Joint Covering Congestion Rents in Multi-area Power Systems Considering Loop Flow Effects

TL;DR

This paper proposes a distributed approach using generalized coordinated transaction scheduling to accurately cover congestion rents in multi-area power systems, effectively addressing loop flow effects and improving economic dispatch.

Contribution

It introduces a novel distributed algorithm for joint congestion rent coverage considering loop flow effects, enhancing coordination among interconnected power system areas.

Findings

Effective LMP recovery demonstrated in simulations

Distributed algorithms successfully recover multipliers and quantify contributions

Approach improves congestion rent coverage accuracy

Abstract

We consider the problem of how multiple areas should jointly cover congestion rents of internal and tie-lines in an interconnected power system. A key issue of our concern is the loop flow problem, which represents discrepancies between scheduled and actual power flow distributions because electric power does not always flow along the most direct paths of transactions. We employ generalized coordinated transaction scheduling (GCTS) for interchange scheduling, which can eliminate dispatch errors caused by loop flow effects and asymptotically converge to the joint economic dispatch (JED) under ideal assumptions. Subsequently, distributed algorithms are proposed for each area to recover multipliers of the global GCTS model, as well as quantifying and pricing its contribution to line congestions. Thereby, all areas and interface bids can jointly cover congestion rents of internal and tie-lines with their merchandise surpluses and profits. Simulations demonstrate the effectiveness of the proposed approach of LMP recovery and joint covering congestion rents.