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Assessment of the Norwegian transmission pricing rules by using a modified AC-OPF

Stamtsis, Georgios C.; Bjørndal, Mette; Erlich, István; Jörnsten, Kurt
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URI
http://hdl.handle.net/11250/163661
Date
2004
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  • Discussion papers (FOR) [556]
Abstract
This paper focuses on the combined effects of loss factors and zonal pricing in a system that takes as a starting point the procedures of transmission pricing in the Norwegian power system. It interprets the notion of loss factors in an AC power flow model, and develops a method for finding zonal prices consistent with a restricted AC optimal power flow. The effects of decomposing the nodal prices to find a loss factor to cover the marginal cost of losses, and letting the congestion management be resolved by zonal prices based on a DC approximation of the flows, are evaluated by comparing the resulting net prices to those of an optimal AC power flow (ACOPF).
Publisher
Norwegian School of Economics and Business Administration. Department of Finance and Management Science
Series
Discussion paper
2004:8

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