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A new method for charging transmission services

Zhao, Chunyang and Galloway, Stuart and Lo, K.L. (2009) A new method for charging transmission services. In: Proceedings of the 44th International Universities Power Engineering Conference (UPEC), 2009. IEEE, New York, pp. 473-477. ISBN 9781424468232

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In the deregulated power system, transmission services are treated as a commodity sold to market participants. So a charging method must be developed to support this concept. At present charging for transmission services is based on use of capacity or nodal pricing. There is a view that nodal pricing is better because it is more reflective of power market operation. However neither of these methods is entirely superior over the other one. In this paper a new charging method is introduced to resolve the transmission payment problem. The new method is a combination of the usage and nodal pricing methods. The proposed method makes use of advantages in both methods to achieve transmission charged equally. The combined method is tested on IEEE 118 network and turns out that the result is a fair charging method for market participants. In addition its application is not influenced by political borders, which means it can be used in a single system or in an area included many zones.