A comparative study on transmission network cost allocation methodologies

In the deregulated electricity market, it has become very important to determine the complete information about the participants who are utilizing the transmission network. Transmission line usage computation requires information of generator to load contributions and the path used by various generators to meet loads and losses. In the present restructured electricity market, it is necessary to develop appropriate pricing techniques that can provide the useful economic information to market participants. In this paper, the three existing techniques namely Z
_bus
method, Z
_bus
^avg
method and Relative Electrical Distance (RED) method for the network cost allocation is compared. It has been successfully applied on an IEEE 24 bus-Reliability Test System (RTS) and the results obtained are compared. The results obtained are quite encouraging and useful for the deregulated electricity market related issues. The simulation is carried out using MATLAB 7.8.0 (R 2009a).