Analysis of the influence of transmission congestion on power market based on LMP-lossless model

Bottlenecks on transmission line becomes an obstacle for the perfect competition of power market. One obvious drawback of such constraint is congestion. When congestion occurs, power market may be inefficient due to re-dispatch of generators connected to the grid. Energy prices vary throughout the network as generating costs raise in congested area, called locational marginal prices (LMP). In this paper, social cost as the side effect of transmission congestion on power market is analysed based on LMP-lossless model approach. To validate data and result, the 24-Bus IEEE Reliability Test System is used for investigation.

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