• A cost-causal marginal participation method using min-max fairness for transmission services cost allocation

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    • Keywords


      Cost allocation; counter-flows; power flow; marginal pricing; marginal participation; min-max fairness; reliability cost; transmission system

    • Abstract


      We consider the problem of fair allocation of the cost of a transmission system among load and generation entities using the marginal participation approach. We show that a cost-causal approach involving capacity-based line cost rate and a min-max fair economic slack bus selection for price-taking entities leads to arigorously fair and more accurate implementation of marginal participation method. In the existing methods the counter-flows are masked, which is a compromise with fairness and linearity. However, if the counter-flows areincentivized then it can lead to pay-offs to some entities. The proposed approach solves the problem of pay-offs without masking the counter-flows. This is achieved by separation of the total transmission services cost into usage, reliability and residual capacity components. The allocation of the first two components is based on the min-max fairness policy, and the residual capacity costs are allocated on a pro-rata basis. Simulation results on multiple IEEE test systems, Indian utility power systems and extensive comparative evaluations for the contemporary methods demonstrate the claims made.

    • Author Affiliations



      1. Electrical Engineering Department, Birla Vishvakarma Mahavidyalaya Engineering College, Vallabh Vidyanagar, India
      2. Department of Electrical Engineering, Indian Institute of Technology Bombay, Mumbai, India
    • Dates

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