Optimization of cross-regional bilateral power transaction and analysis of transaction path

Cross-regional bilateral power transaction is an effective way to solve the problem of energy distribution imbalance among regions. The amount of power transaction, the price and the transaction path is valuable for signing a power transaction contract. The common method for practical use is based on the network flow approach which lacks the consideration of electrical property of power transaction. In this paper, a basic model that considers the electrical property with the objective of maximizing social welfare is introduced first. Then the basic model is elaborated into a synthesized model through considering the function of auxiliary adjustment and transmission cost. A practical method for settling power transaction path is also proposed. Finally, a case study based on IEEE 30 was performed to verify the applicability of the proposed model. Results show that auxiliary adjustment and the proposed model do have positive effects on promoting the cross-regional bilateral transaction of electrical power.