Transmission Pricing based on Voltage Angle Decomposition

In this paper a new approach for transmission pricing is presented. The main idea is voltage angle allocation, i.e. determining the contribution of each contract on the voltage angle of each bus. DC power flow is used to compute a primary solution for angle decomposition. To consider the impacts of system non-linearity on angle decomposition, the primary solution is corrected in different iterations of decoupled Newton-Raphson power flow. Then, the contribution of each contract on power flow of each transmission line is computed based on angle decomposition. Contract-related flows are used as a measure for “extent of use" of transmission network capacity and consequently transmission pricing. The presented approach is applied to a 4-bus test system and IEEE 30-bus test system.