Reserve Cost Allocation on Wheeling Using Tracing Method

Renewable energy has site-specific characteristics and uncertainty in its production. The location of large-scale renewable energy generators, which are generally far from the load location, requires the construction of a transmission network which is relatively difficult to build. Fluctuating production causes the need for backup supplies. These site-specific characteristics and uncertainty problems are opportunities for utility to provide wheeling and reserve services. This reserve service creates additional costs for system operation that must be added to wheeling costs as a component of the reserve cost. The research was conducted on a modified IEEE 30 bus system. The impact of not producing wheeling generators on utility operating costs was observed with optimal power flow. The impact obtained is then allocated to the wheeling entity using the tracing method, which in this study consists of two entities. The calculation results show an increase in utility operating costs by 115.13 $/hr when the wheeling generator is not producing. The first wheeling entity bears costs of 23.20 $/hr and the second wheeling entity bears 91.93 $/hr.