Congestion management for multi area deregulated power system using price area concept

Congestion management is controlling the power flow in transmission line within the steady state stability limit. In deregulated power system, both economics and system security should be considered while managing the transmission line congestion. Price area congestion management technique is the one that not only relieves transmission line congestion but also provides maximum benefit to the stakeholders. The price area concept adopts different pricing for each area rather than fixing same price for all the areas. Different area pricing without congestion is achieved by increasing the price in deficit area and decreasing the price in surplus area. In this paper, control strategy based on price area congestion management for a three area system is developed. The control strategy is tested on a three area system operating in all possible combinations of contract. The test results prove that the control strategy based on price area concept relieves congestion without affecting the net surplus of the generation and distribution companies.