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Some competitive power markets use marginal spot prices to assess energy transactions and to pay transmission service. The transmission revenue caused by network constraints under nodal marginal pricing is equal to network investment costs in ideal systems. However, in actual systems, marginal revenue is lower than network investment costs and complementary expansion charges should be paid by market...
A new decomposition method is presented that includes the network through ac modeling within the hydrothermal scheduling optimization process including the losses. In short-term hydrothermal scheduling, the transmission network is typically modeled with dc power flow techniques. Such modeling, however, can lead to impractical solutions when it is verified with ac power flow. Another proposal considers...
A new challenge in electric energy industry, especially in Latin American countries, is to increase interconnections between systems and introduce competition between neighboring markets. One regulatory point to be considered is to choose an appropriate methodology to allocate transmission interconnection costs among market participants. In this work, economic benefit, postage stamp, influence areas...
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