A proposal for transmission pricing based on a combined postage stamp method and sensitivity indices for electricity cross-border trade in the ASEAN power grid

This paper proposes a transmission pricing based on a combined postage stamp method and sensitivity indices for electricity cross-border trade in the ASEAN power grid (APG). The postage stamp pricing is a uniform tariff expected to recover project investments, operation and maintenance costs. With the combination of the postage stamp method and sensitivity indices, this pricing method could send correct economic signals to the exporters and importers in the APG based on the system usage and congestion. To demonstrate its effectiveness, the proposed method is applied to a 12-bus test system. Simulation results indicate that the proposed method could ensure a recovery of investment costs and concurrent costs of operation and maintenance in an efficient, fair and simple manner