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Green energy transaction assessment on individual customer based on power factor correction coefficient

Abstract In this paper Power factor correction coefficient based transmission pricing is proposed to analyze an individual customer’s effect due to green energy transactions in existing power system. In this novel approach power factor correction coefficient is calculated for each customer under every transaction. This power factor correction coefficient is then added in conventional embedded cost distance based MW-mile and MVA-mile method for transmission pricing calculation for both active and reactive power flow through transmission line. This new proposed transmission pricing method calculate transmission charges for each customer and also help an ISO (independent system operator) to decide whether transaction increases or decreases the transmission cost. On the basis of performance of transaction an ISO can penalize or reward them. Proposed analysis is implemented on a 3-area IEEE-30 bus system with seven tie-lines in MATLAB environment. To show the effectiveness of the proposed method the results are compared with and without power factor correction based transmission pricing for each customer.