An excitation and risk mechanism to power transmission market

In an electric power market power transmission is still in monopoly and it still has no competition. An excitation and risk mechanism is introduced in this paper. Transmission price restriction is one part of the mechanism. In restriction determination several factors need to be considered and there are some answers in this paper. It is the electric network which causes power transmission loss, and as the owner of it the power transmission company (PTC) should carry the burden for all, or at least, part, of transmission loss! So the transmission fee should be redistributed into two parts. One part is used to compensate the transmission loss and the residual amount is the real income of PTC. After the transmission fee is redistributed, the real income curve of PTC is a contra-quadric curve. It can bring excitation and risk to PTC and it is easy to realize. An IEEE 14-bus network is used to test the consistency of the one proposed in this paper with expected results and the simulation results illustrate that it is effective.