Assessment of Optimal Multinodal Bilatral Transaction In The Competetive Electricity Market

In recent years, the development in the deregulated electricity market structure increases the number of market participants thereby, creates the market more competitive. It is important for the independent power producer (IPP), independent system operator and bulk power customer to know and select the least cost transaction. In this paper, a method for selecting the optimal multi-nodal bilateral transaction for the IPP based on the estimation of maximum allowable load of the buyer buses and on the transaction transmission pricing is proposed. Estimation of maximum allowable load of the buyer buses used to assess the feasibility of each transaction and also help to create profitable and buyer attractable seller price bid. In the context of electricity market, transmission pricing is an important tool to determine the optimal multi-nodal bilateral transaction for the IPP at different seller buses .In this thesis, both embedded cost transmission pricing and incremental cost transmission pricing (short run marginal cost) is considered for the estimation of transaction transmission cost. The proposed method is demonstrated and analyzed for the considered multi-nodal bilateral transaction on 6 bus system and IEEE 30 bus system