Locational Marginal Price Calculation Implying Different System Uncertainties

Abstract

This paper presents locational marginal price (LMP) calculation technique facing different operation conditions. Uncertainties in power systems such as loosing transmission line of load change could be consider a common case. In calculating LMP, the effect of line flow limits will affect the prices at each bus. Also, the effect of shifted the load from bus to another is investigated. LMP is a technique used in market to determine the cost of supplying the next incremental electrical energy at a specific bus. Four different case of LMP are discussed in this paper. Three and four simple bus networks are used to demonstrate different cases of LMP.