Effects of remedial actions on LMPs

Locational marginal pricing (LMP) has been deployed by several wholesale markets in United States. Standard market design (SMD) proposed by FERC has also adopted LMP as the foundation for the open market power industry, LMP values are influenced by system operating conditions. If system is unconstrained, LMP values are flat throughout the network. When system is constrained, because of congestion or abnormal voltages, LMP values differentiate at various locations. Their values reflect the increased cost to deliver energy from marginal units to load buses. For speed and simplicity, most LMP models include merely constraints of transmission congestion and consider the generator unit real power output rescheduling as the only way to alleviate transmission congestion. However, in typical power systems there are other types of remedial actions (RAs) that can be applied to alleviate or eliminate system constraints. These RAs include shunt capacitor/reactor switching, transformer tap/phase shifter adjustment, etc. Remedial actions can affect LMPs by virtue of their effect on system active constraints. In this paper, we examine the effectiveness of remedial actions in smoothing LMP values. We propose an LMP computational models that includes RA effects as well as congestion and voltage constraints. The formulation of the problem is based on the single phase quadratized AC power flow model. The problem is linearized using the efficient co-state method leading to a standard linear program which is solved with standard techniques. An example power system is used to demonstrate the proposed framework. LMP values with and without RAs are computed and compared. Results show that effect of RAs on LMP is noteworthy and appropriate RAs can effectively flatten LMP values.

[1]  K. Tammer,et al.  Effects of SMD on system operations NYISO experience , 2003, 2003 IEEE Power Engineering Society General Meeting (IEEE Cat. No.03CH37491).

[2]  B. M. Balmat,et al.  The PJM Energy Market (US) , 2002, IEEE/PES Transmission and Distribution Conference and Exhibition.

[3]  K. Cheung,et al.  Evolution toward standardized market design , 2003 .

[4]  D. Sun.  LMP and FTR in the standard market design , 2002, IEEE Power Engineering Society Summer Meeting,.

[5]  N. S. Rau,et al.  Issues in the path toward an RTO and standard markets , 2003 .

[6]  G. Hamoud,et al.  Assessment of transmission congestion cost and locational marginal pricing in a competitive electricity market , 2004, IEEE Transactions on Power Systems.

[7]  Fang Yang,et al.  A bulk power system reliability assessment methodology , 2005, 2004 International Conference on Probabilistic Methods Applied to Power Systems.

[8]  A. Ott,et al.  Experience with PJM market operation, system design, and implementation , 2003 .

[9]  S. Bresler,et al.  PJM implementation of FERC standard market design , 2003, 2003 IEEE Power Engineering Society General Meeting (IEEE Cat. No.03CH37491).

[10]  J. Frame.  Locational marginal pricing , 2001, 2001 IEEE Power Engineering Society Winter Meeting. Conference Proceedings (Cat. No.01CH37194).

[11]  D. Gan,et al.  Locational marginal pricing-New England perspective , 2001, 2001 IEEE Power Engineering Society Winter Meeting. Conference Proceedings (Cat. No.01CH37194).

[12]  George Stefopoulos,et al.  An Improved Contingency Ranking Method , 2022 .

[13]  Jianzhong Tong.  Overview of PJM energy market design, operation and experience , 2004, 2004 IEEE International Conference on Electric Utility Deregulation, Restructuring and Power Technologies. Proceedings.

[14]  K. Cheung,et al.  Standard market design for ISO New England wholesale electricity market: an overview , 2004, 2004 IEEE International Conference on Electric Utility Deregulation, Restructuring and Power Technologies. Proceedings.

[15]  Jinxiang Zhu,et al.  Forecasting energy prices in a competitive market , 1999 .

[16]  Seabron Adamson,et al.  Efficiency of New York Transmission Congestion Contract Auctions , 2005, Proceedings of the 38th Annual Hawaii International Conference on System Sciences.

[17]  A.R. Desell,et al.  Some NYISO perspectives , 2004, IEEE Power and Energy Magazine.

[18]  O. Alsac,et al.  The rights to fight price volatility , 2004, IEEE Power and Energy Magazine.

[19]  G. A. Hamoud,et al.  Assessment of transmission congestion cost and locational marginal pricing in a competitive electricity market , 2004 .