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Presentation
Locational Marginal Pricing Basics for Restructured Wholesale Power Markets
Proceedings of the IEEE Power and Energy Society General Meeting
  • Haifeng Liu, California ISO
  • Leigh Tesfatsion, Iowa State University
  • A.A. Chowdhury, California ISU
Document Type
Conference Proceeding
Conference
2009 IEEE Power & Energy Society General Meeting
Publication Version
Submitted Manuscript
Link to Published Version
http://dx.doi.org/10.1109/PES.2009.5275503
Publication Date
1-1-2009
DOI
10.1109/PES.2009.5275503
Conference Title
2009 IEEE Power & Energy Society General Meeting
Conference Date
July 26-30, 2009
Geolocation
(51.0486151, -114.0708459)
Abstract
Abstract: Although Locational Marginal Pricing (LMP) plays an important role in many restructured wholesale power markets, the detailed derivation of LMPs as actually used in industry practice is not readily available. This lack of transparency greatly hinders the efforts of researchers to evaluate the performance of these markets. In this paper, different AC and DC optimal power flow (OPF) models are presented to help understand the derivation of LMPs. As a byproduct of this analysis, the paper provides a rigorous explanation of the basic LMP and LMP-decomposition formulas (neglecting real power losses) presented without derivation in the business practice manuals of the U.S. Midwest Independent System Operator (MISO).
Comments

© 2009 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works. DOI: 10.1109/PES.2009.5275503

Copyright Owner
IEEE
Language
en
File Format
application/pdf
Citation Information
Haifeng Liu, Leigh Tesfatsion and A.A. Chowdhury. "Locational Marginal Pricing Basics for Restructured Wholesale Power Markets" Calgary, Alberta, CAProceedings of the IEEE Power and Energy Society General Meeting (2009)
Available at: http://works.bepress.com/leigh-tesfatsion/42/