Assessment & Allocation of Transmission Losses & Costs under N-1 Contingency Condition

Abstract

Traditionally electricity supply industry (ESI) was monopolistic in nature with generation; transmission and distribution owned by government. Now in all over the world electricity market is restructured. All the three major areas i.e. generation, transmission and distribution are now working as separate companies namely Generating Companies (GENCO), Transmission Companies (TRANSCO) and Distribution Companies (DISCOMs). Under this environment the question of loss allocation is also very much important because no one want to bear this loss. Contingency conditions are normal practices in real power system and this brings transmission reliability margin into the picture. Further under contingency the value of losses in certain lines is increased due to extra flows in these lines. Hence transmission loss assessments, allocation and pricing with consideration of contingency are significant issues in restructured electricity market. Due to this reason a methodology for transmission loss assessment, allocation and pricing with consideration of N-1 contingent maximum flow condition has been developed. For finding contingent loss novel reliability factors is introduced. By using this factor optimal losses are calculated. After calculating these losses by using Bialek’s tracing these losses are allocated to generators and loads. After that by using MW-cost methodology transmission loss cost is allocated to the generators and demands. Sample 6 bus and IEEE 14 bus system are used for showing the feasibility of this method