Valuation of the transmission impact in a resource bidding process

A methodology is presented for the valuation of the transmission impact of a new resource in a transparent resource bidding process sponsored by a vertically integrated electric utility company. The attribute of the resource considered for this evaluation is its location, defined as the point of interconnection of the resource to the transmission network. The objective is to send so-called correct economic signals to potential new resources to connect to the tight places in the network for an optimum transmission impact. The value of the resource location is estimated based on its effects on losses and on potential loading and voltage problems in the system. This methodology has been implemented in a computer program currently in use within the company