Pricing for load and wheeling charge considering transmission paths in deregulated power markets

Rui Li*, Luonan Chen, Ryuichi Yokoyama

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)


    This paper proposes a practical method to derive reasonable load prices and wheeling charges in a deregulated power market. The proposed pricing model not only ensures the recovery of expense for utilities, but also provides reasonable electricity prices for consumers. A competitive market environment is defined at the beginning of this paper to include independent power producers (IPPs), utilities and customers. The pricing model is formulated mathematically as a nonlinear optimization problem. Based on the optimal solution, the transmission path can be identified by investigating power flow with respect to generator outputs and load demands through sensitivity analysis. The proposed approach is applied to an IEEE-30 bus system, where the simulation results demonstrated that the proposed pricing strategy can also be used for the transmission congestion and loop flow problems.

    Original languageEnglish
    Pages (from-to)496-505
    Number of pages10
    JournalInternational Journal of Electrical Power and Energy Systems
    Issue number7
    Publication statusPublished - 2005 Sept


    • Deregulation
    • Load price
    • Marginal principle
    • Optimal power flow
    • Sensitivity analysis
    • Transmission path
    • Wheeling charge

    ASJC Scopus subject areas

    • Energy Engineering and Power Technology
    • Electrical and Electronic Engineering


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