An efficient distribution factors enhanced transmission pricing method for Australian NEM transmission charging scheme

N. H. Radzi; R. C. Bansal; Z. Y. Dong; M. Y. Hassan; K. P. Wong

doi:10.1016/j.renene.2012.12.013

An efficient distribution factors enhanced transmission pricing method for Australian NEM transmission charging scheme

N. H. Radzi
, R. C. Bansal
, Z. Y. Dong
, M. Y. Hassan
, K. P. Wong

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

13 Citations (Scopus)

Abstract

The implementation of the Carbon Pollution Reduction Scheme (CPRS) and the expanded Renewable Energy Target (RET) which drive to a smart grid application are likely to have a significant and ongoing impact on energy markets in Australia. One of the key issues is the transmission pricing scheme. The main task in the development of the transmission service charges are it must be non-discriminatory, transparent, economically efficient, and allow full recovery of costs. Most importantly, the pricing strategies should implement fairness and practicality. Currently, the National Electricity Market (NEM) has been using the Cost Reflective Network Pricing (CRNP) and Modified Cost Reflective Network Pricing (MCNRP) method for allocating the transmission service charges among the load. The drawbacks of both methods are: (1) the load will be burdened with high TUoS charges as this charges are only paid by load (2) inaccurate transmission usage evaluation as the contributions of counter-flows are totally being neglected. Therefore, in this paper, a novel transmission pricing method which is called Distribution Factors Enhanced Transmission Pricing (DFETP) method is introduced in order to increase the utilization efficiency of the network as well as to promote the green technology in a market environment. The proposed approach is tested on the 10-machine IEEE 39-bus (New-England) system and 59-bus system of the South East Australian power system using Matlab simulation program to prove its effectiveness. © 2012 Elsevier Ltd.

Original language	English
Pages (from-to)	319-328
Journal	Renewable Energy
Volume	53
DOIs	https://doi.org/10.1016/j.renene.2012.12.013
Publication status	Published - May 2013
Externally published	Yes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Research Keywords

Deregulation
Justified distribution factor
Local load case
MW-mile method
Postage-stamp coverage method and transmission services

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title = "An efficient distribution factors enhanced transmission pricing method for Australian NEM transmission charging scheme",

abstract = "The implementation of the Carbon Pollution Reduction Scheme (CPRS) and the expanded Renewable Energy Target (RET) which drive to a smart grid application are likely to have a significant and ongoing impact on energy markets in Australia. One of the key issues is the transmission pricing scheme. The main task in the development of the transmission service charges are it must be non-discriminatory, transparent, economically efficient, and allow full recovery of costs. Most importantly, the pricing strategies should implement fairness and practicality. Currently, the National Electricity Market (NEM) has been using the Cost Reflective Network Pricing (CRNP) and Modified Cost Reflective Network Pricing (MCNRP) method for allocating the transmission service charges among the load. The drawbacks of both methods are: (1) the load will be burdened with high TUoS charges as this charges are only paid by load (2) inaccurate transmission usage evaluation as the contributions of counter-flows are totally being neglected. Therefore, in this paper, a novel transmission pricing method which is called Distribution Factors Enhanced Transmission Pricing (DFETP) method is introduced in order to increase the utilization efficiency of the network as well as to promote the green technology in a market environment. The proposed approach is tested on the 10-machine IEEE 39-bus (New-England) system and 59-bus system of the South East Australian power system using Matlab simulation program to prove its effectiveness. {\textcopyright} 2012 Elsevier Ltd.",

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TY - JOUR

T1 - An efficient distribution factors enhanced transmission pricing method for Australian NEM transmission charging scheme

AU - Radzi, N. H.

AU - Bansal, R. C.

AU - Dong, Z. Y.

AU - Hassan, M. Y.

AU - Wong, K. P.

N1 - Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

PY - 2013/5

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N2 - The implementation of the Carbon Pollution Reduction Scheme (CPRS) and the expanded Renewable Energy Target (RET) which drive to a smart grid application are likely to have a significant and ongoing impact on energy markets in Australia. One of the key issues is the transmission pricing scheme. The main task in the development of the transmission service charges are it must be non-discriminatory, transparent, economically efficient, and allow full recovery of costs. Most importantly, the pricing strategies should implement fairness and practicality. Currently, the National Electricity Market (NEM) has been using the Cost Reflective Network Pricing (CRNP) and Modified Cost Reflective Network Pricing (MCNRP) method for allocating the transmission service charges among the load. The drawbacks of both methods are: (1) the load will be burdened with high TUoS charges as this charges are only paid by load (2) inaccurate transmission usage evaluation as the contributions of counter-flows are totally being neglected. Therefore, in this paper, a novel transmission pricing method which is called Distribution Factors Enhanced Transmission Pricing (DFETP) method is introduced in order to increase the utilization efficiency of the network as well as to promote the green technology in a market environment. The proposed approach is tested on the 10-machine IEEE 39-bus (New-England) system and 59-bus system of the South East Australian power system using Matlab simulation program to prove its effectiveness. © 2012 Elsevier Ltd.

AB - The implementation of the Carbon Pollution Reduction Scheme (CPRS) and the expanded Renewable Energy Target (RET) which drive to a smart grid application are likely to have a significant and ongoing impact on energy markets in Australia. One of the key issues is the transmission pricing scheme. The main task in the development of the transmission service charges are it must be non-discriminatory, transparent, economically efficient, and allow full recovery of costs. Most importantly, the pricing strategies should implement fairness and practicality. Currently, the National Electricity Market (NEM) has been using the Cost Reflective Network Pricing (CRNP) and Modified Cost Reflective Network Pricing (MCNRP) method for allocating the transmission service charges among the load. The drawbacks of both methods are: (1) the load will be burdened with high TUoS charges as this charges are only paid by load (2) inaccurate transmission usage evaluation as the contributions of counter-flows are totally being neglected. Therefore, in this paper, a novel transmission pricing method which is called Distribution Factors Enhanced Transmission Pricing (DFETP) method is introduced in order to increase the utilization efficiency of the network as well as to promote the green technology in a market environment. The proposed approach is tested on the 10-machine IEEE 39-bus (New-England) system and 59-bus system of the South East Australian power system using Matlab simulation program to prove its effectiveness. © 2012 Elsevier Ltd.

KW - Deregulation

KW - Justified distribution factor

KW - Local load case

KW - MW-mile method

KW - Postage-stamp coverage method and transmission services

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U2 - 10.1016/j.renene.2012.12.013

DO - 10.1016/j.renene.2012.12.013

M3 - RGC 21 - Publication in refereed journal

SN - 0960-1481

VL - 53

SP - 319

EP - 328

JO - Renewable Energy

JF - Renewable Energy

ER -

An efficient distribution factors enhanced transmission pricing method for Australian NEM transmission charging scheme

Abstract

Bibliographical note

UN SDGs

Research Keywords

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