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Impacts of causal transmission losses allocation on generation pricing for long-term contracts in Brazil

R.S. Ferreira, M. R. Carvalho, L.A. Barroso, B. Bezerra, L.. M. Thomé, M. V. Pereira

6th IEEE PES Transmission and Distribution Latin America Conference and Exposition - IEEE PES T&D-LA 2012, Montevideo (Uruguay). 03-05 September 2012


Summary:

The allocation of ohmic losses in the transmission system with a method that complies with the requisite of cost causality is critical for sending location-specific, efficient economic signals to transmission system users, and to incentivize the efficient use and expansion of the electricity system. In this paper, we employ a formulation of the Incremental Transmission Losses allocation method that is derived from the equations of the linearized power flow to assess the possible impacts that adopting a causal allocation method would have on generation pricing for long-term contracts in Brazil - a country in which a pro-rata method (which does not result in location-specific economic signals) is currently used. While assessing these impacts, we focus on treatment of risk from the generators' perspective.


Keywords: Transmission losses allocation, linearized power flow, generation pricing, risk.


DOI: DOI icon https://doi.org/10.1109/TDC-LA.2012.6319112

Published in IEEE PES T&D-LA 2012, pp: 1-10, ISBN: 978-1-4673-2672-8

Publication date: 2012-10-04.



Citation:
R.S. Ferreira, M. R. Carvalho, L.A. Barroso, B. Bezerra, L.. M. Thomé, M. V. Pereira, Impacts of causal transmission losses allocation on generation pricing for long-term contracts in Brazil, 6th IEEE PES Transmission and Distribution Latin America Conference and Exposition - IEEE PES T&D-LA 2012, Montevideo (Uruguay). 03-05 September 2012. In: IEEE PES T&D-LA 2012: Conference proceedings, ISBN: 978-1-4673-2672-8

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