Multi-step network segmentation using optimization and sequential participant migration

Power network segmentation has many applications in the operation of power systems. The context of segmentation changes with the application. With the introduction of competition and associated modes of transaction, network segmentation with reference to congestion became a necessity. This paper proposes a methodology to solve network segmentation problem in wholesale competition environment so that appropriate bid areas are formed. A two-step process is proposed. The first step involves optimization based clustering of nodes with LMP closeness as a decision metric. The second step involves fine tuning of results of the first step by bus migration process. The results have been obtained on data of IEEE 30 bus system as well as Western Regional Grid of India.