Joint Covering Congestion Rents in Multi-Area Power Systems Considering Loop Flow Effects

We consider the problem of how multiple areas should jointly cover congestion rents of internal and tie-lines in an interconnected power system. A key issue of our concern is the loop flow problem, which represents discrepancies between scheduled and actual power flow distributions because electric power does not always flow along the most direct paths of transactions. We employ generalized coordinated transaction scheduling (GCTS) for interchange scheduling, which can eliminate dispatch errors caused by loop flow effects and asymptotically converge to the joint economic dispatch (JED) under ideal assumptions. Subsequently, we propose approaches for each area to recover multipliers of the global GCTS model, as well as quantify and price its contribution to line congestions in a distributed manner. Thereby, all areas and interface bids can jointly cover congestion rents of internal and tie-lines with their merchandise surpluses and profits. Simulations demonstrate the effectiveness of the proposed approach of locational marginal prices (LMP) recovery and joint covering congestion rents.