Energy transaction scheduling with network constraints and transmission losses

This paper presents a new approach to study the energy transaction scheduling for market-based operation using network flow programming (NFP). The proposed model includes network constraints and transmission losses. In the old paradigm, most of the schedules considered bilateral contracts. Research work showed that a multilateral contract is needed for efficient market operation. In this study, the proposed method is based on the premise that there are no firm contracts in the energy transaction system. Every contract in the energy transaction system is considered as a multilateral contract. An independent system operator (ISO) is assumed to be the broker. The broker maximises the number of transactions subject to power flow equations, buying and selling contracts and network constraints. This leads to a problem of network flow programming (NFP) with upper and lower limits. So a special solution in NFP "out-of-kilter algorithm" (OKA) is employed. A test example of IEEE 30 bus system is presented for the proposed model and method.