Optimal location of power plant in power market

In recent decades, the operation of power systems in the power market model has been researched and applied by many countries. The connection location of power plants is always interesting in research to ensure operation and balance of the power market. This paper studies the choice of connection location of the power plant in the power market. The locational marginal pricing method was used and appropriate algorithms were incorporated to determine the optimal location of the power plant for system installation. This study used the PowerWorld to simulate the locational marginal pricing which the installed power plant could make the best profit of the power system [6]. The simulations involved IEEE 39-bus test system. The simulation results showed that the new installed power plant effectively increased the profit, which prevented the system from experiencing a high electricity price.