Power flow control and its effect on flow-based transmission cost allocation

In a transmission system with HVDC lines or other power flow controlling devices, it is possible to control the active power flow in the lines and indirectly also in other parts of the system. The active control of the power flow through a grid can affect flow-based transmission cost allocation methods as they are based on the DC load flow model. This study investigates the effect of such power flow control on flow-based transmission cost allocation methods. Particularly, three cost allocation schemes: postage stamp, marginal participation and Aumann-Shapley, are compared in a transmission system with power flow control, using HVDC as power flow controlling device, and without power flow control. The results are presented for a 14 bus test system.