Modified Equivalent Bilateral Exchange of transmission pricing using DIWO

Equivalent Bilateral Exchange method of transmission pricing works for pool structure of power markets. The nodal charges for pool customers are calculated by creating virtual exchanges applying proportionate sharing principle. This paper provides a proposal for modifying the existing method in order to accommodate the bilateral transactions. The charges for existing pool customers are developed in order to minimize the impact of bilateral transactions. This is accomplished by posing the problem of creating virtual exchanges as an optimization problem. The objective function is developed so that the charges after accommodating bilateral transactions are close to that without considering the same. Differential Invasive Weed Optimization (DIWO) technique has been used to obtain the solutions. The results on IEEE 30 bus system are presented.