OPTIMAL DISPATCH METHOD TO EVALUATE WHEELING CHARGES CONSIDERING BILATERAL CONTRACTS FOR NON-UTILITY GENERATORS (NUG)

Abstract

It is necessary to have open access of the transmission systems in a deregulated power system. Hence owner of the transmission system must be paid charges for the use of their system. In this paper an economic dispatch model for bilateral contract has been considered between Non-utility Generators (NUG) and its customer along with host utility. On the basis of extent of the use of the transmission system by the NUG to transact power, wheeling charges will be paid to the transmission system owner. The optimization problem has been solved using Sequential Quadratic Programming method. Results are compared with that of conventional economic dispatch method.