Contribution of transmission and voltage constraints to the formation of locational marginal prices. (October 2018)

• Record Type: Journal Article
• Authors: Vaskovskaya, Tatiana; Guha Thakurta, Priyanko; Bialek, Janusz
• Is Part Of: International journal of electrical power & energy systems. Volume 101(2018)
• Page Start: 491
• Page End: 499
• Publication Date: 2018-10
• Subjects: Locational marginal pricing -- Optimal power flow -- Lagrange multipliers; Electrical engineering -- Periodicals; Electric power systems -- Periodicals; Électrotechnique -- Périodiques; Réseaux électriques (Énergie) -- Périodiques; Electric power systems; Electrical engineering; Periodicals; 621.3
• DOI: 10.1016/j.ijepes.2018.04.004
• Languages: English
• ISSNs: 0142-0615

Abstract

Highlights: LMPs are expressed as components due to each transmission/voltage constraint. A component consists of price-bonding factors multiplied by LMP at marginal nodes. The developed methodology is based on full AC OPF and is reference bus independent. Price-bonding factors show reaction of marginal nodes due to relevant factors. Method to determine price signals for transmission planning, market monitoring, etc . Abstract: This paper develops analytical formulae for expressing Locational Marginal Prices (LMPs) as the sum of components due to each of transmission and/or voltage binding constraints using full non-linear Alternating Current (AC) power system model. Each LMP component at a node consists of a price-bonding factor (PBF) multiplied by the marginal price of a corresponding marginal node. Hence PBF represents a price linkage between a marginal and a non-marginal node due to a certain system operating constraint. The aim of the methodology is not to determine LMPs but to decompose them in order to identify particular constraints that are affecting the formation, thereby identifying those lines that may need upgrade. The methodology has been tested on 5-node PJM and 2746-node Polish systems.