A study of curtailment model of bilateral transaction based on relative entropy

Transaction curtailment has become the chief method of relieving transfer capability violation to maintain system security and reliability. To overcome the disadvantages of the minimum overall model and NERC model, by introducing the concept of relative entropy, this paper proposes the curtailment model of bilateral transaction based on relative entropy, in which the relative entropy is used as the objective function of the curtailment optimization problem. Then this curtailment characteristics of relative entropy model are analyzed, indicating that the transaction curtailment focuses on the transactions with higher sensitivity and the curtailed amount of transaction is proportional to its impact on the overloaded lines. Therefore, in market competition environment, the proposed model has not only the equitable characteristic of the NERC model to achieve transaction curtailment in terms of the contribution of transaction on the overloaded lines but also the effective characteristic of the minimum overall curtailment model to achieve less cost of transaction curtailment than that of the NERC model, providing more reasonable transaction curtailment. Finally, taking IEEE 14-node system for example, the effectiveness and feasibility of this proposed model are verified