Depending on type of resources generation of electricitypricing algorithms

Two main components are taken into consideration while revealing the price of electric energy for transmission system users. These; production and transmission costs. Production cost can be listed as first investment, business, fuel, etc. Depending on the type of source used, electric energy can be produced at a very different cost from each other. Transmission costs include investment and operation costs of transformer centers and transmission lines used in the transmission system. However, disadvantaged prices for some users arise because the type of production source and the geographical location of the plant are not considered in the calculations made. On the other hand, the development of the interconnected system and its homogeneous structure are also adversely affected by these unfair pricing methods. Suggested pricing algorithm; bara-based transmission costs are based on investment cost based pricing (YMDF) method and production costs are based on calculation of each source separately according to type. Algorithm was created by a method called Multi-Stage Dynamic Programming (MSDP) which is derived to use these two important data in the gradual solution technique of Dynamic Programming. The results of the price functions generated by the MSDP method on an exemplary balanced system section are compared with those of traditional pricing methods. In addition, the MSDP method was also applied on the IEEE-30 bare test system and the results obtained were compared with the values currently applied. In order to provide a homogenous interconnection system, it has been observed that there is a significant benefit in terms of offering different price alternatives to producers and consumers.