Fixed cost allocation based on system marginal price
Fang Hou
Abstract
Fang Hou
Abstract
The idea of time duration allocation of transmission network fixed cost based on systemmarginal price is brought forward. According to the maximum daily system marginal price in a year,the annual transmission cost is allocated to each day. Then according to the hourly system marginal prices in a day,the daily cost is allocated to each hour with different load level,and the hourly fixed cost is allocated to each bus in terms of heat contribution or maximum active power usage. The system marginal price represents the system load situation and thus reflects the congestion status of transmission equipment in a certain extent. The system marginal price can be obtained without the optimal flow calculation,so there is no convergence problem and the cost revision is not necessary.
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The idea of time duration allocation of transmission network fixed cost based on systemmarginal price is brought forward. According to the maximum daily system marginal price in a year,the annual transmission cost is allocated to each day. Then according to the hourly system marginal prices in a day,the daily cost is allocated to each hour with different load level,and the hourly fixed cost is allocated to each bus in terms of heat contribution or maximum active power usage. The system marginal price represents the system load situation and thus reflects the congestion status of transmission equipment in a certain extent. The system marginal price can be obtained without the optimal flow calculation,so there is no convergence problem and the cost revision is not necessary.
Key concepts: Marginal cost, Fixed cost, Transmission (telecommunications), Convergence (economics), Economics, Total cost, Electric power system, Cost allocation