Selection and application of the methodology of cost allocation of electric power transmission in the Venezuelan interconnected system

Abstract

This paper has as main objective to present a methodology to determine the costs associated to power transmission and its adequate remuneration, under a criterion of efficiency, for the Venezuelan electric power system. A proposed model establishes incomes by the daily sales of energy, bilateral contracts and congestion, and it was evaluated for a six node test system and the Venezuelan national interconnected system. The suggested methodology, a schema of tariff rates in two parts in a neighborhood where coexist the spot market and long-term contracts with transmission rights of type FTR, seems to give consistent results, adjusted to the requirements of income of the transmission company. The suggested methodology is simple and represents an easy implementation with the adequate tools. In spite of the proposed model, which complies with the suggested guidelines and fits the requirements of the Venezuelan law for the electrical service, efforts in results with this methodology for Venezuelan NES must keep being carried out, using better quality information. This must be performed in order to have greater certainty, or not, of its good functioning, since, the power wholesale market in Venezuela have not been given many advances and the application of LOSE is frozen, there is not a point of comparison nowadays