A Method of Modifying Generation Bidding Price Based on Power Distribution

The location of power supply and transmission path are different in transmission network, so every power supply produces different transmission loss. Therefore, the effect of transmission losses on bidding price can not be neglected. Just the before-mentioned reason, this paper proposes a method of modifying generation bidding price considering transmission losses based on power distribution theorem. The power distribution theorem describes the distribution of power components supplied by every power supply in transmitted power along branches, transmission losses and load with analytic expression. The nodal price computation model of a generator is created on the basis of the power distribution theorem. This model considers the effect of generator's location, generator's transmission roads and generator's transmission losses on nodal price. At last, the IEEE 30 bus system is used to demonstrate the validity of the proposed method.