Locational Marginal Pricing Approach for a Deregulated Electricity Market
نویسندگان
چکیده
---------------------------------------------------------------------***--------------------------------------------------------------------Abstract In restructured electricity markets, an effective transmission pricing method is required to address transmission issues and to generate correct economic signals to reduce the generation cost. It is necessary to develop an appropriate pricing scheme that can provide the useful information to market users, such as generation companies, transmission companies and customers. These pricing depends on generator bids, load levels and transmission network constraints. Transmission line constraints can result in variations in energy prices throughout the network. The proposed approach is based on DC optimal power flow model with considering of losses. Resulting optimization problem is solved by Quadratic Programming [QP] approach. Locational Marginal Pricing methodology is used to determine the energy price for transacted power and to manage the network congestion and marginal losses. Variation of LMP values with transmission constraint conditions also studied. Simulation is carried out on IEEE 30 bus test system and the results are presented.
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Locational Marginal Pricing (LMP) in Deregulated Electricity Market
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