Study on congested power system in competitive electricity market: A proposed methodology

The primary economic concern of the market players in the restructured electricity market is the practice of market power by one or more participants. Market power practice can encumber competition in power production, service quality and technological innovation. This paper proposes a new composite method for investigating market power under congested condition. This method is based on an improved technique of locational marginal price (LMP) design employing shift-factor optimal power flow. Market concentration and social cost of congested are evaluated. Numerical example on the 24-bus IEEE Reliability Test system (IEEE-RTS) is presented to illustrate the proposed method.