Locational Marginal Transmission Pricing Assessment in Deregulated Power System

Electricity nodal pricing, also known as LMP, boosts the efficiency of the electricity market in the restructured competitive electricity market. It also helps to relieve congestion by encouraging efficient investment decisions by market leaders. Adequately placed generation addition, transmission, and demand response, as well as increased access to energy from less expensive generators, further ensure strong and competitive transmission prices. This study offered a practical electricity nodal pricing model based on AC-DC Optimal Power Flow (OPF). Locational Marginal Price (LMP) value variations under transmission limitation conditions were also investigated. For a real data bus system, simulation is done on the 220, 400, and 765 kV MSETCL systems and the spot pricing results are presented.