Abstract: Pricing mechanism of power transmission is very important to the operation of the electricity market. Different power markets adopt different pricing mechanisms according to their actual conditions. For multi-level power grid with cross-region transmission transaction, its main features are multi-level nesting of different transmission owners with independent asset relations, and coupling of several spot markets. In the formulation of pricing mechanism, it is necessary to consider not only the verification, collection and allocation of transmission costs in different transmission owners, but also energy pricing and transmission right mechanism in different spot markets. In this paper, the concepts of transmission regulatory agency, transmission pricing area, price area, the territory of transmission service, right of transmission service are proposed. Then the actual practice and existing problems of transmission pricing mechanism in European, British, American PJM and Australian power markets are systematically introduced, and the IEEE 14-node system is used to demonstrate the transmission pricing mechanism. This paper finally compares and analyzes the differences among several pricing methods, and summarizes the enlightenment to China's power market reform.

Key words: power market, transmission pricing, multi-level power grid, transmission right, spot market, electricity market reform