Estimation of Power-Pooling Benefits from Production Simulations

This paper presents a procedure for using a number of production simulations to estimate power-pooling benefits. The method can be applied to a power system including any number of interconnected areas. By analyzing the production simulations for the individual areas operated first in isolation and then in a pool dispatch, estimates of economy interchange and operating benefits versus, tie-line capacities can be obtained. Furthermore, one can also estimate the economy interchange versus the difference between an area´s incremental cost and the pool´s incremental cost. This information is useful to discount the operating benefits due to transmission losses. The method has been implemented in a computer program called POLCA and its application to a realistic sample system is described in the paper.