Locational Marginal Pricing Method Research Articles

Optimal Power Flow of Power System with Static VAR Compensator using Moth Flame Optimization with Locational Marginal Price

The determination of a generation unit's locational marginal price (LMP), which depends on our understanding of transmission line capacity and optimal power flow (OPF) based on reality, is crucial to evaluating the performance of the unit and determining its profit. Minimising the total cost of the generators will lower the price of electricity on the market. Since power flow equations are nonlinear, numerical and repetition-based approaches should be used to solve them. The equations in this paper are solved using a Moth Flame Optimization (MFO), and to enhance the performance of the MFO in its structure, for simultaneous calculations of power passing through in transmission lines so that by learning about the capacity of transmission lines, in addition to the optimal power flow becoming a reality, the price of electricity is determined using uniform market pricing, or LMP method. The FACTS device used for the problem is Static Var Compensator (SVC). Finally, values for bus voltages, line losses, power injected to buses, power travelling via lines, total generating costs, and generator profits would be included in the output of the proposed MFO algorithm. Additionally, the results of testing the proposed methodology on the IEEE 30-BUS network reveal improvements on the OPF problem.

Construction method of ancillary emergency backup service based on battery energy storage system

The power systems with a high proportion of clean energy face both greater uncertainty in power generation and the threat of stability brought by low inertia. After a fault, the rapid drop in power grid frequency, large voltage fluctuations, and insufficient reactive power support can lead to new energy generation units being disconnected from the grid. Fast active and reactive support will play an important role in suppressing fault propagation in low-inertia systems and preventing large-scale power outages. The reserve and frequency regulation market is a necessary means to deal with power grid failure events, but many blackout events occurred due to insufficient reserve capacity and ineffective market transaction mechanisms. As a flexible power regulation resource, BESS (battery energy storage system) has been incorporated into the power ancillary service market planning. In some engineering cases, the frequency regulation ancillary service provided by energy storage has also shown its advantages. However, there is a lack of in-depth research on how to gather BESS to take part in AEBS (ancillary emergency backup services) in the early stage after the failure. Therefore, in view of the dynamic change of power system risks and the different response speed of different backup resources, this paper proposes to establish a segmented combined backup mode to realize the combination of emergency backup at the initial stage of failure and frequency regulation backup during the fault recovery process. A related model of AEBS demand assessment and emergency backup service pricing mechanism is established. And considering the capacity, life loss and opportunity costs of energy storage for AEBS, a LMP (locational marginal price) method is used to calculate the electricity price of AEBS provided by BESS. It has proved the effectiveness by constructing a grid AEBS based on BESS used by the IEEE 30 node system.

Transmission Congestion Management by using LMP Method in De-Regulated Electricity Market

The power transmission network has the problem of management due to congestion in the open access system. Power flow due to transactions in transmission lines can cause overloads. This condition is known as congestion. There are several alternative methods for congestion management which are suitable for different electricity markets. In this paper the Locational Marginal Pricing (LMP) method is discussed for an assessment of transmission congestion management and results are obtained to manage the transmission congestion such as redispatching existing generators outside the congested area to supply power to the customer. The primal dual IP algorithm is used to calculate the LMP’s and congestion cost values. The proposed work has been implemented on a 14-bus test system to illustrate the advantages and disadvantages of this method

A review on Locational Marginal Price (LMP) for deregulated industry

In recent years the power industry has experienced significant changes in power distribution systems primarily due to implementation of smart grid technologies and implementation of distributed generation.This paper focuses on LOCATIONAL MARGINAL PRICING method which is the most effective method for determining the optimal location of generator taking consideration of the constraints like voltage limits, line flow limits,congestion of the line, line losses etc.

A review on Locational Marginal Price (LMP) for deregulated industry

In recent years the power industry has experienced significant changes in power distribution systems primarily due to implementation of smart grid technologies and implementation of distributed generation.This paper focuses on LOCATIONAL MARGINAL PRICING method which is the most effective method for determining the optimal location of generator taking consideration of the constraints like voltage limits, line flow limits,congestion of the line, line losses etc.

A Novel Policy for Locational Marginal Price Calculation in Distribution Systems Based on Loss Reduction Allocation Using Game Theory

In this paper, a novel locational marginal price (LMP) policy for distribution system with significant penetration of distribution generation (DG) in competitive electricity market is presented. This new LMP method is based on remunerating DG units for their participation in reduced amount of energy losses in distribution systems brought about by participation of all DG units in supplying demand. Also, this method is combined with an iterative solution. This approach provides an efficient tool for distribution companies (DISCOs) to estimate the state of the system in the next step which other existing approaches of LMP fail to provide this system state estimation. Finally, in order to expand LMP method and provide effective prediction method for DISCOs to estimate the day-ahead state of the system, ANN tool is employed to predict the market price and demand for the next 24 h. This LMP prediction is a powerful operational tool for DISCO to exert its control over private DG units. However, prediction methods contain error. Therefore, uncertainty modeling is implemented for modeling the effect of error in prediction on the LMP calculation for the next day.

A new method for locating TCSC for congestion management in deregulated electricity markets

This paper presents the effects of thyristor controlled series compensator (TCSC) on congestion of transmission lines and locational marginal price (LMP) in deregulated power systems. The placement of TCSC is to reduce congestion in deregulated electricity markets based on the calculation of congestion rent. The main objective of TCSC placement is either to minimise congestion rent or to maximise social welfare. Genetic algorithm-based optimal power flow (OPF) algorithm is used to maximise social welfare for finding the best location and rating of TCSC and the results obtained are compared with conventional LMP method. A sample five bus test system is used to show the influence of TCSC on congestion and LMP in the electricity market and for finding best location for TCSC placement.