Investigation on congestion-based optimal energy price for competitive electricity market

Author

Nappu, Muhammad Bachtiar ; Saha, Tapan Kumar ; Fonseka, P. A Jagath

fYear

2008

fDate

24-27 Nov. 2008

Firstpage

860

Lastpage

865

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;

fLanguage

English

Publisher

ieee

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

Type

conf

DOI

10.1109/ICSET.2008.4747128

Filename

4747128