Impact of Security Constraints on Electricity Market Economics

Authors: Varaprasad Janamala

Abstract
In the present pace of power system deregulation, transmission system is playing a key role in electricity market settlement. The inability of transmission system to dispatch market driven schedule is known as congestion and which is not desirable for successful operation. The economic efficiency is mainly dependent on transmission system support and there is a need to understand the impact of security constraints on market clearing process. This work considered (N-1) line outage contingency as a security constraint and imposed on pool based electricity market settlement. The analysis is done on a simple three bus network and the results validating the need of transmission system expansion/upgradation to avoid market economic inefficiency.

Index Terms

Congestion, Deregulation, Pool market settlement, Redispatch

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Impact of Security Constraints on Electricity Market Economics