Open AccessInter ISO Market Coordination by Calculating Border Locational Marginal Prices
Author(s) -
Antonija Babić,
Andrija T. Sarić
Publication year - 2013
Publication title -
advances in electrical and computer engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.254
H-Index - 23
eISSN - 1844-7600
pISSN - 1582-7445
DOI - 10.4316/aece.2013.02008
Subject(s) - industrial organization , business , econometrics , marginal cost , microeconomics , economics , computer science
In this paper the methodology for solving Locational Marginal Price (LMP) differences (inconsistency of LMPs) that arise at the boundary buses between separate power markets is proposed. The algorithm developed enables us to obtain consistent LMP values at the boundary buses between interconnected ISOs. A Primal-Dual Interior Point based optimal power flow (OPF) is applied, with complete set of power system physical limit constraints, to solve a regional spot market. The OPF is implemented such that producer and consumer behaviors are modeled simultaneously, while the welfare is maximized. In this paper a generalized methodology for multiple ISOs case is proposed and later it is practically applied on two interconnected independent entities. The algorithm for approximation of cost coefficients of generators and dispatchable loads for neighboring ISOs is proposed. The developed algorithm enables participating ISOs to obtain LMPs at the boundary buses with other interconnected ISOs. By controlling interchange of electric power at the scheduled level, regional spot markets are resolved eliminating possible exercise of market power by individual interconnected ISOs. Results of proposed methodology are tested on the IEEE 118-bus power system