Optimal multi-area wheeling

Abstract
An important consideration in wheeling is where a transaction involves several parties, that is, multi-area wheeling. Power from seller to buyer flows through several intermediate utilities. Each utility represents an individual control area, engaged in part of a more complex wheeling transaction. Individual wheeling rates then have to be computed for each area. The question of how much energy should be transported through each path and what wheeling price should be paid is then an issue of importance. This is formulated as a nonlinear optimisation program with linear constraints and solved by a gradient projection method. The availability of FACTS capability to implement the optimal wheeling strategy once determined, is assumed in this paper.

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