Components of nodal prices for electric power systems

Chen, Luonan; Suzuki, Hitoshi; Wachi, T.; Shimura, Y.

doi:10.1109/59.982191

Cited by 99 publications

(4 citation statements)

References 12 publications

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“…Many restructured power systems use market mechanisms to manage congestion. These mechanisms include locational marginal pricing (LMP), which assigns prices to different locations in the grid based on the marginal cost of congestion [8][9][10][11][12][13][14]. Market participants can then use these prices to make decisions regarding generation and consumption.…”

Section: Introductionmentioning

confidence: 99%

Investment and Bidding Strategies for Optimal Transmission Management Dynamics: The Italian Case

Persio

Fraccarolo

2023

Energies

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This paper explores the allocation process of Financial Transmission Rights (FTRs) in the Italian electricity market. FTRs are financial instruments allowing market participants to hedge against transmission congestion, also playing a critical role in ensuring the efficient use of the transmission system. We present a linear programming (LP) model that simulates the FTRs allocation process, taking into account the transmission capacity limits of the electric network when the total revenue is considered as the utility function. Obtained results highlight that our solution allows us to develop better investment and bidding strategies for optimal transmission management dynamics. In particular, numerical simulations show good results, with an overall MAPE of approximately 7%, indicating that the model accurately predicts the allocation of transmission rights across the network. Overall, the paper provides insights into the inner workings of the FTR allocation process in Italy, also providing improved market efficiency while increasing revenue for market participants.

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Section: Introductionmentioning

confidence: 99%

Investment and Bidding Strategies for Optimal Transmission Management Dynamics: The Italian Case

Persio

Fraccarolo

2023

Energies

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“…By comparing the market clearing results with or without considering the operational constraints of the transmission grid, the impact of transmission capacity on clearing prices is evaluated in reference [6]. A breaking down methodology directly to link each concerned factors to the nodal prices is proposed in [7], which describe the composition of the electricity price in detail. Reference [8] seeks to analyze the impact of privileged renewable electricity generation on spot market prices in Germany.…”

Section: Introductionmentioning

confidence: 99%

Sensitivity Analysis between Influencing Factors and Clearing Price in Electricity Spot Market

Jianing¹,

Jiang²,

Bao³

et al. 2022

Preprint

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“…With the intention of having efficient, transparent and effective pricing due to transmission network usage services, LMPs' model in this scheme is formulated to take into account a tariff for transmission usage and is referred to as LMP-TUT model. By incorporating this component, the scheme is expected to simplify the method and have acceptable transparency so that it may send an economic signal correctly to the market participants (Luonan et al, 2002;Fonseka & Shrestha, 2006). Accordingly, the formula for this model will be:…”

Section: A New Lmp-tut Model For Optimal Energy Pricingmentioning

confidence: 99%