Wheeling Charge Based on Identification of Transaction Paths in Deregulated Power Markets

In this paper, the contract path method and MW-mile method that are classified into the embedded cost method are addressed, and a new practical wheeling charging that resolves the existing disadvantages is proposed by using the identification method of transaction paths. By applying the proposed method that reflects the use of transmission systems, the wheeling charge that gives the incentive for the efficient operation of power systems is achieved fulfilling the recovery of the invested cost. In order to verify the practicability of the above mentioned proposal method, several simulations have been conducted on the IEEE 30-bus test system.