Locational Marginal Pricing Calculation with Rescheduling of Generation in Deregulation

The locational Marginal Pricing (LMP) is very important issue in deregulated environment. This paper provides a method to minimize the locational marginal pricing in the energy market. This market works under locational marginal pricing, i.e., generating units and demand loads are paid and pay, respectively, the locational marginal prices corresponding to the nodes they are connected to. An independent system operator clears the market maximizing the social welfare. As the LMP is also dependent on congestion pricing, here we have reduced the congestion in a particular line by the method of rescheduling of generators. Not all the generators are participating in the congestion initially identified the participating generators based on their sensitivity factors. By the method of rescheduling the generation of the generators congestion can be easily reduced so that congestion cost is reduced. Finally, LMP can be minimized in the deregulated power market. The proposed method is implemented tested on 6-Bus System, IEEE 14-Bus System, IEEE 26-Bus system and IEEE 30-Bus system. It is observed the good result in minimizing the LMP. Keywords— Locational Marginal pricing, Rescheduling of generation, Congestion Pricing, Deregulation, Zonal pricing.