lecture 7 Power, Transmission_v.2

In one week by creating congestion on path 26 which

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Unformatted text preview: rai the export o 1 operator however incremental and decremntal bids which will ideally follow the same line. Reducing i gross cost is A increasing local ost is AEC a cost given The mports will requireEDB, the net cgeneration at +BCD. by the red line while the savings from reducing exports is given by the green line. To alleviate congestion the system operators will buy INCs on the import side at a marginal price P2 and will sell back DECs on the export side at a marginal price P1. The total cost of congestion relief through INCs and DECs settled at marginal prices is given by the rectangle AEDB. The nodal pricing approach is also based on the marginal prices P2 and P1 which reflect the nodal prices at the import and export nodes. However instead of paying for congestion relief the nodal pricing approach charges the price difference P2-P1 to all the power flowing from node 1 to node 2. The white The DEC Game Redispatch Social cost Price P2 A Export supply function at location 1 B P* P1 C D E Congestion Relief payment F Congestion relief cost Avoided cost function at location 2 Flow limit Scheduled flow Quantity Unconstrained optimal export November 4, 2005 All rights reserved to Shmuel Oren This figure shows how it is possible to benefit by over scheduling import/export ENRON’s “Death Star” strategy November 4, 2005 All rights reserved to Shmuel Oren The DEC GAME is one of the methods used by ENRON to manipulate th...
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