Title :
Investigation on congestion-based optimal energy price for competitive electricity market
Author :
Nappu, Muhammad Bachtiar ; Saha, Tapan Kumar ; Fonseka, P. A Jagath
Abstract :
Market operators are required to effectively manage transmission line, particularly as congestion occurs where energy prices are different at all nodes in the network. Locational marginal prices (LMP) have been extensively recognized as an appropriate solution in managing transmission congestion. This paper investigates formulation of LMP schemes using different approaches; DC optimal power flow and shift factor-based optimal power flow. Two LMP schemes are developed to observe the effectiveness of the method on a 24 bus IEEE RTS. Finding of this work is to support developing standard market design which promotes economic efficiency, maintains power system reliability, and mitigates exercising market power.
Keywords :
load flow; power markets; power transmission economics; power transmission reliability; pricing; 24-bus IEEE RTS; DC optimal power flow; LMP schemes; competitive electricity market; congestion-based optimal energy price; economic efficiency; locational marginal price; market operator; power system reliability; shift factor-based optimal power flow; standard market design; transmission line network; Costs; Economic forecasting; Electricity supply industry; Environmental economics; Load flow; Power generation economics; Power system economics; Power system modeling; Power system security; Production;
Conference_Titel :
Sustainable Energy Technologies, 2008. ICSET 2008. IEEE International Conference on
Conference_Location :
Singapore
Print_ISBN :
978-1-4244-1887-9
Electronic_ISBN :
978-1-4244-1888-6
DOI :
10.1109/ICSET.2008.4747128
