Assessment of contribution-based congestion cost allocation using AC and DC for bilateral market

The contribution-based congestion cost allocation method allocates the congestion cost to each electricity market participant based on their contribution towards congestion problem. The contribution can be measured by determining each participant´s flow contribution to the congested line/s, by using AC or DC power flow approach. This paper begins with the concept of contribution based congestion cost allocation for bilateral market structure. Then the cost allocation method using DC and AC approaches are discussed. Case studies using the IEEE-30 bus system are performed to assess and compare the two approaches under different scenarios; lossless system, considering losses, normal loading and high loading conditions.