Optimal dispatch under transmission contracts

Open transmission access is now the most topical issue in power system deregulation. Power system operation poses the greatest challenge to a competitive environment incorporating open transmission access and there art: some fundamental operational problems that are still unresolved. This paper seeks to provide an approach to the power dispatch problem in a structure dominated by bilateral and multilateral transmission contracts. A framework for price-based operation under these conditions is developed and a methodology for optimal transmission dispatch is proposed. The case study results illustrate that the proposed market arrangement and operating mechanisms are compatible with this new business environment.