Congestion Cost and Risk Assessment Cost Evaluation in Transmission Pricing Wheeling

Alleviating transmission congestion is a complex task and can impose a barrier to the electricity trading. During congestion voltage security is one of the significant aspects. In this research paper, congestion cost evaluation has been made on the basis of fall of voltage due to heavy loading and components contingency (line, transformer etc). In case of contingency, quantification of risk made according to the severity of voltage deviations and attempted to quantify a risk index of voltage instability. The modified Amp method and MVA utility factors methods based approach are applying in congestion and risk assessment system. The proposed methods are tested on an IEEE 6 and IEEE 14 bus transmission network system. Allocation of congestion costs and risk assessment of respective wheeling transactions have been achieved. This research paper serves as an evaluation of the congestion and risk assessment methodology, which has been adopted and being practiced in the markets.