Analyzing congestion surplus distribution based on social welfare optimization

The distribution of congestion surplus affects not only the short-term economic interests stakeholders in power spot market, but improvement social welfare long run. At present, mature electricity markets developed countries is usually returned to users or generation enterprises according established proportions. Although this method helps achieve rational surplus, it does offer a solution problem and cannot maximized welfare. In light principles economics, we propose paper injecting into capital pool grid as transmission line expansion fund fundamentally solve problem. Modeling results case studies presented our work verified that proposed model could Pareto optimization. Finally, combining (PTD) pricing supervision method, puts forward for use on market reach optimal allocation resources.