Research on transmission services pricing based on allocation of fixed transmission cost

Abstract

In the electricity market environment, charging based on the traditional spot electricity price results in the payment imbalance of electric network, and go against the development of the power system, so it is necessary to modify the spot price. The key of the modification lies in how to calculate the fixed per unit transmission cost of every node, that is how to allocate the fixed transmission cost to the users. In order to solve this problem, power flow tracing is developed to modify the spot price. By making a study of the fundamental principle of power flow tracing, the method of path searching is put forward based on the graph theory. By using the method, downstream tracing algorithm and upstream tracing algorithm according to the proportional distribution principle are given in this paper. Furthermore, in order to improve the computational efficiency of the algorithm, branch expunction method is introduced in the algorithm to optimize the node order. A 5-bus sample system is used to prove this algorithm is feasible and valid. Finally, by using the result of power flow tracing to get fixed node transmission cost and introducing it to modify the spot price, the synthetical price can be achieved.