Economical assessment of transmission congestion relieving technique for bilateral electricity transaction

Abstract

This paper quantitatively evaluated the performance and characteristics of three kinds of congestion relieving technique (TLR, ranking method and CC method) from the viewpoint of social welfare and congestion charge. The results confirmed that the CC method attains comparatively high social welfare as well as economic fairness in both the simple three-bus system and the IEEJ EAST 10-machine system. Administrative relieving methods might achieve congestion relief with higher social welfare than CC, however, the economic impacts imposed on market participant are unequal. That is, it is difficult to secure economic fairness by administrative methods. Furthermore, numerical studies revealed a negative correlation between total congestion costs and social welfare