WHEELING AND MARGINAL WHEELING RATES - THEORY AND CASE-STUDY RESULTS

The theory of a novel approach to evaluate optimal wheeling rates for the case of bus to bus wheeling is developed in this paper. This approach does not assume the existence of a spot price based energy market-place. It is based on the marginal cost theory which has been used for electricity pricing. On the basis of the equitable sharing of the benefits, arising from wheeling transactions, among the wheeler, the power seller and the buyer, this approach has the advantage over others that it avoids the direct evaluation of the network maintenance cost and the quality of supply cost components. Moreover, in the proposed approach, the additional power losses resulting from the wheeling transaction are modelled to be contributed by the seller and buyer, rather than by the wheeling utility. The numerical results of two case studies are presented in the paper. A comparison with the wheeling rates of other published approaches is also outlined.