Scheduled incremental and unscheduled interchange cost components of transmission tariff allocation: a novel approach for maintaining the grid discipline

A novel approach of transmission tariff allocation (TTA) is proposed in this study. TTA comprises scheduled incremental cost (SIC) and unscheduled interchange cost (UIC) components. This approach demonstrates the use of proposed SIC and UIC components of tariff in incremental revenue reconciliation along with the provision of heavy penalty to maintain the grid discipline against extreme unscheduled withdrawal. SIC has been allocated to users of transmission network for their scheduled injections or withdrawals. UIC take care of excessive unscheduled interchange (UI) in load or generation. Incremental power flow in MVA is used to asses and allocation of these components. The scheduled increment (SI) in load or generation is associated with planned load growth rate whereas the UI in load or generation may arise intermittently. All generating units are participating to generate both active and reactive power as per their generation participation factor to match the SI and UI demands. The SIC component may be added to the nominal TTA to user. The UIC component of tariff is an additional burden or penalty imposed on users because of extreme unscheduled withdrawal. The results are obtained for SIC and UIC components of TTA by using 6 bus and IEEE 14 bus systems.