Implementation of Real Time Pricing in Deregulated Power Sector

Abstract

This paper proposes an approach for implementation of Real Time Pricing in deregulated power sector. In this paper, combined model consisting of the pool, bilateral and multilateral transaction of deregulated power sector has been considered. In deregulated power sector, power schedule is decided 24 h ahead of real market but some of the market participants are diverted from their commitments regarding either supply of scheduled generation or withdrawal of scheduled demand from the pool. Due to these reasons, the power system deviates from the optimized solutions. So there is an urgent need for implementation of real time pricing for unscheduled interchange revenue paid by such defaulter market participants. In this paper, frequency based technique has been implemented for determination of unscheduled interchange revenue paid by such defaulter market participants. The whole transmission system has been divided into three sections; prevailing frequency in these regions can be assumed due to unscheduled interchange occurring in the system. In this paper, real time pricing has been implementation to generalized deregulated model.

Keywords: Availability based Tariff, Deregulated Power Sector, Independent System Operator, Unscheduled Interchange, Central Electricity Regulatory Commission, Locational Marginal Price