Practical implementation of congestion cluster pricing method

The paper describes a practical approach to implementing the congestion cluster pricing method as a viable congestion management system (CMS) in the operation of electric power systems. The congestion cluster pricing method is formulated as a stochastic optimization problem of the cluster design. In the formulation the performance of the pricing method is introduced as a measurable function of cluster design, based on the conceptual criteria necessary for an effective CMS. We define the search space from which a particular design may be selected. Following the formulation the stochastic elements to the optimization problem are discussed by developing suitable representation of various uncertainties in the system. It is shown that the complexity of the problem leads to the search based methods as the preferred option for solving for the optimal cluster design. Finally, some reasonable approximations are suggested to solving the problem thus making it a practical approach to implementing the congestion cluster pricing method. A numerical example is given to illustrate the proposition.