Wheeling Tariff Computation under Power Industry Liberalization

H.-T. Yang and C.-J. Chen (Taiwan)


bilateral contract, power wheeling tariff, short run marginal cost


Following the trend of power industry liberalization in Taiwan, the paper studies the widely used power wheeling tariff computational methods, such as the postage stamp method (PSM) and the four MW-mile based methods, including power flow based MW-mile method (MWM), modulus method (MM), zero counter-flow method (ZCM), and dominant flow method (DFM). The meanings, advantages and disadvantages of these methods are explored in the paper. Besides, the short-run marginal cost based power wheeling tariff computation method is investigated. To observe the effects of power wheeling on the power system operations, the paper uses an incremental technique to evaluate the influences of the power wheeling injection on the line flow variations on contract paths. To verify the feasibility of the related power wheeling tariff computations, cases are studied in a simplified practical Taiwan power system through the PSS/E optimal power flow package. Results obtained from the simulation results are presented and the applicable methods for Taiwan power market are discussed in this paper.

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