Power flow tracing based transmission congestion pricing in deregulated power markets

• This paper proposes an optimization technique based power flow tracing method for determining the transmission congestion cost.
• The congestion in the transmission lines are created using maximization of real power demand at load buses using PSO.
• The power flow tracing is done using Bialek’s tracing principle.
• The transmission congestion pricing and congestion pricing has been calculated from the base case power flow and the congested power flow per MW.
• The pricing calculations are tested on Modified IEEE-30 bus system and Indian Utility 69 bus test system.

The objective of this paper is to propose a simple transmission congestion pricing scheme based on tracing principle by considering generator fixed cost, cost for incurring loss and transmission congestion cost. Restructuring has brought about considerable changes by the virtue of which electricity is now a commodity and has converted into deregulated type. Such a competitive market has paved way for innumerable participants. This concept of restructuring has led to overloading of transmission lines. In this paper, power flow tracing has been employed by using suitable optimization algorithm, where the real power generation has been maximized. Congestion in the transmission line has been produced in a new fashion by maximizing the real power demand. The power flow under normal operating condition and congestion is determined and hence the difference in power flow is estimated. Based on the estimated power flow difference, the transmission line congestion cost is computed. Pool model and bilateral model has been considered in simulation study to introduce the concept of deregulation. The proposed method is tested and validated on Modified IEEE 30 bus test system and Indian utility 69 bus test system.