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Point of Connection Methodology for Sharing of Transmission Charges

Point of Connection Methodology for Sharing of Transmission Charges. Methodology adopted for Sharing of ISTS Charges. Hybrid Method ----A combination of Tracing and Marginal Participation methods. Tracing of Electricity. Based on a paper published by Bialek in 1996

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Point of Connection Methodology for Sharing of Transmission Charges

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  1. Point of Connection Methodology for Sharing of Transmission Charges

  2. Methodology adopted for Sharing of ISTS Charges • Hybrid Method ----A combination of Tracing and Marginal Participation methods

  3. Tracing of Electricity • Based on a paper published by Bialek in 1996 • Requires base case load flow • Uses concept of proportional flows • Attempts to identify which generators are supplying which loads

  4. Marginal Participation --- changes in line flows due to incremental 1 MW change in generation/load at a node is used to determine the participation of the node on the lines

  5. The Procedure • Solve Base case LF on basic network….truncated to 400 kv • Identification of responding buses-tracing • Increment 1 MW Marginal generation/Load at desired bus absorbed/generated by responding buses • Calculate line utilization factors • Allocate costs to nodes • Calculate poc rate/nodal prices

  6. The LF studies have been done using Power World Simulator evaluation/student edition

  7. P out Records: One MW Marginal drawal at Bus 2, Supplied by Generator at Bus 5 Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 TO 2 2 1 193.07 0 0.0 TO 3 3 1 60.21 0 0.0 TO 5 5 1 -73.28 0 0.0 BUS 2 2 400.0 MW LOAD 1 261.00 TO 1 1 1 -193.07 0 0.0 TO 4 4 1 -67.93 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.21 0 0.0 TO 5 5 1 -159.79 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.93 0 0.0 TO 5 5 1 -167.93 0 0.0 BUS 5 5 400.0 MW GENERATOR 401.00 TO 1 1 1 73.28 0 0.0 TO 3 3 1 159.79 0 0.0 TO 4 4 1 167.93 0 0.0 Pout Records Base Case Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 0.0 TO 2 2 1 192.62 0 0.0 TO 3 3 1 60.38 0 0.0 TO 5 5 1 -73.00 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -192.62 0 0.0 TO 4 4 1 -67.38 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.38 0 0.0 TO 5 5 1 -159.62 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.38 0 0.0 TO 5 5 1 -167.38 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.00 0.0 TO 1 1 1 73.00 0 0.0 TO 3 3 1 159.62 0 0.0 TO 4 4 1 167.38 0 0.0

  8. 192.62 MW 60.38 MW 73 MW Contribution of 180 MW generator on line 4= 60.38*180/(180+73)= 42.96 MW

  9. For a large system ----- • ......... It requires the solution of the [A] matrices.

  10. Pi = nodal power at node i = sum of injections = sum of withdrawals P1=253 P2=260 1-2=192.62 4-2=67.38 1-3=60.38 P4=167.38 P3=220 5-4=167.38 5-3=159.62 P5=400 5-1=73.00

  11. From “The Tracing of Electricity” J.Bialek, 1996 • Contribution of Generator k in line outflow in line i-l emanating from node i= |Pi-l|*[Au-1]ik*PGk/Pi [Au] ij = 1 if i=j -|Pj-i|/Pj if j belongs toset of nodes directly supplying to node i 0 otherwise

  12. From “The Tracing of Electricity” J.Bialek, 1996 • Contribution of Generator k to Load at node i= PLi*[Au-1]ik*PGk/Pi

  13. From “The Tracing of Electricity” J.Bialek, 1996 • Contribution of Load k in line inflow in line i-j into node i= |Pi-l|*[Ad-1]ik*PLk/Pi [Ad] ij = 1 if i=j -|Pj-i|/Pj if j belongs toset of nodes directly supplied from node i 0 otherwise

  14. Increase 1 MW load at Bus 2……… and as per result of tracing Generator 1 will respond with 53% that is 0.53 MW and Generator 2 will respond with 47% that is 0.47 MW

  15. Calculation of Seasonal Index & Marginal Participation Factors

  16. Seasonal index (for node i line l): Ue,i,l =(|Flei| - |Fle|).P ie |Flei| - |Fle| must be >0

  17. Pout Records Base Case Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 0.0 TO 2 2 1 192.62 0 0.0 TO 3 3 1 60.38 0 0.0 TO 5 5 1 -73.00 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -192.62 0 0.0 TO 4 4 1 -67.38 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.38 0 0.0 TO 5 5 1 -159.62 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.38 0 0.0 TO 5 5 1 -167.38 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.00 0.0 TO 1 1 1 73.00 0 0.0 TO 3 3 1 159.62 0 0.0 TO 4 4 1 167.38 0 0.0 Pout Records: Marginal 1 MW INCR at Bus 2 Bus Flows BUS 1 1 400.0 MW GENERATOR 180.53 0.0 TO 2 2 1 193.33 0 0.0 TO 3 3 1 60.31 0 0.0 TO 5 5 1 -73.11 0 0.0 BUS 2 2 400.0 MW LOAD 1 261.00 TO 1 1 1 -193.33 0 0.0 TO 4 4 1 -67.67 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.31 0 0.0 TO 5 5 1 -159.69 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.67 0 0.0 TO 5 5 1 -167.67 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.47 0.0 TO 1 1 1 73.11 0 0.0 TO 3 3 1 159.69 0 0.0 TO 4 4 1 167.67 0 0.0

  18. Seasonal Index for node 2 Seaslonal index for node 2 on line [1-2] = (193.33-192.62)*260

  19. Increase 1 MW load at Bus 1

  20. Pout Records Base Case Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 0.0 TO 2 2 1 192.62 0 0.0 TO 3 3 1 60.38 0 0.0 TO 5 5 1 -73.00 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -192.62 0 0.0 TO 4 4 1 -67.38 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.38 0 0.0 TO 5 5 1 -159.62 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.38 0 0.0 TO 5 5 1 -167.38 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.00 0.0 TO 1 1 1 73.00 0 0.0 TO 3 3 1 159.62 0 0.0 TO 4 4 1 167.38 0 0.0 Pout Records Bus 1 INCR 1 MW Bus Flows BUS 1 1 400.0 MW GENERATOR 181.00 0.0 TO 2 2 1 193.39 0 0.0 TO 3 3 1 60.54 0 0.0 TO 5 5 1 -72.93 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.76 TO 1 1 1 -193.39 0 0.0 TO 4 4 1 -67.37 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.24 TO 1 1 1 -60.54 0 0.0 TO 5 5 1 -159.70 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.37 0 0.0 TO 5 5 1 -167.37 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.00 0.0 TO 1 1 1 72.93 0 0.0 TO 3 3 1 159.70 0 0.0 TO 4 4 1 167.37 0 0.0

  21. Seasonal Index for node 1

  22. Increase 1 MW load at Bus 3

  23. Pout Records Base Case Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 0.0 TO 2 2 1 192.62 0 0.0 TO 3 3 1 60.38 0 0.0 TO 5 5 1 -73.00 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -192.62 0 0.0 TO 4 4 1 -67.38 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.38 0 0.0 TO 5 5 1 -159.62 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.38 0 0.0 TO 5 5 1 -167.38 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.00 0.0 TO 1 1 1 73.00 0 0.0 TO 3 3 1 159.62 0 0.0 TO 4 4 1 167.38 0 0.0 Pout Records: 1MW INCR in bus 3 (load) Bus Flows BUS 1 1 400.0 MW GENERATOR 1 180.20 0.0 TO 2 2 1 192.48 0 0.0 TO 3 3 1 60.81 0 0.0 TO 5 5 1 -73.09 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -192.48 0 0.0 TO 4 4 1 -67.52 0 0.0 BUS 3 3 400.0 MW LOAD 1 221.00 TO 1 1 1 -60.81 0 0.0 TO 5 5 1 -160.19 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.52 0 0.0 TO 5 5 1 -167.52 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.80 0.0 TO 1 1 1 73.09 0 0.0 TO 3 3 1 160.19 0 0.0 TO 4 4 1 167.52 0 0.0

  24. Seasonal Index for node 3

  25. Increase 1 MW load at Bus 4

  26. Pout Records Base Case Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 0.0 TO 2 2 1 192.62 0 0.0 TO 3 3 1 60.38 0 0.0 TO 5 5 1 -73.00 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -192.62 0 0.0 TO 4 4 1 -67.38 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.38 0 0.0 TO 5 5 1 -159.62 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.38 0 0.0 TO 5 5 1 -167.38 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.00 0.0 TO 1 1 1 73.00 0 0.0 TO 3 3 1 159.62 0 0.0 TO 4 4 1 167.38 0 0.0 Pout Records: 1MW INCR Bus 4 Bus Flows BUS 1 1 400.0 MW GENERATOR 1 180.00 0.0 TO 2 2 1 193.01 0 0.0 TO 3 3 1 60.23 0 0.0 TO 5 5 1 -73.24 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -193.01 0 0.0 TO 4 4 1 -66.99 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.23 0 0.0 TO 5 5 1 -159.77 0 0.0 BUS 4 4 400.0 MW LOAD 1 101.00 TO 2 2 1 66.99 0 0.0 TO 5 5 1 -167.99 0 0.0 BUS 5 5 400.0 MW GENERATOR 1 401.00 0.0 TO 1 1 1 73.24 0 0.0 TO 3 3 1 159.77 0 0.0 TO 4 4 1 167.99 0 0.0

  27. Seasonal Index for node 4

  28. Increase 1 MW load at Bus 5

  29. Pout Records Base Case Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 0.0 TO 2 2 1 192.62 0 0.0 TO 3 3 1 60.38 0 0.0 TO 5 5 1 -73.00 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.00 TO 1 1 1 -192.62 0 0.0 TO 4 4 1 -67.38 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.00 TO 1 1 1 -60.38 0 0.0 TO 5 5 1 -159.62 0 0.0 BUS 4 4 400.0 MW LOAD 1 100.00 TO 2 2 1 67.38 0 0.0 TO 5 5 1 -167.38 0 0.0 BUS 5 5 400.0 MW GENERATOR 400.00 0.0 TO 1 1 1 73.00 0 0.0 TO 3 3 1 159.62 0 0.0 TO 4 4 1 167.38 0 0.0 Pout Records: bus 5 INCR 1MW Bus Flows BUS 1 1 400.0 MW GENERATOR 180.00 0.0 TO 2 2 1 192.75 0 0.0 TO 3 3 1 60.46 0 0.0 TO 5 5 1 -73.22 0 0.0 BUS 2 2 400.0 MW LOAD 1 260.31 TO 1 1 1 -192.75 0 0.0 TO 4 4 1 -67.56 0 0.0 BUS 3 3 400.0 MW LOAD 1 220.44 TO 1 1 1 -60.46 0 0.0 TO 5 5 1 -159.98 0 0.0 BUS 4 4 400.0 MW 1 LOAD 1 100.25 TO 2 2 1 67.56 0 0.0 TO 5 5 1 -167.81 0 0.0 BUS 5 5 400.0 MW 1 GENERATOR 401.00 0.0 TO 1 1 1 73.22 0 0.0 TO 3 3 1 159.98 0 0.0 TO 4 4 1 167.81 0 0.0

  30. Seasonal Index for node 5

  31. Marginal Participation Factor( of node i in line l): Ueil / ∑i Ueil

  32. Zone A

  33. Calculation of Uniform Charges = Total Transmission Charges/(Sum of approved Injection+Sum of approved Withdrawal) =803/(400+180+220+260+100) =69.22 lakhs/MW For bus 1 =(69.22*180)=125 Cr For bus 2=(69.22*260) =180 Cr For bus 3=(69.22*220) =152 Cr For bus 4=(69.22*100) = 69 Cr For bus 5=(69.22*400) =277 Cr

  34. Cost allocation to nodes based on marginal participation

  35. Generator shares

  36. Charges to be paid = own drawal*drawal PoC of node+share*generator capacity*injection PoC of generator bus (Figures in brackets are based on MP-Trace only)

  37. Present Issues

  38. There is no internationally adopted best common method for allocation of transmission costs….. All methods have their pros & cons • Worldwide a combination of methods is used for allocation such as postage stamp, marginal/nodal pricing, marginal participation, average participation, MW-Mile, peak based, game theory etc • Requires not only technical expertise but also Econimics concepts such as marginal price, social welfare, etc

  39. While postage stamp method is the most easiest to understand, it does not capture the congestion costs. • While marginal participation has some degree of technical backing it is complex to understand and implement • Selection of slack bus/responding nodes in marginal participation is a contentious issue.

  40. While we are rightly concerned with congestion. What if there is over capacity/stranded assets in a corridor? What if the constructed lines remain lightly loaded for most part of the year due to error in planning or change in load generation scenario over time? What is the limit of reliability costs?

  41. In Flow based methods the base case load generation is very important….. More so when the tariff of assets vary widely • 50 % Uniform charges distort the locational signals • Slabbing further distorts the results of marginal participation

  42. Whether a generator/supplier or Load/Consumer is to be penalized for its geographical location? -----generation zones are predetermined based on availability of resources ----load zones/industrial belts are also result of historical development, resource availability • Whether generator or Consumer be penalized due to asymmetries in transmission network created during historical development of ISTS ?

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