A new transmission cost allocation method considering power flow duration time in Smart Grid

The efficiency of asset utilization is one of the core contents of Smart Grid. This paper proposes the line Power Flow Duration Curve (PFDC) as a tool in the process of transmission cost allocation. The impact of the power flow duration time on the transmission asset utilization can be taken into account effectively. An implementation mechanism is designed. The case studies based on the IEEE 30-bus and 118-bus system demonstrate that the transmission cost can be allocated much more reasonably by the proposed method.