Area and economic participation factor calculation of GENCOs in a multi area competitive power system

Deregulation creates competitive market with GENCOs and DISCOs as the market players. The GENCO offers and DISCO bids are submitted to market operator who clears the market with the aim to maximize social welfare. The power trading is done in an open access between in-merit GENCOs and DISCO. The allotted power demand of each in-merit DISCO is met by in-merit GENCOs that generates contracted power. Thus, GENCOs share a portion of the power demand of each DISCO. The contribution of each GENCO to meet power demand of a DISCO is represented in terms of area participation matrix. During contract violation, willing GENCOs shares the un-contracted power demand based on economic participation factor. Thus, GENCOs generate the contracted (during contracted condition) and un-contracted power (during violation) based on area participation factors and economic participation factors respectively. This is achieved with the help of automatic generation control. This paper assumes a two area system with different market conditions and develops a generalized mathematical expression to calculate these factors based on the allotted in-merit GENCO power and available willing GENCO power. These factors are then incorporated in the mathematical model of two area system under deregulated environment. The performance of the developed model is tested under tie line bias control strategy to check whether the GENCOs and TRANSCO power is based on the participation factors.