Developing a Computer-Based Transmission-Pricing Model for Power Market Operation Teaching

Abstract

Given the worldwide concerns of deregulation in the electricity supply industry the introduction of an undergraduate/postgraduate course on electricity market operation is both timely and important, and new teaching materials must be designed. One key issue underlying power market operation is the determination of wheeling rates. An appropriate approach to setting wheeling rates is probably the most important vehicle for encouraging both optimal use of the existing transmission capacity and investment in future expansion of transmission facilities. This paper presents the development of a computer-based model that helps students appreciate the concepts of marginal wheeling costs evaluation for different types of power transactions in a multi-area interconnected power system.