Comparative Analysis of Different Types of Power Transactions in Smart Grid

Abstract

Due to the open access transmission network and deregulation of the power industry, a large number of transactions are possible among the power utilities. The power transactions lead to insecure and unreliable operation of the power system. For obtaining financial benefits of power market without any security, stability, and reliability issues, it is necessary to determine the feasible transactions from among all possible transactions. This paper presents a comparative analysis of feasible transactions between power utilities in a bilateral and multilateral environment while the financial benefits of the power entities are considered as per the rules of the deregulated power market. Simultaneously, the operating constraints of the system are considered, which leads to an optimal power flow problem. In this paper, optimal transactions are determined with minimization of generation cost, transmission cost of transactions, and congestion rent. The comparative analysis of different transactions has performed on the modified IEEE 14-bus system.