Optimal Spot Pricing Evaluation in Restructured Electrical Power System

Abstract

Electricity markets in both developed and developing countries have been considerably reorganized over the previous two decades. The unbundling of generation and transmission results in restructured electricity market which enhances the competition among the market traders in the regime of open access. Therefore, the transmission pricing methods should be skilled in translating transmission costs into tariffs to allow participation, which leads to profitable effectiveness, allows the grid owner to recover prices, and makes market participants aware of the system's supply defense and consistency maintained. This research intends to (1) examine the drivers behind power transmission pricing, (2) Create AC-DC OPF-based Nodal Pricing methodology, and (3) work out prices for India’s real transmission network to enable market participants to compete and make the best decisions. Finally, the study indicated that the planned methodology is more appropriate for rising nations to achieve the goals of building extensive energy markets.