New approach for determination of the energy and connection cost at the power grid nodes

Unbundling of electricity industry to generation, transmission and distribution as the results of power system restructuring scheme introduced new economical-technical analysis methods for optimal portfolio in the industry. While determination of generation cost can be found by the related cost easily, accurate transmission charges determination is not a straight forward and simple procedure since relates to the path of electricity flow in the network. In this paper, using the help of the tracing flow method, the participation factors of each generator and line to supply a load has been determined. By using this factor and economical data of generating units and transmission lines I the cost of electricity consumption at each node has been determined. Application of the method for determination of connection cost of the new loads while considering dispatching limits, i.e., contingency, congestion, transmission limits, is another part of the paper. At the end part of the paper, the method is applied in a typical network and shows good accuracy and applicability.