Penalization for Unscheduled Interchange based on Availability Based Tariff in Competitive Electricity Market

Abstract

This paper presents a technique for the penalization of unscheduled interchange within deregulated power sector, it derives its features from a successful frequency linked tariff scheme operational in India and known by the name of Availability Based Tariff (ABT). In this paper, combined model consisting of the pool, bilateral and multilateral transaction of deregulated power sector has been considered, the power market is mostly scheduled for 15 min, one or half an hour in competitive electricity market. This schedule has been decided 24 h ahead of real market but it has been observed that some of the market participants are not able to fulfil their commitments regarding either supply of scheduled generation or withdrawal of scheduled load from the pool. Similarly, the transactions may not be able to transfer committed power. Due to these reasons, the power system deviates from the optimized solutions. So there is an urgent need to device a suitable logical technique to penalize such market participants. In this paper, frequency based technique has been proposed for penalization of such market participants in competitive electricity market. The proposed technique has been applied to modified IEEE-30 bus test system comprising of three sections on the basis of prevailing frequency in these regions due to unscheduled interchange occurring in the system.

Keywords: frequency based tariff, deregulated power sector, availability based tariff, independent system operator, unscheduled interchange, competitive electricity market, central electricity regulatory commission, Indian electricity grid code