Security Cost Allocation under Combined Bilateral-Pool Market Dispatch

M.P. Abdullah, M.Y. Hassan, and F. Hussin (Malaysia)


System operator, pool market, bilateral market, congestion, security cost allocation


This paper proposes a security cost allocation method in a combined- bilateral-pool market structure. The security cost presented here is the cost of congestion relief. It is suggested that the pool market does any generation adjustments for congestion relief but the incurred security costs are shared between bilateral and pool market. The costs allocated to the bilateral market are further allocated to each bilateral transaction based on their contribution to security problem. This paper begins by discussing the congestion management and security cost allocation in a pool market model and the concept of bilateral market. Then the proposed security cost allocation strategy of the combined bilateral-pool market is presented. Case studies using IEEE-14 bus system are presented to test the proposed method.

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