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Contents
Restructuring Power sector
Conclusions
References
Earlier Scenario
Vertically integrated system Government monopoly Lack of competition- making market inefficient non-payment, theft, overstaffing
Reforms
Privatizing generation
Not attracted investment Finally unbundling all sectors
Transmission Owners Disco Genco
Customer
Unbundling of Utilities
Benefits Introduced competition Lower tariffs Power Transactions based on Price rather than Cost Quality improved Revenue increased
Functions of PX
Receive bids from producer and customers Match bids and decide market clearing price Provides schedules to ISO Adjust scheduling when system congested
Functions of ISO
Security maintenance
Assure service quality Promote economic efficiency and equity
network;
Establish a price structure which is economically sound,
administer;
Provide pricing stability over time;
Deriving
D
Two Busbar Network with demand D
Assumptions:
The circuit Lf connecting busbars 1 and 2 is rated at 45 MW and costs 31293400 at its modern equivalent asset value. Discount rate of 6.9% and a load growth rate of 1%
X 104
1.8
1.5 1.2 0.9 0.6 0.3 0
20
40
% Utilization
60
80
100
Conclusions
LRIC Pricing
does not need to assume the size and siting of future
generation or demand.
is based on forward-looking costs. reflects the extent of the network used . reflects the degree of component utilization.
References:
1.
Furong Li, Chenghong Gu, Long-Run Incremental Cost Pricing for Negative Growth Rates, IEEE Transactions on Power Systems, Article in Press. Chenghong Gu, Furong Li, Lihong Gu , "Application of long-run network charging to large scale systems",2010 7th International Conference on the European pp.15,2010.
2.
3.
Loi Lai Lei Power System Restructuring and Deregulation, (Edited), John WileySons Limited, 2001. D. Shirmoharnmadi, X.V. Filho, B. Gorenstin et al., "Some fundamental, technical concepts about cost based transmission pricing , IEEE Transactions on
4.
F. Li, and D. L. Tolley, "Long-Run Incremental Cost Pricing Based on Unused Capacity," Power Systems, IEEE Transactions on Power Systems, vol. 22, no.4, pp. 1683-1689, 2007.
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