Management of multiple congested conditions in unbundled operation of a power system

Abstract

This paper studies congestion management based on congestion pricing as may be done by an Independent System Operator. Four main concepts are discussed: congestion pricing can lead to the same solution as an Optimal Power Flow, pricing need not have cost infor- mation available, good estimates of nonlinear cost coef- cients are necessary, and pricing for congestion man- agement is separable from pricing congestion for the purpose of transmission network revenue reconciliation. Emphasis is on the determination of sucient informa- tion by observation of the behavior of the market to permit optimum pricing without explicit communica- tion among parties, and without generators ever being explicitly concerned about the relief of flow congestion. Results from simulated experiments are presented.