A Graph-Theoretic Approach to Capacity Benefit Margin Calculation for Large Multiarea Power Systems

In a deregulated power market, independent system operators exchange information related to the available transfer capability (ATC) of their respective areas for efficient power system operation. Accurate ATC calculation is important for efficient market operations. Among the parameters required to calculate ATC, the capacity benefit margin (CBM) is an important one. CBM represents the interarea tie-lines capacity reserved in order to have access to external generation in an event of power supply shortage. This paper proposes a new technique for CBM evaluation using graph theory concepts. The proposed technique can be used as an effective tool to solve the CBM problem for large multiarea power systems which are not fully connected and may have multiple deficient areas, unlike previous approaches which considered only fully connected areas with only one deficient area. The IEEE 24-bus reliability test system is employed to implement the proposed method. A performance analysis of the proposed technique shows that it can find a feasible solution efficiently.