A new transmission pricing methodology for Indian restructured market using PSS/E software

Power industry is moving rapidly from regulated conventional setup to a deregulated environment. Deregulation is a new paradigm in the electric power industry. In deregulated environment, the pricing of the use of transmission system, which is satisfactorily allocated among the involved parties, has become one of the major issues. Transmission pricing must be non-discriminatory, transparent, economically efficient, and allow full recovery of costs. In this paper, the Marginal Participation (MP) method is proposed to calculate transmission price for the transacted power using PSS/E and MATLAB environment and the results are compared with the MW-Mile method. Based on the review of Indian system, MP method defines usage of each network branch in terms of the increment in power flows on that network branch if the generation / demand were to marginally increase. Transmission charges determined using MP method is found to be most appropriate since it directly computes the relative use of each network branch. The methods discussed have been successfully tested on sample 6 bus, IEEE 30 bus and TNEB 69 bus systems using MATLAB and PSS/E.