Comparison of Transmission Cost Allocation Methods in a Multi-area Framework

Due to the growth of the electrical interconnection among countries, one of the main challenges is to establish the cost for transmission usage in a multi-area framework. Because each country has its own method to allocate transmission cost, the challenge can be even bigger. This work is addressed to compare different strategies to allocate transmission cost in a multi-area framework. As each country has its own method and the electrical information from one country are not available to others countries, the idea is to combine transmission cost allocation methods with equivalent system, which will represent a country (area). Results and analysis were performed with methods to allocate transmission cost and techniques to create the equivalent network, using the IEEE 24-bus system.