Deregulation of Electricity Market Through Power Exchange Trading Hub Design with Genetic Algorithm Application

In deregulated electricity markets, transactions take place between suppliers and buyers located at different nodes of the network. The electrical network connecting such transacting nodes may form complex paths between nodes with intermediate nodes and parallel paths. This paper attempts to map the complex meshed electrical network to radial network equivalents to mirror the transactions by the use of genetic algorithms and further envisage a power exchange mechanism, which would provide a common platform for buyers and sellers of electricity to strike trading deals on a real-time basis. However, the equivalents obtained, retain the properties and characteristic properties of the original network while offering a convenient method of tracking market transactions to allocate costs, losses and responsibilities. Applications to the allocation and reduction of losses, reactive power are shown. An improved distribution system infrastructure along with innovative practices can not only reduce losses but also make the system, free of avoidable instabilities.