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The power network has been deregulated over the past years. In this regards, pricing of transmission services was always considered as one of the most complex issues and drew most of researchers’ interests. The significant impact of this subject in the transmission network pricing is the increase of free capacity of transmission lines. So, Economic efficiency is the greatest attribute which can be obtained only through deregulated power market.
Many studies have been done in transmission service costs. General concepts of transmission service cost and a comprehensive framework of the transmission grids in restructuring systems were examined (Perez, 1995; Yu & David, 1997; Araneda, 2002; Ahiakwor, Chukwu, & Dike, 2008; Seshadri, 2008; Zima, Matevosyan, Zima, & Soder, 2009; Luis & Perez, 2009; Pablo, Ramirez, Carlos, & Coello, 2009). Wakefield (1997) introduces a general framework that deals with transmission service costs.
This framework is defined in three stages:
- 1.
Defining transmission services
- 2.
Determining the costs of transmission services
- 3.
Calculating the transmission costs.
Adverse impacts of poor transmission pricing methods on transmission grids has been studied by Analysis Group (2001), which gives a through information related to the impact of traditional pricing methods in the new electricity market structure. Methods of transmission network pricing based on the trades have been mentioned in recent years. The real power flow in a transmission network in order to calculate the transmission service costs is presented by Pantos, Grgic, and Gubina (2003). Assessing the pricing methods and doing relative comparison among different methods of transmission services was studied. Some studies have been investigated the optimization of transmission service costs. For instance, an optimal pricing method is proposed by Farmer, Perera, and Cory (1995) in which the optimal pricing is determined by overall profit optimization algorithm. Total benefit is the operation cost of network capacity. In this study, the mathematical programming method is used to program the proposed method. Besides, a new method to evaluate the set of optimal prices that must be paid by transmission services was suggested by Perera, Farmer, and Cory (1996).