A framework for cost-based pricing of transmission and ancillary services in competitive electric power markets
- Massachusetts Inst. of Tech., Cambridge, MA (United States). Lab. for Electromagnetic and Electronic Systems
In this paper the authors propose a framework for accurate cost determination and pricing of transmission and ancillary services in competitive electric power markets. The proposed framework is based on their anticipation of the evolving environment and industry structure. They envision the future as a competitive energy market with a centralized control entity that coordinates system activities, prices transmission and ancillary services and controls various system resources. This control entity has control over a certain (pre-defined) geographical area. It is proposed that the system operation and control be kept as they are currently done in control centers, no major change in these functions is required for the proposed pricing strategy. The pricing strategy is divided into two main classes based on time scale separation and firmness, short and long term, firm and interruptible contracts. The approach is based on superposition of different transaction on the network, and a three-part tariff design. The charges are directly related to the impact of each transaction on the system.
- OSTI ID:
- 103765
- Report Number(s):
- CONF-950414--
- Country of Publication:
- United States
- Language:
- English
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