Calculating transmission cost in competitive electricity markets for Binh Dinh power transmission networks
Abstract
In the competitive electricity market, the transmission network plays a central role although transmission costs only account for a fraction in the total cost of the power sector. Having a transmission costing system that is efficient and consistent with all market structures in different places is very difficult. Many methods for calculating transmission cost have been investigated, in which the marginal participation method has several distinct advantages such as fast calculation speed, simplicity, fairness for customers and the use of transmission charges in the EU, India, Brasil, Combia, … This paper studies on the application of marginal participation method in determining the transmission cost for Binh Dinh power transmission networks to ensure full charge and fairness for both buyers and sellers in the competitive electricity market.