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Bilateral trading in electricity is one of the typical deregulated power market trading methods and it has its own way to calculate and allocate congestion cost. In this paper, using as a practical bilateral structure example, the British electricity market is stated in details especially the operation mechanism and the methodology of imbalance settlement. A corresponding congestion cost allocation method for bilateral market is introduced briefly by equations and is simulated in a modified IEEE-14 bus model to investigate its pros and cons

A Transmission Congestion Cost Allocation Method in Bilateral Trading Electricity Market