Electricity markets: transmission prices methods

In the context of electricity markets, transmission pricing is an important tool to achieve an efficient operation of the electricity system. The electricity market is influenced by several factors; however the transmission network management is one of the most important aspects, because the network...

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Bibliographic Details
Main Author: Ferreira, Judite (author)
Other Authors: Vale, Zita (author), Morais, H. (author)
Format: bookPart
Language:eng
Published: 2013
Subjects:
Online Access:http://hdl.handle.net/10400.22/1647
Country:Portugal
Oai:oai:recipp.ipp.pt:10400.22/1647
Description
Summary:In the context of electricity markets, transmission pricing is an important tool to achieve an efficient operation of the electricity system. The electricity market is influenced by several factors; however the transmission network management is one of the most important aspects, because the network is a natural monopoly. The transmission tariffs can help to regulate the market, for this reason transmission tariffs must follow strict criteria. This paper presents the following methods to tariff the use of transmission networks by electricity market players: Post-Stamp Method; MW-Mile Method Distribution Factors Methods; Tracing Methodology; Bialek’s Tracing Method and Locational Marginal Price. A nine bus transmission network is used to illustrate the application of the tariff methods.