Effect of Congestion in Transmission Pricing for a Pool based Power Market considering Losses

In restructured electricity markets, an effective transmission pricing method is required to address transmission issues and to generate correct economic signals. Transmission line constraints can result in variations in energy prices throughout the network. These prices depend on generator bids, load levels and transmission network limitations. A congestion charge is incurred when the system is constrained by physical limits. Nodal pricing approach also called Locational Marginal Pricing (LMP) has become popular method in restructured power markets to address the congestion management. This paper presents LMP calculation with distributed loss model to remove the high mismatch at the slack bus which is a drawback in concentrated loss model. Both of these loss models used DCOPF solved with Genetic Algorithm (GA) and Linear Programming (LP) approach using Power World Simulator and have been applied for New England 39 bus system and the results are compared in each model. Both fixed and linear bids are considered for generators. The load is assumed to be inelastic. Linear bids show reduced generation fuel cost compared to other methods in both the models. KeywordsDelivery factors, Distributed loss, Fixed bid, Generation shift factors,Genetic Algorithm, Linear bid, Nodal price