FRAMEWORK FOR ENERGY BROKERAGE SYSTEM WITH RESERVE MARGIN AND TRANSMISSION LOSSES

The power industry in the United States is presently participating in a changing business environment. While planning to meet future peak de mand is stilt a concern, the efficient utilization of existing generat ion and transmission resources is fast becoming of primary interest. T his interest suggests to move from cost-based market operations to pri ce based market operations. In such a business environment, a need for mechanism to determine pricing of various ancillary services is desir ed as the ancillary services go together with electrical power transfe r. The proposed approach develops a novel method of pricing mechanism for reserve margins and transmission losses as a part of the overall t ransaction in an energy brokerage system. The brokerage model describe d in this paper is based on the formulations using linear programming.