A mathematical framework for the analysis and management of power transactions under open access

Several models are being considered by the power industry for competition under open access transmission. Each alternative offers a radically different solution which must be evaluated, not only in terms of economic benefits, but also in terms of impact on power system security. This paper therefore presents a general mathematical framework for the analysis and management of power transactions under open access subject to system security constraints. The framework introduces the notions of a virtual network of transactions and the transactions matrix, both describing virtual power flows among financial entities. Finally, this paper shows how the transactions selected by the market forces are influenced by the security requirements of the physical network