Model of Information Exchange for Decentralized Congestion Management

The present study examines an efficient congestion management system compatible with the evolving environment. The key is to build an information model shared and exchanged for marketbased solutions to alleviate congestion. Traditional methods for congestion management can be classified into two categories, i.e., the centralized scheme and the decentralized scheme, depending on the extent to which the independent system operator (ISO) is involved in market participants' (MPs) activities. Although the centralized scheme is more appropriate for providing reliable system operation and relieving congestion in near real-time, the decentralized scheme is preferred for supporting efficient market operation. The minimum set of information between the ISO and MPs for decentralized scheme is identified: i) congestion-based zone, ii) Power Transfer Distribution Factors, and iii) transmission congestion cost. The mathematical modeling of the proposed information is expressed, considering its process of making effective use of information. Numerical analysis is conducted to demonstrate both cost minimization from the MP perspective and the reliability enhancement from the ISO perspective based on the proposed information exchange scheme.