A Study of the Curtailment Model for Bilateral Transaction in Power Market Environment

Transaction curtailment has become an indispensable method of relieving transmission congestion to maintain system security and reliability in the bilateral transaction model. There are mainly two types of existent curtailment models, in which the NERC model and minimum overall curtailment model are typical. In this paper, the curtailment characteristics of the two models are first analyzed qualitatively, and further their advantages and disadvantages are investigated. Then, on this basis of analysis results, in order to overcome their disadvantages, by introducing the concept of relative entropy the curtailment model of bilateral transaction based on relative entropy is proposed, in which the relative entropy is used as the objective function of curtailment optimization problem. The analysis of curtailment characteristics shows that this proposed model has not only the fair characteristic of the NERC model to achieve transaction curtailment in terms of the contribution of transaction on the congested lines, but also the effective characteristic of the minimum overall curtailment model to achieve less cost of transaction curtailment than that of the NERC model, thus providing more reasonable transaction curtailment