95.png" xlink:type="simple"/></inline-formula>is set of transactions whose social welfare is less than 0. For set<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x95.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x96.png" xlink:type="simple"/></inline-formula>, these transactions cannot be implemented in original security correction due to total transaction amount constraint. However, in the new security correction, there may be a transaction that is beneficial to the security of the system, so it’s reasonable to provide a separate trading amount for such transaction as a “reward”. For set<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x95.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x96.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x97.png" xlink:type="simple"/></inline-formula>, these transactions are unable to meet the requirement of maximum social welfare, so it’s impossible for them to win the bid in the original security correction. Nevertheless, in the electricity market, the successful bidder may negotiate with power generation and users in set <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x95.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x96.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x97.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x98.png" xlink:type="simple"/></inline-formula> in order to successfully pass security correction, and make the transaction of set <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x95.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x96.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x97.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x98.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x99.png" xlink:type="simple"/></inline-formula> into a transaction of set<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x95.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x96.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x97.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x98.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x99.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x100.png" xlink:type="simple"/></inline-formula>. Set <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x94.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x95.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x96.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x97.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x98.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x99.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x100.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x101.png" xlink:type="simple"/></inline-formula> is designed separately is to ensure that improved security correction in the more open market is still valid.</p></sec><sec id="s5"><title>5. Simulation</title><p>In order to verify the feasibility and effect of the method, a verification simulation is implemented in the IEEE New England test system, the system wiring diagram is shown in <xref ref-type="fig" rid="fig3">Figure 3</xref>.</p><p>There are three assumptions in the simulation calculation:</p><p>1) Large consumers direct power trading is mainly quarterly and monthly transactions, in this simulation, choose the monthly transaction as the type and electricity of every transaction distribute to one month (30 days) equally.</p><p>2) To simplify the calculation, only the load of large consumers direct power trading is taken into account, other load is not included.</p><p>3) Supplemental transaction is formed by set <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x102.png" xlink:type="simple"/></inline-formula> only.</p><p>Let the total transaction amount is<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x103.png" xlink:type="simple"/></inline-formula>, <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x103.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x104.png" xlink:type="simple"/></inline-formula>is 0.9, take branch TL1314 between node 13 and node 14 as the analysis object, its active power limitation is<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x103.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x104.png" xlink:type="simple"/></inline-formula><inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x105.png" xlink:type="simple"/></inline-formula>, power flow from node 14 to node 13 is positive. Examine the variety of active power of TL1314 in the simulation process to verify the effectiveness of the new method.</p><fig id="fig3"  position="float"><label><xref ref-type="fig" rid="fig3">Figure 3</xref></label><caption><title> IEEE New England test system</title></caption><graphic mimetype="image"   position="float"  xlink:type="simple"  xlink:href="http://html.scirp.org/file/75298x106.png"/></fig><p>Specific information of the transactions is shown in <xref ref-type="table" rid="table1">Table 1</xref>. Social welfare of each transaction in the table is greater than 0 and permutation of each transaction spread from high to low based on the price differential between declared buyer’s price and seller’s price. So we can easily conclude that No.5 and No.6 transaction are unable to enter security correction process due to total transaction amount constraint.</p><p>On the basis of these data, execute security correction process for each transaction, the active power variation of TL1314 is illustrated as below.</p><p><xref ref-type="fig" rid="fig4">Figure 4</xref> shows that the first three transactions will not lead to TL1314 active power out of limit, but when the fourth transaction is taken into consideration, power of TL1314 is out of its limitation. Hence the No. 4 transaction will be discarded directly in original security correction.</p><p>Now calculate DC PTDF between TL1314 and transaction which leads to power out of limit (i.e. No. 4 transaction), and calculate DC PTDF between TL1314 and transaction in the supplemental transaction set (i.e. No. 5 and No. 6 transaction). The results are in <xref ref-type="table" rid="table2">Table 2</xref>.</p><p>According to Equation (14), No. 5 transaction is chosen as supplemental transaction, and active power of TL1314 decline to<inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x107.png" xlink:type="simple"/></inline-formula>, this implies that security correction result is satisfactory. In this situation, No. 1 to No. 4 transactions is normal transactions, No. 5 transaction is supplemental transaction, compared with the original method, No. 4 transaction is not abandoned and solves the problem that No. 5 transaction is unable to enter security correction process due to total transaction amount constraint. In summary, new method is more flexible and effective.</p></sec><sec id="s6"><title>6. Conclusions</title><p>This paper proposes a new security correction method which is intended to solve the problem that the total transaction quantity of large consumers direct power trading is limited and the transaction result may be directly discarded during</p><table-wrap id="table1" ><label><xref ref-type="table" rid="table1">Table 1</xref></label><caption><title> Information of direct trading</title></caption><table><tbody><thead><tr><th align="center" valign="middle" >Transaction No.</th><th align="center" valign="middle" >Generator No.</th><th align="center" valign="middle" >User Node No.</th><th align="center" valign="middle" >Trading volume <inline-formula><inline-graphic xlink:href="http://html.scirp.org/file/75298x108.png" xlink:type="simple"/></inline-formula></th></tr></thead><tr><td align="center" valign="middle" >1</td><td align="center" valign="middle" >G08</td><td align="center" valign="middle" >13</td><td align="center" valign="middle" >500</td></tr><tr><td align="center" valign="middle" >2</td><td align="center" valign="middle" >G09</td><td align="center" valign="middle" >15</td><td align="center" valign="middle" >550</td></tr><tr><td align="center" valign="middle" >3</td><td align="center" valign="middle" >G01</td><td align="center" valign="middle" >8</td><td align="center" valign="middle" >500</td></tr><tr><td align="center" valign="middle" >4</td><td align="center" valign="middle" >G07</td><td align="center" valign="middle" >7</td><td align="center" valign="middle" >400</td></tr><tr><td align="center" valign="middle" >5</td><td align="center" valign="middle" >G03</td><td align="center" valign="middle" >4</td><td align="center" valign="middle" >450</td></tr><tr><td align="center" valign="middle" >6</td><td align="center" valign="middle" >G06</td><td align="center" valign="middle" >3</td><td align="center" valign="middle" >500</td></tr></tbody></table></table-wrap><table-wrap id="table2" ><label><xref ref-type="table" rid="table2">Table 2</xref></label><caption><title> The value of DC power transfer distribution factor</title></caption><table><tbody><thead><tr><th align="center" valign="middle" >Transaction No.</th><th align="center" valign="middle" >4</th><th align="center" valign="middle" >5</th><th align="center" valign="middle" >6</th></tr></thead><tr><td align="center" valign="middle" >DC PTDF</td><td align="center" valign="middle" >−0.3571</td><td align="center" valign="middle" >0.51127</td><td align="center" valign="middle" >−0.08064</td></tr></tbody></table></table-wrap><fig id="fig4"  position="float"><label><xref ref-type="fig" rid="fig4">Figure 4</xref></label><caption><title> Active power variation of TL1314</title></caption><graphic mimetype="image"   position="float"  xlink:type="simple"  xlink:href="http://html.scirp.org/file/75298x109.png"/></fig><p>security correction. The new approach based on DC power transfer distribution factor that is only correlative with the network structure and parameter. Moreover, supplemental transactions are introduced to the transactions that do not meet the requirement of security correction, so that all the transactions which can maximum social welfare is able to enter security correction progress and avoid being discarded directly.</p><p>The validity of the proposed method is demonstrated by a simulation. The result implies that in the case of the introduction of supplemental transactions, large consumer direct purchase transactions that will be discarded in the existing security correction process have been retained. This is significant for encouraging large users and power plants participate in transactions actively and beneficial to promotion of large consumers direct power trading.</p></sec><sec id="s7"><title>Cite this paper</title><p>Xu, O.Y., Wang, Z.G., Lv, B.F., Zhang, J.G., Yao, J.G. and Wang, B. 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