Review of Methods to Calculate Congestion Cost Allocation in Deregulated Electricity Market

With maturing deregulated environment for electricity market, cost of transmission congestion becomes a major issue for power system operation. Uniform Marginal Price and Locational Marginal Price (LMP) are the two practical pricing schemes on energy pricing and congestion cost allocation, which are based on different mechanisms. In this paper, these two pricing schemes are introduced in detail respectively. Also, the modified IEEE-14-bus system is used as a test system to calculate the allocated congestion cost by using these two pricing schemes.

Transmission Cost Allocation by Power Tracing Based Equivalent Bilateral Exchanges

The allocation of transmission cost provides important references and signals for system expansions and investments.This paper proposes a power tracing based equivalent bilateral exchange(PTEBX)method in which network users are responsible for not only their induced power flows,but also power flows induced by whom they have equivalent bilateral exchanges with.The equivalent bilateral exchanges are recognized based on the power tracing.To evaluate the performance of different methods of allocating transmission cost,seven criteria are put forward that take into consideration characteristics of power systems.Theoretical analysis is then conducted to certify whether the methods satisfy the criteria.The results indicate that only the PTEBX method is able to satisfy all the seven criteria.Numerical examples based on the IEEE-30 system are presented to further demonstrate the applicability of the proposed method.

Development of a Circuit-theory Based Transmission Cost Allocation Method by Orthogonal Projection and Equal-sharing Principle

This paper presents a new solution to the problem of transmission cost allocation to its users.The proposed technique utilizes modified Z-bus theory,equivalent current injection and impedance of the generators and loads,and is developed by the equal-sharing as well as the orthogonal projection principle.The procedure is performed in three steps.First,the modified Z-bus theory is used to calculate the contribution of the users into the network bus voltages as well as the branch currents.Then,the equal sharing principle is confirmed by the game theory solutions and is subsequently applied to identify the users’contributions into the branch power flows.After that,the orthogonal projections of the contributions are calculated and the concept of effective contributions is suggested.The proposed methodology provides the percentage shares of the users on the network complex variables,which help to better assess the contributions.A 2-bus and the IEEE 30-bus test system are used to validate the proposed technique.Finally,the proposed methodology is applied to the polish 2383-bus system to emphasize its applicability to large practical systems.

Serial Cost Allocation in the Cooperative Purchasing Organization

Under the seller's quantity discount, buyers self-organize or rely on a third party to aggregate their pur- chasing quantities to obtain lower prices. Because of the unequal member contributions in the cooperative pur- chasing organization, the buyers' strategy is diferent, the members often fluctuate, and the organizations do not sustain themselves. An efective mechanism is necessary to improve the performance of purchasing groups. We study the various forms of cost allocation mechanism in practice. Diferent allocation rules may have influence on the buyers' behavior(i.e., purchasing quantities, whether joining the organization or not). We analyze the serial cost allocation and equilibrium purchasing quantity based on a Nash equilibrium, and the results show that each buyer is worse of when not participating in the existence buying organization of the other buyers. We further find that the serial mechanism just confirms the most efcient Nash equilibrium: reasonable cost allocation rule is necessary for the subjects to identify their optimal strategy.

Benefit-based cost allocation for residentially distributed photovoltaic systems in China:A cooperative game theory approach

Distributed photovoltaic(PV)systems have constantly been the key to achieve a low-carbon economy in China.However,the development of Chinese distributed PV systems has failed to meet expectations because of their irrational profit and cost allocations.In this study,the methodology for calculating the levelized cost of energy(LCOE)for PV is thoroughly discussed to address this issue.A mixed-integer linear programming model is built to determine the optimal system operation strategy with a benefit analysis.An externality-corrected mathematical model based on Shapley value is established to allocate the cost of distributed PV systems in 15 Chinese cities between the government,utility grid and residents.Results show that(i)an inverse relationship exists between the LCOEs and solar radiation levels;(ii)the government and residents gain extra benefits from the utility grid through net metering policies,and the utility grid should be the highly subsidized participant;(iii)the percentage of cost assigned to the utility grid and government should increase with the expansion of battery bank to weaken the impact of demand response on increasing theoretical subsidies;and(iv)apart from the LCOE,the local residential electricity prices remarkably impact the subsidy calculation results.

Game theory approach to optimal capital cost allocation in pollution control

This paper tries to integrate game theory, a very useful tool to resolve conflict phenomena, with optimal capital cost allocation issue in total emission control. First the necessity of allocating optimal capital costs fairly and reasonably among polluters in total emission control was analyzed. Then the possibility of applying game theory to the issue of the optimal capital cost allocation was expounded. Next the cooperative N person game model of the optimal capital cost allocation and its solution ways including method based on Shapley value, least core method, weak least core methods, proportional least core method, CGA method, MCRS method and so on were delineated. Finally through application of these methods it was concluded that to apply game theory in the optimal capital cost allocation issue is helpful to implement the total emission control planning schemes successfully, to control pollution effectively, and to ensure sustainable development.

Allocating Ex-post Deviation Cost of Virtual Power Plants in Distribution Networks

Virtual power plants(VPPs)including distributed generation,energy storage,and elastic load are emerging in distribution networks.Multiple VPPs can participate in electricity market as an aggregated entity and effective cost allocation mechanism among VPPs is a crucial issue.This paper focuses on allocating ex-post cost of VPPs incurred by deviation between actual power and ex-ante schedule in a two-settlement electricity market.We obtain approximate quadratic formulation of ex-post deviation cost considering network loss and develop an analytical cost allocation algorithm based on cooperative game theory.The allocated cost is consistent with cost causation principle and provides VPPs with incentive for aggregation.The proposed allocation method and relevant theoretical result are evaluated and verified by numerical tests.

Experimental Research of the Radiator Thermal Performance Test Equipment and Its Application in Heating System

Radiator thermal performance test equipment plays a key role in the processing of developing a new type of heat radiator and its application products.The precise of temperature controlling,temperature measuring andflow measuring are the vital factors for a radiator thermal performance test equipment.Based on the above back-ground,this paper improves the measurement and control system of radiator thermal performance test equip-ment,which improves the accuracy of the radiator thermal performance test equipment.This paper also optimizes the software and hardware system simultaneously so as to improve the precision of the auto-test system of test equipment.Theflow rate ranges from 175 kg/h to 178 kg/h under different conditions.The average is 176.5 kg/h and the deviation rates are from 1.62%to 1.97%.The heat produced under various conditions is different.The maximum is 4.3 kW and the minimum is 4.2 kW for condition 1,the maximum is 3.3 kW and the minimum is 3.2 kW for condition 2 and the maximum is 1.95 kW and the minimum is 1.89 kW for condition 3.However,the deviation rate is about 2.9%,which shows that the device has high stability and high precision.This paper studies a new electronic heat cost allocate meter test method by radiator thermal performance test equipment at the same time.This paper tests temperature changes through four measures points and gets a result appeared as a heat backup which should be avoided when using in the test of electronic heat cost allocate meter.Some experiences and references could be gained for further research in the heating system from this test and research.

Transmission Use of System Charging for Differentiating Long-term Impacts from Various Generation Technologies

This paper proposes a novel transmission use of system(TUoS)charging method,which is able to 1)acknowledge the trade-offs between short-run congestion cost and long-run investment cost when justifying economic network investment,2)identify the impacts of different generation technologies on congestion cost and network investment,and 3)translate these impacts into economically efficient TUoS tariffs that differentiate generation technologies.An incremental capacity change from a generator will impact the congestion costs at each branch,which is then translated into the impacts on investment time horizons.The difference in the present values with and without the incremental change for a branch is its long-run incremental cost(LRIC).The final TUoS tariff for this generator is the sum of all LRIC triggered by its capacity increment.The proposed method is demonstrated on a modified IEEE 14-bus system to show its effectiveness over the traditional approach.Results show that it can provide cost-reflective TUoS tariffs for different generation technologies at the same sites by examining their respective impacts on congestion and investment.It thus can incentivize appropriate generation expansion to reduce congestion costs and ultimately network investment cost.