Transmission Pricing Using Accounting Rate of Return and MW-km Methods
Surender Reddy Salkuti

Surender Reddy Salkuti, Department of Railroad and Electrical Engineering, Woosong University, Daejeon, Republic of Korea.
Manuscript received on 30 June 2019 | Revised Manuscript received on 05 July 2019 | Manuscript published on 30 July 2019 | PP: 1462-1465 | Volume-8 Issue-9, July 2019 | Retrieval Number: I8104078919/19©BEIESP P | DOI: 10.35940/ijitee.I8104.078919
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Abstract: This paper presents a realistic and transparent approach to determine transmission cost for the transmission lines of a power system network by allocating the costs to all the participating generating units and load demands. There is a requirement for developing an appropriate transmission pricing mechanism which can give economic and technical information to the participants of the market, i.e., customers, generation and transmission companies. This paper proposes a methodology to allocate the cost of transmission in power system network. In this paper, accounting rate of return (ARR) and MW-km approaches have been used to evaluate the cost of transmission in the system. Simulation results are presented on standard IEEE 14 bus system.
Keywords: MW-km method, postage stamp method, power flow tracing, transmission cost, transmission losses.

Scope of the Article: Wireless Power Transmission