Cost sharing methodologies for remedial actions in cross-border cooperation between electricity transmission system operators

The implementation of a methodology for the cost allocation of remedial actions is a necessity for the cooperation of European Transmission System Operators (TSOs). In this study, we adhere to the entirety of the methodology for cross-border congestion management cost sharing developed for the CORE Capacity Calculation Region (CCR) and focus on the variety of power flow decomposition methods that could be used, potentially leading to quantitative differences in the final allocation of congestion management costs. We analyse results from simulating the application of these decomposition methods over a set of test cases based on IEEE benchmarks. Our findings underline the major role of loop flows and reveal that the final cost-sharing outcome is relatively insensitive to the choice of a particular flow decomposition approach. Given that there is no unique answer to the power flow decomposition question, this adds confidence to the cost allocation process envisioned for Europe.