Transmission cost allocation method based on Least MW-Mike Value

Transmission cost should be fairly allocated to network users so that a safe and economic operation of the network will be effectively stimulated. However, the development of distributed generation and combined cold, heat and power system are putting forward some new challenges on transmission cost allocation problem. One of the most important and difficult problems in transmission cost allocation is source-sink-analysis problem, in other words, network use evaluation, power flow tracing, power flow separation, or electrical dissection. Each of the currently widely used or discussed source-sink analysis method uses a kind of assumption or simplification when deciding the source of loads or the sink of generators, which makes it only suitable for some certain cases. In this paper, a source-sink analysis method based on least cost is developed, which has encompassed both the electrical distances between generator and load pairs and generation cost. Then, the developed method is compared with power flow tracing method and GGDF method by a simple example system. The result shows the rationality of the developed method in transmission cost allocation.