presented at AEC

1. CONGESTION MANAGEMENT IN
THE CONTEXT OF DEREGULATION
Guided by
Dr. Banikanta Talukdar
Associate Professor
Electrical & Instrumentation Engineering
Assam Engineering College
Presented by
SANJIT BRAHMA (EE-16/15)
TANMOY GHOSH (EE-16/18)

2. DEREGULATION
 What is deregulation?
 Different entities of deregulation
 Present scenario
 Advantages of deregulation
 Drawbacks of deregulation

3. ELECTRICAL ENERGY
 Can be easily transmitted in bulk amount to a large
distance
 Cannot be stored in large chunks
 Has to be made available only on demand on real time
basis
 The flow of electric current obeys laws of physics rather
than the wish of traders
WHAT IS MEANT BY CONGESTION ?
 A shortage of transmission capacity to supply a waiting
market
 It not only impacts reliability but also decreases efficiency
 As every transmission line is characterized by:
 Thermal limits
 Voltage limits
 Stability limits

4. SOLUTION
To build additional transmission facilities & to decrease end user demand for electricity.
CONGESTION IN DEREGULATED MARKET
 In deregulated structures, with generating companies competing in an open
transmission access environment, the generation / flow patterns can change drastically
over small time periods with the market forces.
 In such situations, it becomes necessary to have a congestion management scheme in
place to ensure that the system stays secure
 However, being a competitive environment, the re-dispatch will have direct financial
implications affecting most of the market players, creating a set of winners and losers.

5. ROLE OF ISO
 Maintenance of system security & reliability
 Service quality assurance
 Promotion of economic efficiency & equality
 Responsible for the market settlements ,unit commitment, and determination of the pool price
MARGINAL COST
It is an increase in total cost that results from a one unit increase in output .
DOUBLE AUCTION
 Buyers try to get lower prices as they compete with other buyers
 Sellers try to get higher prices as they compete with other sellers

6. DERIVATION OF MARKET CLEARING PRICE
Individual Supply curves

7. Individual demand curves

8. When buyers and sellers
interact , the price and
quantity will be at the
intersection of the supply
and demand users

10. METHODS OF CONGESTION MANAGEMENT
 Congestion management is a mechanism to prioritize the transactions and commit to
such a schedule which would not overload the network
 A parameter termed “willingness to pay avoid curtailment” ha been developed to
determine the transmission curtailment strategies and transmission priorities
 Economic values associated with transactions need to be disregarded
 Transaction rescheduling is done within the security region closest to the scheduled
transactions
 Pro-Rata Rationing: It is based on the Principles of Pro-rata curtailment. The method
allocates scarce capacity in a manner that all applicants receive an equal percentage of
the total amount of capacity they apply for.
 Priority Based Rules : Some of the Priority, based on pre-defined rules are Lowest MCP.

11.  Transfer Capacity based Auctioning
There are mainly two categories i.e. Explicit Auction and Implicit Auction.
1 Explicit Auctioning
TSOs of the systems between which congestion exists sell their interconnector
capacity to the highest bidder. Explicit auctioning separates energy flows from
transmission capacity.
2 Implicit Auctioning
 Re-dispatch
 Coordinated auction of generation and transmission capacity
 Nodal pricing or locational marginal pricing
 Market splitting auctions can be organized in two ways i.e.. Market splitting and
Market coupling

12. MARKET SPLITTING
 Unconstrained prices are applicable to all the participants
 Whenever power flow introduces transmission constraints, the
system price dost not remain same
 The market is split into different bid areas and area prices are
calculated
 The market price is reduced in the generation surplus areas
 The market price is increased in the generation deficit areas
 in the low price/surplus area , the seller is credited the
capacity fee
 In the high price area/deficit area ,the seller is credited and the
buyer is debited the capacity fee

13. MARKET COUPLING
 It is a method for integrating markets which allows two or more wholesale
electricity market areas to be merged into a single market area.
 Coupling markets involves handling their respective supply and purchase curves
jointly according to the overall merit order.
 The overall aim of market coupling is to maximize the total surplus of all
participants.
 This can be achieved by considering that one exchange will export to another
for as long the available cross-border capacity is exhausted.

14. CONCLUSION
 Due to Congestion in Transmission Lines Billions of units of electricity
goes unaccounted and waste and lots of money is also wasted
 The effect of transmission congestion is to create market inefficiency.
 A persistent congestion problem is an indication to install new generation
capacity or to build additional transmission facilities
 In a country like India, which is already a Power deficit nation, congestion
comes as a fatal blow.

15. THANK YOU