Optimization approach to real power tracing: An application to transmission fixed cost allocation

Megawatt (MW) power flow tracing can assess the extent of network usage by the participants that can be effectively used for multiple objectives like transmission pricing, loss allocation, etc. MW power tracing, a post-facto analysis of power flow solution, is amenable to multiple solutions. This implies multiplicity of solution space of transmission cost and loss allocation problems. The conventional tracing methods enforce a "proportionate sharing rule" to calculate the shares. These shares are sensitive to quantity and distance as against the postage stamp method, which is immune to distance. Any of these methods will result in penalizing a set of constituents, which raises a fairness issue. This is evident from the experiences of developing countries like India. In this paper, a new paradigm is suggested that at-tempts to capture the best of the two methodologies by exploring multiplicity of the solution space of the tracing problem, within the given constraints. We show that the tracing problem can be formulated as a linear constrained optimization problem. We propose a tracing compliant modified postage stamp allocation method that computes a traceable solution that minimizes overall deviation from the postage stamp allocation. Results on actual data of central transmission utility of Western Regional Grid of India demonstrate the claims.