Using a System Model to Decompose the Effects of Influential Factors on Locational Marginal Prices
- 29 October 2007
- journal article
- Published by Institute of Electrical and Electronics Engineers (IEEE) in IEEE Transactions on Power Systems
- Vol. 22 (4), 1456-1465
- https://doi.org/10.1109/tpwrs.2007.907121
Abstract
Locational marginal prices (LMPs) are influenced by various factors such as load uncertainty, thermal limit, capacity reserve, and market power. We build a system model to quantitatively analyze the effects of these individual factors and their interactions on the mean and standard deviation of the LMPs, assuming that the factors are either active or inactive. According to the sensitivity analysis results from convex quadratic programming, LMPs are piecewise linear functions of demand variation, which is a key property used in the computation. This paper attempts to answer the following types of questions: (1) To what extent does market power raise the LMPs above the marginal cost? (2) What effects will generation or transmission capacity expansion have on relieving high LMPs under high demand scenarios? An IEEE 30-bus test system is used as an example to demonstrate our approach.Keywords
This publication has 16 references indexed in Scilit:
- Oligopoly models for market price of electricity under demand uncertainty and unit reliabilityEuropean Journal of Operational Research, 2007
- Z-Method for Power System Resource Adequacy ApplicationsIEEE Transactions on Power Systems, 2006
- Identification of Market Power in Large-Scale Electric Energy MarketsPublished by Institute of Electrical and Electronics Engineers (IEEE) ,2006
- Locational Marginal Price SensitivitiesIEEE Transactions on Power Systems, 2005
- Market-Clearing With Stochastic Security— Part I: FormulationIEEE Transactions on Power Systems, 2005
- An Oligopolistic Power Market Model With Tradable NO$_rm x$PermitsIEEE Transactions on Power Systems, 2005
- Strategic gaming analysis for electric power systems: an MPEC approachIEEE Transactions on Power Systems, 2000
- Convergence behavior of interior-point algorithmsMathematical Programming, 1993
- An analogue of Moreau’s proximation theorem, with application to the nonlinear complementarity problemPacific Journal of Mathematics, 1980
- Optimal Load Flow with Steady-State SecurityIEEE Transactions on Power Apparatus and Systems, 1974