Open AccessTransmission Pricing using Accounting Rate of Return and MW-km Methods
Author(s) -
Surender Reddy Salkuti
Publication year - 2019
Publication title -
international journal of innovative technology and exploring engineering
Language(s) - English
Resource type - Journals
ISSN - 2278-3075
DOI - 10.35940/ijitee.i8104.078919
Subject(s) - transmission network , transmission (telecommunications) , computer science , electric power transmission , electric power system , transmission system , rate of return , internal rate of return , power transmission , power (physics) , telecommunications , operations research , business , economics , finance , engineering , microeconomics , production (economics) , electrical engineering , physics , quantum mechanics
This paper presents a realistic and transparent approach to determine transmission cost for the transmission lines of a power system network by allocating the costs to all the participating generating units and load demands. There is a requirement for developing an appropriate transmission pricing mechanism which can give economic and technical information to the participants of the market, i.e., customers, generation and transmission companies. This paper proposes a methodology to allocate the cost of transmission in power system network. In this paper, accounting rate of return (ARR) and MW-km approaches have been used to evaluate the cost of transmission in the system. Simulation results are presented on standard IEEE 14 bus system.