Locational Marginal Prices
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The AURORAxmp Electric Market Model is the most comprehensive, reliable electricity market forecasting tool available.
Increasingly markets in the USA (such as the PJM Interconnection, New York, New England, CAISO and ERCOT) are using Locational Marginal Prices (LMP) for market nodes, Firm Transmission Rights (FTRs) or Transmission Congestion Rights (TCRs) to financial hedge against inter-zonal congestion costs on transmission corridors. AURORAxmp provides nodal pricing simulation capabilities for use in these electricity markets.
AURORAxmp has both an internal Nodal Simulation Capability and a highly integrated interface to the PowerWorld Simulator.
In LMP markets, the various location node prices reflect congestion pricing when constraints exist on a transmission network and when different generation resources must be dispatched to serve the nodes due to constraints. A security constrained system is where the transmission system operates even if a contingent event occurs, such as the loss of a line.
In simulations the price of electricity at each node on the network is a calculated as a “shadow price”. The shadow prices are based on the forecasted demand for the nodes in the simulation and the marginal cost of the optimized dispatchable resources that serve the nodes. The nodal prices are determined by supply and demand equilibrium where marginal generation units set the price at each node on an hourly basis. The LMP algorithm can simulate a security-constrained informed economic dispatch based on the supply and demand at the nodes.
In the AURORAxmp internal nodal capability, a “DC” simulation algorithm is used to model constraints and the dispatch of marginal resources are identified based on the load flow and other system and cost attributes. Marginal losses and its component of nodal prices can be determined.
In the PowerWorld Simulator, both a “DC” and “AC” solutions may be used in the determination of nodal prices, and in the case of “AC” simulations, the reactive power deficiencies can be captured. Marginal losses are also taken into account.
Both of these approaches simulate security-constrained systems and inform economic dispatch to produce nodal prices.
The AURORAxmp internal nodal capability - Click on the link below to learn More...
LMP/Nodal Capabilities
The AURORAxmp PowerWorld Simulator Interface capability - Click on the link below to Learn More...
AURORAxmp-PowerWorld Simulator Interface