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Assessment of the Norwegian Transmission Pricing Rules by Using a Modified AC-OPF


  • Stamtsis, Georgios C.

    () (Department of Electrical and Electronics Engieering / EAN, University Duisburg-Essen)

  • Bjørndal, Mette

    () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

  • Erlich, István

    () (Department of Electrical and Electronics Engieering / EAN, University Duisburg-Essen)

  • Jörnsten, Kurt

    () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)


This paper focuses on the combined effects of loss factors and zonal pricing in a system that takes as a starting point the procedures of transmission pricing in the Norwegian power system. It interprets the notion of loss factors in an AC power flow model, and develops a method for finding zonal prices consistent with a restricted AC optimal power flow. The effects of decomposing the nodal prices to find a loss factor to cover the marginal cost of losses, and letting the congestion management be resolved by zonal prices based on a DC approximation of the flows, are evaluated by comparing the resulting net prices to those of an optimal AC power flow (ACOPF).

Suggested Citation

  • Stamtsis, Georgios C. & Bjørndal, Mette & Erlich, István & Jörnsten, Kurt, 2004. "Assessment of the Norwegian Transmission Pricing Rules by Using a Modified AC-OPF," Discussion Papers 2004/8, Norwegian School of Economics, Department of Business and Management Science.
  • Handle: RePEc:hhs:nhhfms:2004_008

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    References listed on IDEAS

    1. Woo, Chi-Keung & Lloyd, Debra & Tishler, Asher, 2003. "Electricity market reform failures: UK, Norway, Alberta and California," Energy Policy, Elsevier, vol. 31(11), pages 1103-1115, September.
    2. M. Bjørndal & K. Jørnsten & V. Pignon, 2003. "Congestion management in the Nordic power market - counter purchases and zonal pricing," Competition and Regulation in Network Industries, Intersentia, vol. 4(3), pages 271-293, September.
    3. Herguera, Inigo, 2000. "Bilateral contracts and the spot market for electricity: some observations on the British and the NordPool experiences," Utilities Policy, Elsevier, vol. 9(2), pages 73-80, June.
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    More about this item


    Congestion management; deregulated electricity markets; optimal power flow; loss factors; nodal pricing; Nord Pool; Norwegian power market; pool model; transmission pricing; zonal pricing;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities


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