Significance and Impact of Unscheduled Interchange (UI)-Mechanism in Electricity Market

ABT is a performance based tariff for the supply of electricity by generators owned & controlled by government. It is also a new system of scheduling & dispatch, which requires both generators and beneficiaries to commit to day-ahead schedule. ABT along with the Electricity of Act 2003 is perhaps the most significant & definitive step taken in the Indian power sector. The mechanism is based on financial principle. This paper proposes an approach for analysis & determination of UI based on Frequency based Tariff for competitive electricity market. The power system deviates from the optimized solutions. There is an urgent need for determination of UI revenue paid by such defaulter market participants. Frequency based technique has been applied to double auction modified IEEE30 bus system.