Abstract—Congestion management is one of the major tasks performed by system operators to ensure the operation of transmission system within operating limits. In the emerging electric power market, the congestion management becomes extremely important and it can impose a barrier to the electricity trading. In the present paper, a concept of transmission congestion penalty factors is developed and implemented to control power overflows in transmission lines for congestion management. Three methods based on optimal power flow are proposed to alleviate congestion in transmission lines and tested. The first two methods require re-dispatching of generators and changes in capacitors’ reactive support only. They can be differentiated on the basis of economic cost involved in making required changes to above variables. The third method deals with load curtailment scheme based on willing to pay charges paid for different transactions in the system to avoid congestion. The formation of different categories for charging willing to pay charges from pool consumers is new feature of this scheme.

Index Terms—Adjustment Bids, Congestion Management, Electricity markets and Optimal Power Flow.

Ashish Saini is with the Electrical Engineering Department, Faculty of Engg., Dayalbagh Educational Institute, Agra-282110, India. (corresponding author e-mail: ashish_711@ rediffmail.com).
A.K. Saxena is with the Electrical Engineering Department, Faculty of Engg., Dayalbagh Educational Institute, Agra-282110, India. (e-mail: aksaxena61@ hotmail.com).

Cite: Ashish Saini and A.K. Saxena, "Optimal Power Flow based Congestion Management Methods for Competitive Electricity Markets," International Journal of Computer and Electrical Engineering vol. 2, no. 1, pp. 73-80, 2010.