An Improved Days-Ahead Transaction Bidding Model Based on Power Decomposition

With the development of electricity market fair competition becomes the most important and basic principle. Although the transmission losses account for a very small part in the full cost of the electric transactions, how to allocate the transmission losses has great effects on the special trade and the network customers. The paper proposes the analytic expression of power components distributing in transmission power and branch loss. A method of correcting generation bidding price considering transmission losses is proposed based on power distribution theorem and cost flow conservation principle. The bidding price corrected model takes into account the effect of generator´s position, generator´s transmission paths and generator´s transmission losses on nodal price. It is presented that bidding price of power supplies should not be provided as a generator but as a plant. This paper creates the days-ahead bidding transaction model with the corrected bidding price of plant. At last, the feasibility and validity of the above-mentioned method is proved through improved IEEE 14 buses system.