Electricity pricing algorithm based on resource type and nodal approach

Abstract

The aim of the electrical system operators is to ensure that energy is delivered to the consumer in good quality and without interruption. The main purpose of the electricity market operators is to provide the electricity to the end user as adequate, continuous and low cost. Demand for energy in the world is constantly increasing due to technological developments, increasing world population and welfare of people. The lower cost of electricity will lead to a higher quality of life and a more competitive condition in the industry [1-3]. For this reason, the cost of electricity is very important for everyone. While revealing the price of electricity, many different data are taken into account. These are generation, transmission and distribution costs. Generation costs include such as initial investment, operation, and supply costs. Depending on the source used, electric energy can be generated at very different costs. Transmission costs include investment and operation costs of substation centers and transmission lines used in the transmission system. Distribution costs are the operation and investment of the distribution system and the expenditures of some ancillary services delivered to the end user. Electricity prices are offered to end users with specific tariffs. However, these tariffs are disadvantageous for some users. Because, in the calculations made, the type of production source or the geographical location of the plant are not considered [4]. Therefore; for both producers and consumers, it is thought that these calculations can be made in a more acceptable way, taking into account the location of the source of production in the system and the interconnected system.

Keywords

• Electricity pricing algorithms,Nodal pricing,Regional pricing,Source types,Multi stage dynamic,Programming

References

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