LMP Revisited: A Linear Model for the Loss-Embedded LMP

Yang, Zhifang; Bose, Anjan; Zhong, Haiwang; Zhang, Ning; Lin, Jeremy; Xia, Qing; Chen, Kang

doi:10.1109/tpwrs.2017.2648816

Cited by 59 publications

(23 citation statements)

References 19 publications

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“…The market clearing price at the bus level is known as LMPs. LMPs can be calculated using either DC Optimal Power Flow (OPF) or full AC OPF [36]. Despite the high precision of the AC OPF model in calculating the economic signals, its linear approximation, i.e., the DC OPF model is generally preferred to that by the market operators due to the convergence issues of the AC OPF [36].…”

Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

“…LMPs can be calculated using either DC Optimal Power Flow (OPF) or full AC OPF [36]. Despite the high precision of the AC OPF model in calculating the economic signals, its linear approximation, i.e., the DC OPF model is generally preferred to that by the market operators due to the convergence issues of the AC OPF [36]. LMP is the marginal increase in the total system cost due to one unit increase in the active power consumption at each bus [36].…”

Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

“…Despite the high precision of the AC OPF model in calculating the economic signals, its linear approximation, i.e., the DC OPF model is generally preferred to that by the market operators due to the convergence issues of the AC OPF [36]. LMP is the marginal increase in the total system cost due to one unit increase in the active power consumption at each bus [36]. The hourly LMP for the real power at each bus is the Lagrange multiplier associated with the real power balance constraints at that bus in the OPF model [33,35].…”

Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

“…It is the dual variable for the equality constraint at that bus [35]. The lossless DC OPF is widely used by the market operators to provide economic signals for market participants [36].…”

Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

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Decision Support for Negotiations among Microgrids Using a Multiagent Architecture

et al. 2018

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This paper presents a decision support model for negotiation portfolio optimization considering the participation of players in local markets (at the microgrid level) and in external markets, namely in regional markets, wholesale negotiations and negotiations of bilateral agreements. A local internal market model for microgrids is defined, and the connection between interconnected microgrids is based on nodal pricing to enable negotiations between nearby microgrids. The market environment considering the local market setting and the interaction between integrated microgrids is modeled using a multi-agent approach. Several multi-agent systems are used to model the electricity market environment, the interaction between small players at a microgrid scale, and to accommodate the decision support features. The integration of the proposed models in this multi-agent society and interaction between these distinct specific multi-agent systems enables modeling the system as a whole and thus testing and validating the impact of the method in the outcomes of the involved players. Results show that considering the several negotiation opportunities as complementary and making use of the most appropriate markets depending on the expected prices at each moment allows players to achieve more profitable results.

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Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

“…It is the dual variable for the equality constraint at that bus [35]. The lossless DC OPF is widely used by the market operators to provide economic signals for market participants [36].…”

Section: Microgrids' Internal (Local) Marketmentioning

confidence: 99%

See 2 more Smart Citations

Decision Support for Negotiations among Microgrids Using a Multiagent Architecture

et al. 2018

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“…However, the research work above does not consider the impact of generators' market power on the transmission network. When the transmission capacity of transmission network is limited, generators can artificially create transmission congestion to increase revenue, which leads to the rise of electricity price and the failure of electricity effective distribution [22]. In the power market, the LMP is used to measure the value of electric energy at different positions in the power system under various operation scenarios and reflect the severity of transmission congestion [23][24][25].…”

Section: Introductionmentioning

confidence: 99%

Multi-Stage Transmission Network Planning Considering Transmission Congestion in the Power Market

et al. 2020

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The uncertainty of generation and load increases in the transmission network in the power market. Considering the transmission congestion risk caused by various uncertainties of the transmission network, the optimal operation strategies of the transmission network under various operational scenarios are decided, aiming for the maximum of social benefit for the evaluation of the degree of scenario congestion. Then, a screening method for major congestion scenario is proposed based on the shadow price theory. With the goal of maximizing the difference between the social benefits and the investment and maintenance costs of transmission lines under major congestion scenarios, a multi-stage transmission network planning model based on major congestion scenarios is proposed to determine the configuration of transmission lines in each planning stage. In this paper, the multi-stage transmission network planning is a mixed integer linear programming problem. The DC power flow model and the commercial optimization software CPLEX are applied to solve the problem to obtain the planning scheme. The improved six-node Garver power system and the simplified 25-node power system of Zhejiang Province, China are used to verify the effectiveness of the proposed multi-stage planning model.

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