Different Models for LMP Calculation in Wholesale Power Markets Considering Active Power Reserves: a Comparison
Main Article Content
Abstract
Locational marginal price (LMP) is an important element in the operation of electricity markets. LMP is used to determine payments in the electricity markets, to derive bidding strategies of market participants, and to make plan for new transmission lines and power plants. This paper compares the DC optimal power flow (DCOPF) model and AC optimal power flow (ACOPF) that are used to calculate LMP in the wholesale electricity market. The study takes into account the price-sensitive loads and active power reserves. DCOPF model has 2 forms: DCOPF without losses and iterative DCOPF with losses. Fictitious nodal demand (FND) is used to calculate marginal loss component of LMP. In addition, branch flow limits are also adjusted in the iterative DCOPF model. LMPs, active power outputs and reserves of generators are illustrated on a 3 bus system.
Keywords
Locational marginal prices (LMP), wholesale power markets, active power reserves, DCOPF, ACOPF, fictitious nodal demand (FND)
Article Details
References
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[11] Pennsylvania New Jersey Maryland Electricity Market, PJM ISO.
[2] Fangxing Li, Rui Bo, "DCOPF-based LMP simulation: Algorithm, comparison with ACOPF, and Sensitivity", IEEE Trans. Power Systems, 22 (2007) 1475-1485.
[3] Xu Cheng, Thomas J. Overbye, "An Energy Reference Bus Independent LMP Decomposition Algorithm", IEEE Trans. Power Systems, 21 (2006) 1041-1049.
[4] V. Sarkar and S. A. Khaparde, "Optimal LMP Decomposition for the ACOPF Calculation", IEEE Trans. Power Systems, 26 (2011) 1714-1723.
[5] Marco Zugno, Antonio J. Conejo, "A robust optimization approach to energy and reserve dispatch in electricity markets", European Journal of Operational Research, (2015) 659-671.
[6] J. Frunt, W. L. Kling, J. M. A. Myrzik, "Classification of reserve capacity in future power systems", International Conference on the European Energy Markets, (2009) 1-6.
[7] J. Duncan Glover, Mulukutla S. Sarma, Thomas J. Overbey, Power system analysis and design, 5th Edition, Cengage Learning, USA, 2012.
[8] Allen J. Wood, Bruce F.. Wollenberg, Gerald B. Sheble, Power generation, operation and control, Wiley & Sons, Inc, New Jersey, 2014.
[9] Santiago Grijalva, Peter W. Sauer, James D. Webber, "Enhancement of linear ATC Calculations by the incorporation of reactive power flows", IEEE Trans. Power Systems, 18 (2003) 619-624.
[10] Xingwang Ma, Yonghong Chen, Jie Wan, "MIDWEST ISO Co-Optimization based real-time dispatch and pricing of energy and ancillary services", 2009 IEEE General Meeting.
[11] Pennsylvania New Jersey Maryland Electricity Market, PJM ISO.